It’s no secret that the UK loves a good biccie or two (and sometimes more), and for the first time ever the biscuit category has crashed through the £3bn barrier.
However, with new high fat, salt and sugar (HFSS) ban in full effect, brands that are not compliant with the requirements are scrambling to get back into the game with reformulations and/or new launches.
Meanwhile retailers – with the exemption of concessions and micro and small business – have been clearing products that score badly from shelf space at checkouts, gondola end displays and entrances to make way for healthier alternatives such as flapjacks and cereal bars.
Crunching the numbers
According to Kantar figures, the estimated value of on-the-go snacking is £2.5bn, and the performance of the cereal bar category is positive, up over £38m to £463m (NielsenIQ MAT to 12 Feb 2022 vs LY).
So why are we seeing such growth? The pandemic has been a major driving force in changing habits, which are aligning more towards plant-based and vegan lifestyles because of the perceived health benefits.
UK consumers are increasingly savvy and want snacking products with more than one benefit such as sustainability, evolved holistic health, flavours, local credentials, dietary needs etc (IRI April 2022). Better-for-you options need to have functionality, which ultimately doesn’t compromise on taste.
Brands that put health at the forefront of their product strategy are likely to enjoy a good slice of the snacking category pie. Take Nature’s Heart, it’s the UK’s fastest-growing healthy snacking brand in percentage terms in the last 52 weeks with 701% growth YOY which has been driven by its immune system snacking launches and non-HFSS Crunch range. Graze CEO Joanna Allen says the trend towards healthy snacking has continued to remain prominent, with the category growing 8.3% over the past year.
There are many factors that influence consumer purchasing decisions, and we haven’t even got to pricing but more on that in a moment.
The impact of global circumstances
We touched upon the pandemic and now as we move further into a post-COVID era, there’s now the cost-of-living crisis to contend with. The Grocer Snacking Supplement states hybrid working has helped the resurgence for food-on-the-go impulse buys. Meal deals and its snacking lines also work well for at-home convenience, with multipack offers and £1 price marked products being a way for brands and retailers to keep the interest going beyond a one-time purchase.
While consumers are making spending cuts, nearly 1-in-5 of UK consumers (18%) are prepared to spend more on plant based, better-for-you categories including snacking (IRI Infoscan, April 2022).
Looking at the growth of the category from an emotional perspective, research by Toluna/Harris Interactive and Bingham & Jones ponders the question ‘what are consumers doing to improve their mood or indulge?’ following world events over the last couple of years. 58% of consumers say they find a healthy snack appealing or very appealing as a daily treat, and about four in ten consumers claim they’re looking for products that are healthier, plant-based and more sustainable in nature. However, 39% admit that the current cost-of-living crisis is leading them to swap to cheaper brands – an important consideration for new product development plans.
Trends
P-P-Pick up a protein bar
The protein-based nutrition sub-segment accounts for 82% of the total value sales of the entire sports health and nutrition market. With 66% of shoppers actively looking for protein-heavy snacks, it’s key to make distinctions between performance, lifestyle and natural protein SKUs.
Snacking at home
Health is more important as a driver for snacking choice in the morning vs the afternoon – 37.5% of occasions vs 31.1% respectively (Kantar Feb 2022). Breakfast opens the door to more opportunities to capture the attention of hybrid workers who are looking for time-saving and convenient alternatives. Working from home has also seen set mealtimes falling to the backburner, with lunchtime providing a snacking occasion.
Sustainability
Consumers are looking closely at brands and will align themselves with the ones that have shared sustainability beliefs. Companies that are transparent about their eco-credentials, packaging, wastage, stance on climate change sourcing of ingredients and policies etc they have will fair well in the market as long as authenticity flows through the entire business. It’s a challenge many will try and sink their teeth into but only time will tell who the winners are.
