Snacking on the Go - UK - April 2008

Published by: Mintel International Group Ltd.

Published: Apr. 1, 2008

Table of Contents

ISSUES IN THE MARKET

Key themes

Definition

Abbreviations

MARKET IN BRIEF

Snacking on the go - a dynamic sector

Changing attitudes contribute to growth

Manufacturers respond to demand for healthier products

Strong advertising support for leading brands

Potential for significant growth in the future

INTERNAL MARKET ENVIRONMENT

Key points

Healthy eating

Figure 1: Agreement with selected lifestyle statements relating to health and diet, 2003-07

Obesity is rising

Figure 2: Current and projected levels of obesity among UK children, by age and gender, 2003 and 2010

Are consumers in denial?

Figure 3: Agreement with selected lifestyle statements, 2003-07

The snacking impulse

Figure 4: Agreement with selected lifestyle statements, all adults and those who agree with the statements ‘I often eat snacks while on the move rather than eating a proper meal’, ‘I often eat between meals, I keep snacking’ and ‘I don’t normally eat between meals’, 2007

Children love to snack

Figure 5: Children (7-10-year-olds) who regularly snack/nibble between meals, 2006 and 2007

Figure 6: Adolescents (11-16-year-olds) who regularly snack/nibble between meals, 2003-07

Figure 7: What youngsters (aged 7-10 and 11-16) snack/nibble on between meals, 2007

Vending has increased availability

Figure 8: Sales of food and drink by vending machines, 2003-07

Ethical snacking

Figure 9: Agreement with selected lifestyle statements relating to ethical purchasing, 2003-07

Concern about carbon footprint

BROADER MARKET ENVIRONMENT

Key points

A nation on the move

Figure 10: Distance travelled by UK consumers, 1975/76-2006

…but happy to take a break

Value of onboard catering has declined

Workers under pressure

Figure 11: Working population, by gender, 2003-13

Figure 12: Comparison of working hours, 2004

Student snackers

Figure 13: Number of students in HEIs, 2000/01-2005/06

Personal disposable income continues to rise

Figure 14: Trends in personal disposable income (PDI) and consumer expenditure, 2003-13

Children have more to spend too

Figure 15: Total amount of money received in a week, 7-14-year-olds, 2003-07

Figure 16: Total amount of money received in a month, 15-16-year-olds, 2003-07

Changes in age structure favour snacking

Figure 17: Trends in the age structure of the UK population, by gender, 2003-13

Average household size set to fall

Figure 18: UK Household sizes, 2003-13

Demographics offer opportunities for premiumisation

Figure 19: Forecast adult population trends, by socio-economic group, 2003-13

‘5-a-day’

COMPETITIVE CONTEXT

Key points

Takeaway…

Figure 20: Consumption of takeaway foods in the last 12 months, 2003-07

…or eat in

Figure 21: Frequency of eating in at fast-food restaurants in the last 12 months, 2003-07

Figure 22: Usage of coffee shops and sandwich bars in the last 12 months, 2003-07

Snacking at home

Competition for pocket money spend is keen

Figure 23: How money is spent, 7-10-year-olds, 2002-06

STRENGTHS AND WEAKNESSES IN THE MARKET

Strengths

Weaknesses

MARKET SIZE AND FORECAST

Key points

On-the-go snacking enjoys strong value growth

Figure 24: Estimated number of adult on-the-go snacking occasions, 2008

Product sectors deliver a mixed performance

Figure 25: UK retail sales of selected snacking products, by category, by value, 2003-08

Future trends

SEGMENT PERFORMANCE

Key points

Cake bars return to growth

Cereal bars driven by NPD

Snack packs boost sales of dried fruit

Impulse ice cream is weather dependent

Sugar confectionery boosted by more natural ingredients

Sweet biscuits adapt and survive

Chocolate consumers trade up

Crisps and snacks embrace healthy eating

BRAND COMMUNICATION AND PROMOTION

Key points

Adspend fluctuates

Figure 26: Advertising expenditure on selected snack companies, from 01-Jan-03 to 31-Dec-07

TV dominates spend

Figure 27: Adversiting expenditure on selected snack companies, by media type, for calendar year 2007

Advertising could have greater on-the-go focus

Walkers aims for a more natural image

McCoy’s targets men

Crunchy Nut Commuters

Adspend set to rise in 2008?

WHO SNACKS WHEN?

Key points

Snacking on the increase

Figure 28: Frequency of snacking on the go, 2006-08

Under-24s are most frequent on-the-go snackers

SNACKING PREFERENCES

Key points

Snacking gets healthier

Figure 29: Types of snacks eaten on the go most commonly, 2006-08

Fresh fruit is increasingly popular

Cheese - small but dynamic

Pasties and pies in decline

Healthy vs hearty

…not forgetting indulgence

Hydration is important too

Dedicated snackers favour chocolate

Figure 30: Types of snacks eaten on the go most commonly, by frequency of snacking on the go, January 2008

APPENDIX: WHO SNACKS WHEN?

Frequency of snacking on the go, by detailed demographics

Figure 31: Frequency of snacking on the go, by detailed demographics, January 2008

APPENDIX: SNACKING PREFERENCES

Types of snacks eaten on the go most commonly, by detailed demographics

Figure 32: Types of snacks eaten on the go most commonly, by detailed demographics, January 2008

Types of snacks eaten on the go most commonly, by detailed demographics

Figure 33: Types of snacks eaten on the go most commonly, by detailed demographics, January 2008

APPENDIX: RESEARCH METHODOLOGY

Abstract

• There has been strong growth in the value of sales attributable to on-the-go snacking across a broad range of food and drink products.
• A rise in snacking occasions has been driven by an increase in the number of adults snacking more frequently, ie at least once a day.
• Increasingly, snacking on the go is becoming second nature to many adults. The proportion saying they could never eat in the street/on the move has declined significantly, but more and more consumers seem unaware of their motivation to snack on the go.
• The healthy eating trend has had a heavy influence over new product development (NPD), leading to numerous product reformulations to reduce sugar, fat and salt content, as well as a plethora of healthier new product launches.
• Merchandising plays a central role in developing on-the-go sales, since many on-the-go snackers are, by definition, short of time and will only make their selection from the choice immediately available to them.

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