Attacking Snacks Opportunities in a Growth Segment - NAMA
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Attacking Snacks Opportunities in a Growth Segment
About Technomic Only Technomic delivers a 360° view of the food industry. We impact growth and profitability for our clients by providing consumer-grounded vision and channel-relevant strategic insights. © 2019 Technomic, Inc. 2
Technomic is Part of Winsight Media Events © 2019 Technomic, Inc. 3
Objectives ●Provide situation analysis, outlook ●Assess customer dynamics ●Develop implications © 2019 Technomic, Inc. 4
What is Snacking? © 2019 Technomic, Inc. 5
Snack Definitions
Traditional snack definitions are on the decline
64%
By when it's consumed: nontraditional meal hours 55%
68%
44%
By item type: items traditionally sold as snacks 49%
42%
35%
By size: smaller portions 44%
31%
15%
By prep time: little prep needed 18% Overall
13%
18-34
8%
By purchase location 8% 35+
8%
7%
By price: inexpensive/cheaper than a meal 11%
6%
Base: 1,705 consumers (includes terminates)
Source: 2018 Snacking Occasion Consumer Trend Report
© 2019 Technomic, Inc. 6
Snack Definition
Shifts
61%
Has not changed 43%
70%
More younger than older Now includes 22%
consumers have broadened more types of food
33%
16%
their snack definitions
Now includes more packaged 11%
16%
items offered at retail locations 8%
10%
Now includes beverages 17%
7%
Now includes a wider 9%
14%
variety of beverages 7% Overall
18-34
Now includes foods/beverages 9%
consumed as meal 35+
12%
replacements 7%
Now includes more items 6%
offered at 10%
Base: 1,705 consumers (includes terminates)
Source: 2018 Snacking Occasion Consumer Trend Report restaurants/foodservice 4%
© 2019 Technomic, Inc. 7
Typical Eating
Behavior
Consumers increasingly replace meals with snacks as the
grazing trend continues
53%
2016 2018
43%
32%
27%
9% 10% 8%
4% 3% 4% 2% 3%
Three meals a Usually skip or Usually skip or Three meals a Three meals a Usually snack
day with a few replace one meal replace two day with many day with no instead of eating
snacks between per day with meals per day snacks between snacks full meals
meals snacks with snacks meals
Base: 1,500 consumers (2018 & 2016)
Source: 2018 Snacking Occasion Consumer Trend Report
© 2019 Technomic, Inc. 8
Snacks Per Day
Snacking between meals shows an upward trend since 2013
2.9 2.8
2.6 2.7 2.7
2.5 2.5 2.4 2.5 2.5 2.4
2.3
May '13 Feb. '14 June '14 May '15 Aug. '15 Jan. '16 June '16 Oct. '16 Dec. '16 June '17 Aug. '17 Jan. '18
Base: Approximately 2,000 consumers (varies by survey, includes terminates)
Source: 2018 Snacking Occasion Consumer Trend Report
© 2019 Technomic, Inc. 9
Snack Consumption 30%
Frequency say snacking between
meals is part of a healthy
diet
31% of 2016 2018
younger
consumers
38%
34%
23%23%
16%16%
6% 7% 8% 9%
5% 6% 4% 6%
4 or more 3 times 2 times Once a day 3-6 days 1-2 days Less often than
times per day per day per day per week per week once a week
Base: 1,705 (2018), 1,633 (2016) (includes terminates) & 808 (callout)
Source: 2018 Snacking Occasion Consumer Trend Report
© 2019 Technomic, Inc. 10Consumption by
Daypart
75% 73% 76%
50%
42% 39%
44% 30% 32%
26% 27% 25%
at least somewhat agree that 24%
they eat snacks as a second
breakfast once they get to work
or school
Morning Afternoon Evening Late night
Overall 18-34 35+
Base: 1,705 (2018), 1,633 (2016) (includes terminates) & 808 (callout)
Source: 2018 Snacking Occasion Consumer Trend Report
© 2019 Technomic, Inc. 11Leading Purchase
Drivers
Top 3 words that
1. Flavor or taste consumers say best
(81%) describe the foods they
2. Freshness (63%) crave:
3. It will satisfy my hunger ● Comfort food
(63%) ● Fresh
● Savory
Base: Approximately 790 consumers
Source: 2018 Snacking Occasion Consumer Trend Report
© 2019 Technomic, Inc. 12Snacking in the
Convenience Channel
© 2019 Technomic, Inc. 13Hyperchoice Impacts
Snack Selection Supermarket
Foodservice
Convenience
stores
New-age
vending Pantry
foodservice
Food halls Dollar stores
Micromarkets Food trucks QSR
© 2019 Technomic, Inc. 14Vending Still a
Primary Source for
Snacks
Sourced a Snack in the Among 18-34 year olds
Last 3 Months
Vending 25% 41%
Micromarkets 12% 22%
Office Coffee/Pantry 14% 23%
© 2019 Technomic, Inc. 15Among those who use
vending machines
Purchase
once per 48%
week+
© 2019 Technomic, Inc. 16Top Items in
Vending Still the “go-to”
channel for many
traditional
Item % That “Typically” Buy… snack foods
Cold Drinks 78%
Chips 76%
Candy 56%
© 2019 Technomic, Inc. 17Micro Markets Increasingly Used for Snacks Self-serve, self-pay grab-and-go ● Business & industry ● College & university ● Healthcare © 2019 Technomic, Inc. 18
Among those who use
micromarkets
Purchase
once per 82%
week+
© 2019 Technomic, Inc. 19Top Items in Micro-
Markets Purchase behavior
includes many
additional
Item % That “Typically” Buy… “non-traditional”
snacking items
Cold Drinks 53%
Chips 43%
Baked Goods 38%
© 2019 Technomic, Inc. 2054% 42%
Micromarket Micromarket
consumers would consumers would
choose fast-food choose full-service
restaurants instead restaurants instead
© 2019 Technomic, Inc. 21Pantry
Growth
Exploding
An employee benefit
● Corporate settings,
presented as a perk
● Food and beverages are
typically free
● A fixture at companies such
as Amazon, Apple and
Google
© 2019 Technomic, Inc. 22Top Items in
Pantries But Also
Overindexes on
Sandwiches, Other
Item % That “Typically” Buy… Types of Snacks and
Baked Goods
Cold Drinks 50%
Chips 40%
Baked Goods 33%
© 2019 Technomic, Inc. 23Among those who use pantries
Patronize
once per
week+
82%
© 2019 Technomic, Inc. 24Trends to Watch © 2019 Technomic, Inc. 25
Consumption Compared to two years ago, I am snacking…
Shifts 34%
Health ...on healthier food 36%
33%
15%
...on healthier beverages 19%
14%
Those with changing habits are
choosing healthier snacks 7%
...on less healthful food 11%
6%
6%
...on less healthful beverages 10%
4%
Base: 1,500 consumers
Q: In which ways, if any, has your snacking behavior
changed in the last two years? Select all. (Healthy/less Overall 18-34 35+
healthy options were mutually exclusive)
© 2019 Technomic, Inc. 26Vending Machines
New-age healthy vending machines are likely to pull in
younger consumers
29%
I would purchase snacks
from vending machines 48%
offering healthful items
21% 34% of women
20%
Vending machines are
30%
a good option for snacks
15%
Base: Approximately 805 consumers
Q: Please indicate how much you agree or disagree
with the following statements. Agree & agree Overall 18-34 35+
completely.
© 2019 Technomic, Inc. 27Better for You Superfoods and healthy snack boxes ● Nature Box ● Graze ● Urthbox © 2019 Technomic, Inc. 28
Natural
Enhancements
67% of consumers
would be more likely to buy
food or beverage having
functional benefits
32% would
pay more for it
© 2019 Technomic, Inc. 29Natural Enhancements PHYSICAL EMOTIONAL MENTAL Beauty/Hair, Skin + Nails Stress Relief/Anti-Anxiety Cognitive Function/Memory ● Collagen ● Karkade ● Turmeric ● Maracuja ● Acerola ● Cannabis ● Goldenberry ● Lotus ● Nutritional Yeast ● Cactus/Nopal © 2019 Technomic, Inc. 30
Vegan Vending ● 2BU vending
● Füd Revolution
Serving up the plant-based trend
● Green Rendez-vous
© 2019 Technomic, Inc. 31Clean Labels & Free Foods The “new” healthy ● Creates buzz ● Millennial magnet ● “Open-air” restaurant format ● Farmer’s Fridge, Chicago ● $30M investment to expand © 2019 Technomic, Inc. 32
Protein-Enriched
Snacks
52% of consumers
find high-protein snacks
appealing
● Nuts and seeds
● New protein sources
● Great grains
● Faux meat
● Plant-based everything
© 2019 Technomic, Inc. 33Cannabis Craze 9.0% increase of cannabis on menus 171% increase of online posts about CBD over two years 72% would visit a restaurant concept that incorporates marijuana in its food Base: Q3 2017-Q3 2018; 572 (Consumers in states where legalization of recreational marijuana/cannabis products is somewhat likely to occur in the next two to three years) Source: Infegy; Technomic Ignite menu data; The Marijuana Effect Multi © 2019 Technomic, Inc. 34
Conclusions and Final
Thoughts
© 2019 Technomic, Inc. 35Final Thoughts We are witnessing the battle for snacking convenience ● Amazon Go ● Tap-and-go payments ● App-enabled everything © 2019 Technomic, Inc. 36
Takeaways
1. Snacking is still growing but consumer habits, behavior undergoing
major shifts
2. Indulgence hasn’t disappeared, but other factors now driving sales
3. Taste/flavor should be top of mind
4. Stay atop regulations, legislation
5. Trends likely to start in the snack mealpart
© 2019 Technomic, Inc. 37Questions?
David Henkes
Senior Principal
dhenkes@technomic.com
@davidhenkes
312-876-0004 | foodinfo@technomic.com | technomic.com
© 2019 Technomic, Inc. 38You can also read
