Chips, Salsa and Dips - US - January 2015

Chips, Salsa and Dips - US - January 2015 This report looks at the following areas:

  • Can health claims be leveraged as much as flavor?
  • How will new styles and formats impact the category?
  • What new flavors are likely to take hold in the category?
The US chips, salsa, and dips category sales are primarily driven by growing snacking behavior in the US, as well as expanding consumer palates that demand the frequent introduction of new styles and flavors. Demographics including Millennials, Hispanics, and households with children also drive sales. New styles of chips that combine flavor with healthier ingredients, such as corn- or potato-vegetable hybrids, and dips such as hummus, yogurt-based dips, and spicier, fresher salsas have potential to fuel growth.


SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
EXECUTIVE SUMMARY
Moderate growth driven by snacking trend
Figure 1: Total US sales and fan chart forecast of chips, salsa, and dips, at current prices, 2009-19
Potato chips dominate sales, but tortilla chips grew more
Figure 2: Total US retail sales of chips, salsa, and dips, by segment, at current prices (in millions), 2012
and 2014
Key players
Figure 3: MULO sales of chips, salsa, and dips, by rolling 52 weeks 2014
The consumer
High household penetration indicates how the category benefits from the snacking trend
Figure 4: Chips, salsa, and dips purchases – Any purchase, October 2014
Natural ingredients more important than low/no claims
Figure 5: Important nutritional attributes for chips and/or dips purchases, October 2014
Health claims are important to a majority of buyers; opportunity in improved packaging
Figure 6: Chip and dip buyer behavior and opinions – Any agree, October 2014
What we think
ISSUES AND INSIGHTS
Can health claims be leveraged as much as flavor?
Issues
Insight: Focus on unprocessed rather than low/no/reduced claims
How will new styles and formats impact the category?
Issues
Insight: New dip/chip styles offer opportunity for sales growth
What new flavors are likely to take hold in the category?
Issues
Insight: Spicy apt to continue trending as consumers look for ethnic flavors
TREND APPLICATION
Trend: Sense of the Intense
Trend: Life Hacking
Trend: Extend My Brand
MARKET SIZE AND FORECAST
Key points
Sales and forecast of chips, salsa, and dips
Figure 7: Total US retail sales and forecast of chips, salsa, and dips, at current prices, 2009-19
Figure 8: Total US retail sales and forecast of chips, salsa, and dips, at inflation-adjusted prices, 2009-19
Fan chart forecast
Figure 9: Total US sales and fan chart forecast of chips, salsa, and dips, at current prices, 2009-19
Fan chart methodology
MARKET DRIVERS
Key points
Snacking trend benefits the category
Figure 10: Reasons for buying chips and/or dips, October 2014
Health considerations could hamper sales
Millennials represent opportunity for marketers
Figure 11: Population. by generation, 2009-19
Hispanics more likely to buy than other racial/ethnic groups
Figure 12: Population. by race and Hispanic origin, 2009-19
Households with kids more likely to buy
Figure 13: Households, by presence of own children, 2003-13
COMPETITIVE CONTEXT
Snack foods, especially healthier options, vie for share of consumer spending
SEGMENT PERFORMANCE
Key points
Tortilla chips grow faster than potato chips
Sales of chips, salsa, and dips, by segment
Figure 14: Total US retail sales of chips, salsa, and dips, by segment, at current prices, 2012 and 2014
Sales and forecast of potato chips
Figure 15: Total US retail sales and forecast of potato chips, at current prices, 2009-19
Sales and forecast of tortilla chips
Figure 16: Total US retail sales and forecast of tortilla chips, at current prices, 2009-19
Sales and forecast of salsa
Figure 17: Total US retail sales and forecast of salsa, at current prices, 2009-19
Sales and forecast of dips
Figure 18: Total US retail sales and forecast of dips, at current prices, 2009-19
RETAIL CHANNELS
Key points
Supermarkets lead but drug stores grow fastest
Sales of chips, salsa, and dips, by channel
Figure 19: Total US retail sales of chips, salsa, and dips, by channel, 2012 and 2014
Supermarkets face increasing competition from drug and other channels
Figure 20: US supermarket sales of chips, salsa, and dips, 2009-14
Chips/dips leverage drug stores’ fresh food, grab-and-go offerings
Figure 21: US drug store sales of chips, salsa, and dips, 2009-14
Mass merchandisers offer value, convenience stores draw snackers
Figure 22: US other channel sales of chips, salsa, and dips, 2009-14
LEADING COMPANIES
Key points
PepsiCo dominates with nearly 60% share
MULO sales of chips, salsa, and dips
Figure 23: MULO sales of chips, salsa, and dips, by rolling 52 weeks 2013 and 2014
MULO sales of tortilla chips
Figure 24: Doritos Jacked television ad, 2014
Figure 25: MULO sales of tortilla chips, 2013 and 2014
MULO sales of potato chips
Figure 26: Lay’s Do Us A Flavor television ad, 2014
Figure 27: Pringles television ad, 2014
Figure 28: MULO sales of potato chips, 2013 and 2014
MULO sales of salsa
Figure 29: MULO sales of salsa, 2013 and 2014
MULO sales of dips
Figure 30: MULO sales of dips, 2013 and 2014
INNOVATIONS AND INNOVATORS
Potato chip product health claims increase
Figure 31: Top 10 potato chip claims, by percentage of total claims, 2010-14 (YTD December 2014)
New styles answer demand for unique flavors
Healthy claims increase for tortilla chip brands
Figure 32: Top 10 tortilla chip claims, by percentage of total claims, 2010-14 (YTD December 2014)
Unique styles and flavors expected to appeal to more buyers
Leading salsa claims point to demand for healthy foods
Figure 33: Top 10 salsa claims, by percentage of total claims, 2010-14 (YTD December 2014)
Spicy flavors heat up salsa segment
All-natural, low/no/reduced fat dip product claims increase
Figure 34: Top 10 dip claims, by percentage of total claims, 2010-14 (YTD December 2014)
Yogurt dips add variety to the segment
SOCIAL MEDIA – CHIPS, SALSA, AND DIPS
Key points
Market overview
Key social media metrics
Figure 35: Key social media metrics, December 2014
Brand usage and awareness
Figure 36: Brand usage and awareness for select chip, salsa, and dip brands, October 2014
Interactions with chip, salsa, and dip brands
Figure 37: Levels of interaction for select chips, salsa, and dips, October 2014
Leading online campaigns
New products
Moving to digital
What we think
Online conversations
Figure 38: Percentage of online mentions for Lay’s “Do Us A Flavor” entries, Dec. 8, 2013-Dec. 7, 2014
Figure 39: Online mentions for select chip, salsa, and dip brands, by week, Dec. 8, 2013-Dec. 7, 2014
Where are people talking about chip, salsa, and dip brands?
Figure 40: Online mentions for select chip, salsa, and dip brands, by page type, Dec. 8, 2013-Dec. 7, 2014
What are people talking about?
Figure 41: Topics of conversation for select chip, salsa, and dip brands, Dec. 8, 2013-Dec. 7, 2014
THE CONSUMER – CHIPS, SALSA, AND DIPS PURCHASES
Key points
High penetration indicative of snacking trend
Figure 42: Chips, salsa, and dips purchases, October 2014
Millennial snacking behavior means opportunity for marketers
Figure 43: Chips, salsa, and dips purchases – Any purchase, by generations, October 2014
Presence of children translates to higher likelihood to buy chips/dips
Figure 44: Chips, salsa, and dips purchases – Any purchase, by presence of children in household,
October 2014
THE CONSUMER – FACTORS INFLUENCING MORE CHIPS AND DIPS PURCHASES
Key points
Promotions, new flavors are influential to purchases
Millennials apt to go for new flavors
Figure 45: Factors influencing more chips and dips purchases, by generations, October 2014
New flavors also resonate with households with kids
Figure 46: Factors influencing more chips and dips purchases, by presence of children in household,
October 2014
THE CONSUMER – IMPORTANT NUTRITIONAL CLAIMS FOR CHIPS AND/OR DIPS
PURCHASES
Key points
All-natural claims can boost appeal
Millennials go organic; Swing Generation more concerned about fat, sodium, cholesterol
Figure 47: Important nutritional claims for chips and/or dips purchases, by generations, October 2014
THE CONSUMER – MOTIVATIONS FOR BUYING CHIPS AND/OR DIPS
Key points
Emotional and functional motivations drive purchases
Figure 48: Motivations for buying chips and/or dips, by generations, October 2014
New flavors, on-the-go snacking drive purchases for households with kids
Figure 49: Motivations for buying chips and/or dips, by presence of children in household, October 2014
THE CONSUMER – IDEAL HEALTHY CHIPS/DIPS
Key points
Salsa and hummus cited by a quarter of buyers as healthy snacks
Figure 50: Ideal healthy chips/dips, October 2014
THE CONSUMER – CHIP AND DIP BUYER BEHAVIOR AND OPINIONS
Key points
Healthier chips/dips, improved packaging desired by those who snack most
Figure 51: Chip and dip buyer behavior and opinions, October 2014
Figure 52: Chip and dip buyer behavior and opinions – Any agree, by generations, October 2014
Figure 53: Chip and dip buyer behavior and opinions – Any agree, by presence of children in household,
October 2014
THE CONSUMER – RACE AND HISPANIC ORIGIN
Key points
Hispanics represent key group for chips/dips marketers
Figure 54: Chips, salsa, and dips purchases – Any purchase, by race/Hispanic origin, October 2014
New flavors appeal to Blacks, Asians, Hispanics most
Figure 55: Factors influencing more chips and dips purchases, by race/Hispanic origin, October 2014
Figure 56: Important nutritional claims for chips and/or dips purchases, by race/Hispanic origin, October
2014
Figure 57: Reasons for buying chips and/or dips, by race/Hispanic origin, October 2014
Figure 58: Respondents' idea of a good meal or snack regardless of nutrition, by race/Hispanic origin,
October 2014
Specific chip/dip health claims likely to appeal to Hispanics
Figure 59: Chip and dip buyer behavior and opinions – Any agree, by race/Hispanic origin, October 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
The consumer – Chips, salsa, and dips purchases
Figure 60: Chips, salsa, and dips purchases – Any purchase, by gender, October 2014
Figure 61: Chips, salsa, and dips purchases – Any purchase, by age, October 2014
Figure 62: Chips, salsa, and dips purchases – Any purchase, by household income, October 2014
Figure 63: Chips, salsa, and dips purchases – Any purchase, by chip and dip buyer behavior and opinions
– any agree, October 2014
Figure 64: Chips, salsa, and dips purchases – Any purchase, by important nutritional claims for chips
and/or dips purchases, October 2014
The consumer – Factors influencing more chips and dips purchases
Figure 65: Factors influencing more chips and dips purchases, by gender, October 2014
Figure 66: Factors influencing more chips and dips purchases, by age, October 2014
Figure 67: Factors influencing more chips and dips purchases, by household income, October 2014
The consumer – Important nutritional claims for chips and/or dips purchases
Figure 68: Important nutritional claims for chips and/or dips purchases, by gender, October 2014
Figure 69: Important nutritional claims for chips and/or dips purchases, by age, October 2014
Figure 70: Important nutritional claims for chips and/or dips purchases, by household income, October
2014
Figure 71: Important nutritional claims for chips and/or dips purchases, by presence of children in
household, October 2014
The consumer – Motivations for buying chips and/or dips
Figure 72: Motivations for buying chips and/or dips, by gender, October 2014
Figure 73: Motivations for buying chips and/or dips, by age, October 2014
Figure 74: Motivations for buying chips and/or dips, by household income, October 2014
The consumer – Ideal healthy chips/dips
Figure 75: Ideal healthy chips/dips, by gender, October 2014
Figure 76: Ideal healthy chips/dips, by age, October 2014
Figure 77: Ideal healthy chips/dips, by household income, October 2014
Figure 78: ideal healthy chips/dips, by generations, October 2014
Figure 79: Ideal healthy chips/dips, by presence of children in household, October 2014
The consumer – Chip and dip buyer behavior and opinions
Figure 80: Chip and dip buyer behavior and opinion, October 2014
Figure 81: Chip and dip buyer behavior and opinions – Any agree, by gender, October 2014
Figure 82: Chip and dip buyer behavior and opinions – Any agree, by age, October 2014
Figure 83: Chip and dip buyer behavior and opinions – Any agree, by household income, October 2014
APPENDIX – SOCIAL MEDIA
Brand usage or awareness
Figure 84: Brand usage or awareness, October 2014
Figure 85: Lay’s usage or awareness, by demographics, October 2014
Figure 86: Fritos usage or awareness, by demographics, October 2014
Figure 87: Ruffles usage or awareness, by demographics, October 2014
Figure 88: Old El Paso usage or awareness, by demographics, October 2014
Figure 89: Tostitos usage or awareness, by demographics, October 2014
Figure 90: Ortega usage or awareness, by demographics, October 2014
Activities done
Figure 91: Activities done, October 2014
Figure 92: Lay’s – Activities done – I have looked up/talked about this brand online on social media, by
demographics, October 2014
Figure 93: Lay’s – Activities done – I have contacted/interacted with the brand online on social media to,
by demographics, October 2014
Figure 94: Lay’s – Activities done – I follow/like the brand on social media because, by demographics,
October 2014
Figure 95: Lay’s – Activities done – I have researched the brand on social media to, by demographics,
October 2014
Figure 96: Fritos – Activities done – I have looked up/talked about this brand online on social media, by
demographics, October 2014
Figure 97: Fritos – Activities done – I have contacted/interacted with the brand online on social media to,
by demographics, October 2014
Figure 98: Fritos – Activities done – I follow/like the brand on social media because, by demographics,
October 2014
Figure 99: Fritos – Activities done – I have researched the brand on social media to, by demographics,
October 2014
Figure 100: Ruffles – Activities done – I have looked up/talked about this brand online on social media, by
demographics, October 2014
Figure 101: Ruffles – Activities done – I have contacted/interacted with the brand online on social media
to, by demographics, October 2014
Figure 102: Ruffles – Activities done – I follow/like the brand on social media because, by demographics,
October 2014
Figure 103: Ruffles – Activities done – I have researched the brand on social media to, by demographics,
October 2014
Figure 104: Old El Paso – Activities done – I have looked up/talked about this brand online on social
media, by demographics, October 2014
Figure 105: Old El Paso – Activities done – I have contacted/interacted with the brand online on social
media to, by demographics, October 2014
Figure 106: Old El Paso – Activities done – I follow/like the brand on social media because, by
demographics, October 2014
Figure 107: Old El Paso – Activities done – I have researched the brand on social media to, by
demographics, October 2014
Figure 108: Tostitos – Activities done – I have looked up/talked about this brand online on social media, by
demographics, October 2014
Figure 109: Tostitos – Activities done – I have contacted/interacted with the brand online on social media
to, by demographics, October 2014
Figure 110: Tostitos – Activities done – I follow/like the brand on social media because, by demographics,
October 2014
Figure 111: Tostitos – Activities done – I have researched the brand on social media to, by demographics,
October 2014
Figure 112: Ortega – Activities done – I have looked up/talked about this brand online on social media, by
demographics, October 2014
Figure 113: Ortega – Activities done – I have contacted/interacted with the brand online on social media
to, by demographics, October 2014
Figure 114: Ortega – Activities done – I follow/like the brand on social media because, by demographics,
October 2014
Key social media metrics
Figure 115: Key social media metrics, De. 2014
Online conversations
Figure 116: Online mentions for select chip, salsa, and dip brands, by week, Dec. 8, 2013-Dec. 7, 2014
APPENDIX – TRADE ASSOCIATIONS
US METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Secondary Data Analysis
Qualitative Research
Further Analysis
Social Media Research
TRADE RESEARCH
STATISTICAL FORECASTING

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