Healthy Snacking - US

Published by: Mintel International Group Ltd.

Published: Jun. 1, 2009 - 115 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Figure 1: Foods eaten as snacks and as healthy snacks, February 2009

Data sources

Sales data

Consumer survey data

Advertising creative

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Market at a glance

Challenges abound

But so do opportunities

12 diverse segments show mixed results through FDMx

Innovations include fortified/functional versions of familiar snacks and new snacks that blur category lines

What is a healthy snack?

What do people want in healthy snacks?

Race/Hispanic origin affects views on snack foods

Better-for-you and better-for-planet positioning of SunChips

Creating a weapon against “bad” snacks helps promote sales

MARKET SIZE AND FORECAST

Key points

Snack food sales rise, but not as fast as inflation

Volumes decline while prices rise

Figure 2: FDMx sales of healthy snacks, at current prices, 2003-13

Figure 3: FDMx sales of healthy snacks, at inflation-adjusted prices, 2003-13

COMPETITIVE CONTEXT

Key points

More competition from private label

Snack bars

Yogurt

QSR value menus and snacks continue to compete for snack dollars

Innovation in natural/organic markets gives direction for larger healthy snacking market

SEGMENT PERFORMANCE

Key points

Dairy segments show strong growth

Fiber in snack bars has sparked new interest in a stagnating segment

Trail mix and rice/popcorn cakes grow

Dried fruit/snacks and BFY chips grow slowly

Sales and forecast

Figure 4: FDMx sales of healthy snacks, by segment, 2006 and 2008

SEGMENT PERFORMANCE—CHEESE

Key points

Natural cheese carries segment

Most forms of natural cheese grow

Natural cheese takes share from processed

Incidence of eating cheese as a healthy snack

Figure 5: Incidence of eating cheese as a snack and as a healthy snack, 2009

SEGMENT PERFORMANCE—CEREAL

Key point

Mature segment with little growth

Thinking outside the box

Healthier options come at a premium

Incidence of eating cereal as a healthy snack

Figure 6: Incidence of eating cereal as a snack and as a healthy snack, 2009

SEGMENT PERFORMANCE—CRACKERS

Key points

Uneven sales results vary by type of cracker

Baked and wholegrain versions propel sales

Incidence of eating crackers as a healthy snack

Figure 7: Incidence of eating crackers as a snack and as a healthy snack, 2009

Sales and forecast

Figure 8: FDMx sales and forecast of crackers, at current prices, 2003-13

SEGMENT PERFORMANCE—YOGURT

Key points

Strong growth through innovation and the addition of new flavors

Functional benefits grow segment

Dessert-flavored yogurts complement traditional fruit varieties

Superfruits find a new medium

Incidence of eating yogurt as a healthy snack

Figure 9: Incidence of eating yogurt as a snack and as a healthy snack, 2009

SEGMENT PERFORMANCE—ENERGY, CEREAL, DIET AND SNACK BARS

Key points

Inherent portability and convenience grow segment

Bars are packed with fiber

Sales of nutrition and energy bars in the natural channel

Figure 10: Natural product supermarket retail sales of nutrition and energy bars, at current prices, 2006-08

Incidence of eating energy/diet/cereal/snack bars as a healthy snack

Figure 11: Incidence of eating energy/diet/cereal/snack bars as a snack and as a healthy snack, 2009

SEGMENT PERFORMANCE—NUTS AND SEEDS

Key points

Sales rise even amid safety concerns

Snack nuts are taking on new shapes and flavors

Recalls have not had severe negative effects

Incidence of eating nuts and seeds as a healthy snack

Figure 12: Incidence of eating nuts and seeds as a snack and as a healthy snack, 2009

Sales and forecast

Figure 13: FDMx sales and forecast of nuts and seeds, at current prices, 2003-13

SEGMENT PERFORMANCE—DRIED FRUIT AND FRUIT SNACKS

Key points

Fruit snacks a drag on sales

Superfruits attract attention to the segment

Prunes get a makeover

Interest in other dried fruits detracts from raisins

Incidence of eating dried fruit and fruit snacks as a healthy snack

Figure 14: Incidence of eating dried fruit and fruit snacks as a snack and as a healthy snack, 2009

Sales and forecast

Figure 15: FDMx sales and forecast of dried fruit and fruit snacks, at current prices, 2003-13

SEGMENT PERFORMANCE—BFY CHIPS

Key points

Olestra and Light chips drag on sales

Whole grains and baked chips drive sales

Incidence of eating potato/corn chips as a healthy snack

Figure 16: Incidence of eating potato/corn chips as a snack and as a healthy snack, 2009

Sales and forecast of BFY chips

Figure 17: FDMx sales and forecast of BFY chips, at current prices, 2003-13

SEGMENT PERFORMANCE—POPCORN

Key points

Diacetyl concerns and lack of innovation stifle growth

RTE and kernel go organic

Incidence of eating popcorn as a healthy snack

Figure 18: Incidence of eating popcorn as a snack and as a healthy snack, 2009

Sales and forecast

Figure 19: FDMx sales and forecast of popcorn, at current prices, 2003-13

SEGMENT PERFORMANCE—PRETZELS

Key points

Thins and crisps and flavored varieties grow sales

Incidence of eating pretzels as a healthy snack

Figure 20: Incidence of eating pretzels as a snack and as a healthy snack, 2009

Sales and forecast

Figure 21: FDMx sales and forecast of pretzels, at current prices, 2003-13

SEGMENT PERFORMANCE—TRAIL MIX

Key point

Exotic mixes give new life to the segment

Incidence of eating trail mix as a healthy snack

Figure 22: Incidence of eating trail mix as a snack and as a healthy snack, 2009

Sales and forecast

Figure 23: FDMx sales and forecast of trail mix, at current prices, 2003-13

SEGMENT PERFORMANCE—RICE/POPCORN CAKES

Key points

Rice cakes struggle to deliver the flavor consumers want

Incidence of eating rice/popcorn cakes as a healthy snack

Figure 24: Incidence of eating rice/popcorn cakes as a snack and as a healthy snack, 2009

Sales and forecast

Figure 25: FDMx sales and forecast of rice/popcorn cakes, at current prices, 2003-13

MARKET DRIVERS

Key points

Unemployment and fears of job loss lead consumers to tighten food budgets

Figure 26: Seasonally adjusted unemployment rate, 16 years and older, by month, 2000-09

Weight issues create market for healthier alternatives

Figure 27: Age-adjusted prevalence of overweight and obesity among U.S. adults, age 20 and over, 1988/94-2005/06

Childhood obesity is an ongoing concern

Figure 28: Prevalence of overweight among children and adolescents aged 6-19 years, 1971/74-2005/06

Growth in food allergies creates market for low-allergen foods

More people reading labels means fewer foods may be seen as “healthy”

SELECTED BRAND ANALYSIS—CHEESE

Key points

Kraft processed and natural sales take a tumble

Sargento grows on natural products

Manufacturer and brand sales

Figure 29: Selected FDMx brand sales of cheese, 2008 and 2009

SELECTED BRAND ANALYSIS—CEREAL

Key point

Kashi meets BFY demand and hits popular price point

Special K as a dieter’s friend

Manufacturer and brand sales

Figure 30: Selected FDMx brand sales of cereal, 2008 and 2009

SELECTED BRAND ANALYSIS—CRACKERS

Key point

More BFY brands hit FDMx

Whole grains and baked varieties boost traditional brands

Toasted versions are on the decline

Manufacturer and brand sales

Figure 31: Selected FDMx brand sales of crackers, 2008 and 2009

SELECTED BRAND ANALYSIS—YOGURT

Key points

Brands promoting digestive health thrive

Manufacturer and brand sales

Figure 32: Selected FDMx brand sales of yogurt, 2008 and 2009

SELECTED BRAND ANALYSIS—ENERGY, CEREAL, DIET AND SNACK BARS

Key points

Fiber continues to reinvigorate category

Sales of diet bars uneven

Manufacturer and brand sales

Figure 33: Selected FDMx brand sales of energy/cereal/diet/snack bars, 2008 and 2009

SELECTED BRAND ANALYSIS—NUTS AND SEEDS

Key point

Innovative packaging helps consumers count calories

Kraft expands its natural offerings

Manufacturer and brand sales

Figure 34: Selected FDMx brand sales of nuts and seeds, 2008 and 2009

SELECTED BRAND ANALYSIS—DRIED FRUIT AND FRUIT SNACKS

Key points

Antioxidants and fiber hit the sweet spot

Manufacturer and brand sales

Figure 35: Selected FDMx brand sales of dried fruit and fruit snacks, 2008 and 2009

SELECTED BRAND ANALYSIS—BFY CHIPS

Key points

BFY snack giants lose traction

Manufacturer and brand sales

Figure 36: Selected FDMx brand sales of BFY chips, 2008 and 2009

SELECTED BRAND ANALYSIS—POPCORN

Key points

Natural and organic are the key words

Smart Food appears in your microwave

Pop Secret changes hands

Manufacturer and brand sales

Figure 37: Selected FDMx brand sales of popcorn, 2008 and 2009

SELECTED BRAND ANALYSIS—PRETZELS

Key point

Snyder’s multigrain misses mark

Manufacturer and brand sales

Figure 38: Selected FDMx brand sales of pretzels, 2008 and 2009

SELECTED BRAND ANALYSIS—TRAIL MIX

Key point

Kraft launches more natural products

Manufacturer and brand sales

Figure 39: Selected FDMx brand sales of trail mix, 2008 and 2009

SELECTED BRAND ANALYSIS—RICE/POPCORN CAKES

Key point

Highly concentrated segment owned by Quaker Oats Company (PepsiCo)

Manufacturer and brand sales

Figure 40: Selected FDMx brand sales of rice/popcorn cakes, 2008 and 2009

BRAND QUALITIES

Key point

SunChips, the better-for-the-planet snack

INNOVATION AND INNOVATORS

Omega-3 and antioxidants in new versions of familiar snacks

Nut crisps offer a non-traditional way to consume nuts

ADVERTISING AND PROMOTION

Key points

MANUFACTURER INITIATIVES

PepsiCo Inc

Quaker Foods

Frito-Lay

A Woman’s World (Frito-Lay)

Figure 41: Awomansworld.com (Frito-Lay) TV ad, 2009

Brand-specific ad activity

Kashi wants to make all eating occasions healthier

Philadelphia Cream Cheese (Kraft Foods) is not just for breakfast anymore

Emerald Nuts (Diamond Foods) uses humor

Yoplait Whips (General Mills) become an indulgent, but healthy treat

Figure 42: Yoplait Whips TV ad, 2008

Dannon Light & Fit (Groupe Danone) is too good to resist

Figure 43: Dannon Light & Fit TV ad, 2009

Activia (Groupe Danone) works or your money back

Kellogg’s Special K (Kellogg Co.) competes with traditional chocolate treats

Figure 44: Kellogg’s Special K Chocolately Delight TV ad, 2009

Sunsweet Ones (Sunsweet Growers) aren’t your grandparents’ prunes

Figure 45: Sunsweet Ones TV ad, 2007

Partnerships with retailers

WHAT IS A HEALTHY SNACK?

Key points

Snacks more likely to be salty than fruity

Figure 46: Foods eaten as snacks and as healthy snacks, February 2009

Women have a broader view of what makes a healthy snack

Figure 47: Foods eaten as snacks, by gender, February 2009

Figure 48: Foods eaten as healthy snacks, by gender, February 2009

Healthy snacking is a daily occurrence

Figure 49: Incidence of eating a healthy snack, February 2009

ATTITUDES AND MOTIVATIONS

Key points

Attributes that make a snack healthy

Figure 50: Important attributes when choosing a healthy snack, by gender, February 2009

Younger adults willing to sacrifice taste for health, while older adults look for what’s not in a snack

The search for energy not limited to drinks

Figure 51: Important attributes when choosing a healthy snack, by age, February 2009

No surprise—women place higher value on healthy eating

Figure 52: Behaviors and opinions towards healthy snacking, by gender, July 2007-September 2008

Healthy eating concerns appear to be grown into

Figure 53: Behaviors and opinions towards healthy snacking, by age of head of household, July 2007-September 2008

Majority of respondents have not let the down economy impact their snacking habits

Figure 54: How snacking habits have changed along with changes in economy, by age, February 2009

RACE AND HISPANIC ORIGIN

Key points

Black and Hispanic respondents show higher interest in price and nutrition

Figure 55: Important attributes when choosing a healthy snack, by race/Hispanic origin, February 2009

Hispanics least likely to snack between meals, but most likely to try new healthy snacks

Figure 56: Behaviors and opinions towards healthy snacking, by race/Hispanic origin, July 2007-September 2008

Hispanics changing snacking habits with economy

Figure 57: How snacking habits have changed along with changes in economy, by race/Hispanic origin, February 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

Detailed sample sizes for foods eaten as snack and considered a healthy snack

Figure 58: Foods eaten as snacks and as healthy snacks, February 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

According to Mintel’s exclusive consumer survey, taste/flavor is the most important attribute respondents are looking for in healthy snack foods. Known flavors such as chocolate or banana nut give consumers looking for healthier products an idea of what they can expect—there is less risk in trying a new product if the product has chocolate or some other flavor that consumers generally find appealing.

New products such as Trader Joe’s Wholegrain Chocolatey-Filled Cereal Bites are a happy medium between good for you and good taste.

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