Salty Snacks - US

Published by: Mintel International Group Ltd.

Published: Aug. 1, 2009 - 109 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Advertising creative

Abbreviations and terms

Abbreviations

Executive Summary

Salty snack market reaches $17.7 billion in 2009

Most types of salty snacks are thriving amid economic recession

Frito-Lay tops the market, but private label growth outpaces all leading companies

New salty snack products are healthy, hot and spicy

Children, teens and young adults aged 18-24 are core consumers of salty snacks

Consumer attitudes and motivations

MARKET SIZE AND FORECAST

Key points

Salty snacks thrive as economy worsens

Product innovation is also driving growth

Sales and forecast

Figure 1: FDMx sales and forecast of salty snacks, at current prices, 2004-14

Figure 2: FDMx sales and forecast of salty snacks, at inflation-adjusted prices, 2004-14

Walmart sales

COMPETITIVE CONTEXT

Salty snacks are recession-proof…

… but the troubled economy has hurt brand loyalty

Competition from other snack foods

Figure 3: Total U.S. sales and forecast of select snack foods at current prices, 2003-08

Figure 4: Everyday retail prices of select snack products in Chicago market, July 2009

SEGMENT PERFORMANCE

Key points

Most types of salty snacks are thriving amid economic recession

Figure 5: FDMx sales of salty snacks, by segment, 2007 and 2009

SEGMENT PERFORMANCE—POTATO CHIPS

Key points

Eating in and brown-bagging trends give chips sales a needed boost

Sales and forecast—potato chips

Figure 6: FDMx sales and forecast of potato chips, at current prices, 2004-14

Figure 7: FDMx sales and forecast of potato chips, at inflation-adjusted prices, 2004-14

SEGMENT PERFORMANCE—TORTILLA CHIPS

Key points

New varieties and value play by Frito-Lay increase drove sales in 2008-09

Sales and forecast—tortilla chips

Figure 8: FDMx sales and forecast of tortilla chips, at current prices, 2004-14

Figure 9: FDMx sales and forecast of tortilla chips, at inflation-adjusted prices, 2004-14

SEGMENT PERFORMANCE—SNACK NUTS AND SEEDS

Key points

Recession hurts sales of nuts

Sales and forecast—snack nuts and seeds

Figure 10: FDMx sales and forecast of snack nuts and seeds, at current prices, 2004-14

Figure 11: FDMx sales and forecast of snack nuts and seeds, at inflation-adjusted prices, 2004-14

SEGMENT PERFORMANCE—POPCORN

Key points

Rise in family movie and game nights boost popcorn sales

Sales and forecast—popcorn

Figure 12: FDMx sales and forecast of popcorn, at current prices, 2004-14

Figure 13: FDMx sales and forecast of popcorn, at inflation-adjusted prices, 2004-14

SEGMENT PERFORMANCE—PRETZELS

Key points

Pretzels are an economical snack option

Sales and forecast—pretzels

Figure 14: FDMx sales and forecast of pretzels, at current prices, 2004-14

Figure 15: FDMx sales and forecast of pretzels, at inflation-adjusted prices, 2004-14

SEGMENT PERFORMANCE—CHEESE SNACKS

Key points

Cheese snacks sales thrive amid U.S. recession

Sales and forecast—cheese snacks

Figure 16: FDMx sales and forecast of cheese snacks, at current prices, 2004-14

Figure 17: FDMx sales and forecast of cheese snacks, at inflation-adjusted prices, 2004-14

SEGMENT PERFORMANCE—CORN SNACKS

Key points

Lackluster sales pick up a bit in 2008

Sales and forecast—corn snacks

Figure 18: FDMx sales and forecast of corn snacks, at current prices, 2004-14

Figure 19: FDMx sales and forecast of corn snacks, at inflation-adjusted prices, 2004-14

SEGMENT PERFORMANCE—OTHER SALTY SNACKS

Key points

Other salty snacks outpace all other market segments

Sales and forecast—other salty snacks

Figure 20: FDMx sales and forecast of other salty snacks, at current prices, 2004-14

Figure 21: FDMx sales and forecast of other salty snacks, at inflation-adjusted prices, 2004-14

RETAIL CHANNELS

Key points

Supermarkets losing share to value-focused channels

Figure 22: Total sales of salty snacks, by retail channel, 2007 and 2009

RETAIL CHANNELS—SUPERMARKETS

Key point

Supermarkets are using a variety of strategies to compete against discount outlets

Supermarket sales

Figure 23: Sales of salty snacks at supermarkets, at current prices, 2004-09

Figure 24: Sales of salty snacks at supermarkets, at inflation-adjusted prices, 2004-09

MARKET DRIVERS

Brown-bagging trend boon for salty snacks

Figure 25: Change in eating and cooking habits as a result of the current economic climate, by gender, May 2009

Healthy eating trend has legs

Figure 26: Attitude towards health, 2004 and 2009

CDC says Americans are eating too much salt

Food phobia: Salmonella outbreaks hurt consumer confidence

Transparency: The optimal solution

Baby Boomers key to category growth

Figure 27: U.S. population of adults aged 18 and over, by age group, 2003-13

Figure 28: Consumption of specific salty snacks, by age, June 2009

LEADING COMPANIES

Key points

Market leader Frito-Lay boosts share by offering value

Private label growth outpaces all leading players

Figure 29: FDMx sales of leading salty snack companies, 2008 and 2009

BRAND SHARE—POTATO CHIPS

Key points

Amid troubled economy, store brands steal share from leading brands

Figure 30: FDMx brand sales of potato chips in the U.S., 2008 and 2009

BRAND SHARE—TORTILLA CHIPS

Key points

Tostitos and Doritos comprise nearly three quarters of sales

Figure 31: FDMx brand sales of tortilla chips in the U.S., 2008 and 2009

BRAND SHARE—SNACK NUTS AND SEEDS (INCLUDING CORN NUTS)

Key points

Planters leads the market, but loses share to Blue Diamond and private label

Figure 32: FDMx brand sales of snack nuts and seeds in the U.S., 2008 and 2009

BRAND SHARE—POPCORN

Key points

Orville Redenbacher’s and Pop Secret are on top but losing share

Figure 33: FDMx brand sales of popcorn in the U.S., 2008 and 2009

BRAND SHARE—PRETZELS

Key points

Private label outperforms leading brands

Figure 34: FDMx brand sales of pretzels in the U.S., 2008 and 2009

BRAND SHARE—CHEESE SNACKS

Key points

Cheetos dominates the cheese snack market

Figure 35: FDMx brand sales of cheese snacks in the U.S., 2008 and 2009

BRAND SHARE—CORN SNACKS

Key points

Fritos control the market, but private label is growth leader

Figure 36: FDMx brand sales of corn snacks in the U.S., 2008 and 2009

BRAND SHARE—OTHER SALTY SNACKS

Key points

Market lacks a clear brand leader

Figure 37: FDMx brand sales of other salty snacks in the U.S., 2008 and 2009

BRAND QUALITIES

Doritos—not just another tortilla chip

Staying relevant and irreverent

New varieties keep snackers coming back for more

“Late Night” promotion fuses music, technology and snacking

Innovative marketing tactics target core Doritos consumers

INNOVATION AND INNOVATORS

Key points

Pace of innovation slows in first half of 2009

Figure 38: Number of new salty snack introductions in the U.S, 2004-09

Top 20 product claims, 2007-09

Figure 39: Top 20 claims in new salty snack products in the U.S., 2007-09

All natural and organic

Hold the salt

Whole grains

Baked, not fried

Portion control packaging

Hot and spicy flavors

Economy size and eco-friendly packaging

ADVERTISING AND PROMOTION

Key points

Frito-Lay’s SunChips

Figure 40: SunChips television ad, 2009

Figure 41: Sun Chips Print ad, 2009

Figure 42: Smartfood television ad, 2009

Lay’s

Figure 43: Lay’s television ad, 2009

Pringles

Figure 44: Pringles Super Stack television ad, 2009

Cheetos

Figure 45: Giant Cheetos television ad, 2009

Orville Redenbacher’s

Figure 46: Orville Redenbacher’s popcorn television ad, 2009

SALTY SNACK USAGE AND FREQUENCY

Key points

Personal usage of salty snacks by age

Figure 47: Incidence of consumption of specific salty snacks, by age, June 2009

Personal usage of salty snacks by race/Hispanic origin

Figure 48: Incidence of consumption of specific salty snacks, by race/Hispanic origin, June 2009

Personal usage of salty snacks by presence of kids in household

Figure 49: Incidence of consumption of specific salty snacks, by number of children in household, June 2009

Figure 50: Incidence of consumption of specific salty snacks, by presence of children in household, June 2009

Usage frequency

Figure 51: Frequency of consumption of salty snacks, by age, June 2008

Usage occasions

Figure 52: Incidence of consumption of salty snacks, by meal/day part, by age, June 2009

Brand preferences

Figure 53: Top household brand preferences, selected salty snacks, October 2007-December 2008

Salty snack usage trends

Figure 54: Household use of potato chips, popcorn products, corn/tortilla/cheese snacks, pretzels, and nuts, 2004-08

Figure 55: Mean number of bags/packages of potato chips, popcorn products, corn/tortilla/cheese snacks, pretzels, and nuts used by household in the last 30 days, 2004-08

CHILD AND TEEN USAGE OF SALTY SNACKS

Key points

Children’s usage of salty snacks

Figure 56: Incidence of eating salty snacks among children aged 6-11, by gender and race/Hispanic origin, October 2007-December 2008

Teen’s usage of salty snacks

Figure 57: Incidence of eating salty snacks among teens, by gender and race/Hispanic origin, October 2007-December 2008

Usage frequency—kids and teens

Figure 58: Teenagers’ and children’s frequency of consumption of salty snacks, June 2008

Usage occasions—kids and teens

Figure 59: Teenagers’ and children’s consumption of salty snacks, by meal/day part, June 2008

Parents’ influence on kids’ snacking

Figure 60: Opinions about salty snacks and children’s diets, by gender (of parent) June 2009

OPINIONS AND ATTITUDES ABOUT SALTY SNACKS

Key points

Interest in healthier snacks by gender

Figure 61: Opinions about salty snacks, by gender, June 2009

Interest in healthier snacks by age

Figure 62: Opinions about salty snacks, by age, June 2009

Interest in healthier snacks by presence of children in household

Figure 63: Opinions about salty snacks, by presence of children in hh, June 2009

Opinions about salty snacks and health by gender

Figure 64: Attitudes towards health and salty snacks, by gender, June 2009

Opinions about salty snacks and health by age

Figure 65: Opinions about health issues and salty snacks, by age, June 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

Household usage

Figure 66: Personal and household usage of salty snacks, June 2009

Personal consumption of salty snacks by income

Figure 67: Consumption of specific salty snacks, by household income, June 2009

Frequency of consuming salty snacks (per week)

Figure 68: Frequency of consumption of salty snacks, by race/Hispanic origin, June 2009

Figure 69: Frequency of consumption of salty snacks, by presence of children in household, June 2009

Children’s salty snack brand preferences

Figure 70: Top brand preferences of children, selected salty snacks, October 2007-December 2008

Teenagers’ salty snack brand preferences

Figure 71: Top brand preferences of teenagers, selected salty snacks, October 2007-December 2008

Opinions about salty snacks

Figure 72: Opinions about health issues and salty snacks, by race/Hispanic origin, June 2009

Figure 73: Opinions about salty snacks, by household income, June 2009

Figure 74: Consumption of salty snacks, by meal/day part, by race/Hispanic origin, June 2009

Figure 75: Consumption of salty snacks, by meal/day part, by presence of children in household, June 2009

Interest in healthier snacks by race/Hispanic origin

Figure 76: Opinions about salty snacks, by race/Hispanic origin, June 2009

Opinions about salty snacks and health by presence of children in household

Figure 77: Opinions about health issues and salty snacks, by presence of children in hh, June 2008

APPENDIX: TRADE ASSOCIATIONS

Abstract

Salty snacks have performed strongly since the onset of the economic recession, largely because they offer consumers good value. FDMx sales increased a strong 15.4% from 2007 to 2009. As discussed in the Competitive Context section of this report, salty snacks are priced considerably less per serving compared to many other snack foods, such as cereal and nutrition bars, yogurt and fresh fruit.

The poor economy has led to a decline in brand loyalty. The bottom line is that shoppers are willing to switch brands to get the best price. Price is a key factor in determining what brand to buy; however some brands, particularly premium ones, may not want to reduce prices for the fear of devaluing their brand. Frito-Lay recently increased the weight of packages of Doritos, Tostitos and Cheetos by 20%, adding a bold “20% More Free” banner across the top of the bag. One way around this is to give consumers more product for the money. All three brands experienced double-digit sales growth during May 2008-09.

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