The Future Of Snacking & Beverage Occasions

CHAPTER 1 EXECUTIVE SUMMARY

Hot topic

The future decoded

Snacking and beverage markets are growing

Increased snacking and beverage frequencies continue in Europe and the US

On-the-go snacking and drinking will become even more prevalent in the future

Main meal and snack occasions are becoming more interchangeable

Snacking and beverage consumption often occurs for emotive reasons

Consumers increasingly seek healthy snacks and beverages

Sensory and homing trends drive impulse needs

A need for individualism is affecting snacks and drinks needs

Occasion need variances characterize snack and beverage purchases

Action points

CHAPTER 2 THE FUTURE DECODED

Introduction

Important definitions and report coverage

TREND: snacking and beverage markets are growing

Time pressures and "grazing" are driving growth

The value of non-alcoholic drinks markets are also rising

Consumers snack consumption frequencies are growing

Snacking out-of-home is growing more than in-home snacking

Evening snacking is the most valuable occasion

Consumers beverage consumption frequencies are growing

TREND: snacking and beverage occasions increasingly occur on-the-go

On-the-go snacking and drinking occasions are increasing

On-the-go products are being consumed across a broader range of occasions

On-the-move consumption is also growing in Europe and the US

TREND: main meal and snack occasions are becoming more interchangeable

In-between meal occasions are increasingly filling light meals

Flexi-eating is an important driver of larger snacks in-between main meals

Core mealtimes increasingly resemble snack occasions

This trend is demonstrated by the growing number of light main meals

INSIGHT: snacking and beverage consumption often occurs for emotive reasons

Alleviating stress is an important motivation, especially for snacks

The struggle to achieve a work/life balance is evident among consumers

Consumers seek indulgence from comfort products in response to stress

Consumers are increasingly seeking therapeutic anti-stress products as treats

Boredom alleviation is also a highly relevant treating motivation

INSIGHT: consumers increasingly seek healthy snacks and beverages

Consumers health needs and behaviors are getting more diverse

Consumers increasingly demand health and convenience

The number of health-on-the-go occasions is increasing

Numerous barriers still exist preventing healthy and convenient purchases

Gender variances exist in health-related attitudes and behavior

INSIGHT: sensory and homing trends drive impulse needs

Consumers are seeking more intense consumption experiences

There is a greater desire to try new things and experience new sensations

Consumers are seeking more intense, bolder flavors

However, traditional flavors and formats are also highly relevant to innovation

The importance of offering the right flavor profile cant be underestimated

Knowledgeable consumers are demanding more authentic foods

Demand for authenticity means that specific details increasingly matter

Consumers are premiumizing their food and drink occasions

Consumers are increasingly indulging with premium food and drinks

There has been an in-filling of many snacking and beverage markets

Consumers seek indulgences that replicate on-trade experiences and quality

Health and wellness has a big impact on trading up tendencies

INSIGHT: individualism is affecting snacks and drinks needs

The notion of having it your way is becoming more important

INSIGHT: occasion specific need variances characterize snack and beverage purchases

Consumers food and drink needs vary considerably by daypart

Snacking is often time specific and varies by weekday

Snacking peaks during late morning, mid-afternoon and mid-to late evening

Days of the week also have a considerable impact

Snacks and drinks purchases are often combination orientated

Conclusions

Successful innovations must focus on two or more mega-trends

CHAPTER 3 ACTION POINTS

Introduction

Identify and target the key snacking/indulgence moments

Communicate occasion specificity in promotions

Consider developing a moments orientated campaign

Make products and communications synonymous with consumer emotions

Target consumers trading-up tendencies

Develop more premium and super-premium variants

Appropriate pricing is an important consideration

Align premium and super-premium variants as indulgent stress relievers

Target older consumers higher incomes and tendencies to premiumize

Ensure that quality is accurately depicted as a core brand value

Communicate superior taste above all else

Emphasize a products roots/heritage to create favorable perceptions

Develop artisanal, hand-crafted variants

Develop packaging formats which ooze sophistication and taste quality

Adopt experiential marketing to leverage sensory appeal

Bring brands to life through experiential campaigns

Use language and slogans to emphasize experiential qualities

Try to relate them to the specific consumption experience

Experiment with innovative flavor combinations

Again, promote how the flavors enhance the consumption experience

Make everyday staple foods more interesting

Make use of limited editions and seasonal flavors

Act upon consumers growing health concerns

Promote impulse snacking as a positive part of daily nutrition

Cut bad ingredients and focus on healthy production methods

Build trust by demonstrating a long-term commitment to health

Utilize event marketing, but demonstrate long-term commitment to campaigns

Alliances with health organizations can help send the right message

Help consumers make informed, healthier food and drink choices

Become an information resource for healthy living

Embrace interactive media in a more creative way

Develop recognizable and trustworthy labels

Extend brands with already established health credentials

Promote them as being brands/products that consumers can trust

Continue to recognize gender specific needs

Consider targeting males through their partners

Target healthy lifestyle venues for sampling

Promote healthy options as a cooler, more iconic alternative

Use tongue-in-cheek communications to maximixe impact

Target health and convenience by offering health on-the-go

Offer positive nutrition by incorporating functional ingredients

Developing products with beauty benefits exemplifies positive nutrition

Target the growing trend for light meals/larger snacks

Offer more filling hot food and drinks

Make substantial light meal fills available in convenience channels

Pursue opportunities in liquid nutrition

Target new occasions with packaging modifications and food and drink co-promotions

Adapt packaging formats to drive occasion growth and attract new users

Explore co-purchasing opportunities through co-promotions

CHAPTER 4 APPENDIX

Supplementary data

Definitions

Research methodology

References

Industry Sources

Government Sources

News Sources

How to contact experts in your industry

List of Tables

Table 1: Key characteristics differentiating impulse and planned food purchase occasions

Table 2: The value (total and per capita) and growth of snacking, by country, 2004-2009 (US$bn and €bn)

Table 3: The value (total and per capita) and growth of soft and hot drinks markets, by country, 1999-2009 (US$bn and €bn)

Table 4: The number of main meal and snacking occasions (billions) in Europe and the US, 2004-2009

Table 5: The number of daily per capita and yearly snacking occasions, by country, 2004-2009

Table 6: The number of annual in-home and out-of-home morning, afternoon and evening snack occasions, by country, 2004-2009

Table 7: The value and average number of daily European and US snack occasions, by occasion, per person, by country, 2004-2009

Table 8: The average number of daily and yearly non-alcoholic drinking occasions, by country, 2004-2009

Table 9: Number of annual and per person on-the-go eating occasions (billions), by country, 2003-08

Table 10: Number of annual and per person non-alcoholic on-the-go drinking occasions (billions), by country, 2003-08

Table 11: Total on-the-move food and drink market value by country ($ millions), 1999-2009

Table 12: Tesco capitalizing on the hot-drinks to-go opportunity

Table 13: The number and percentage of European and US in-between mealtime occasions that are light meals (billions), by daypart, 2003-2008

Table 14: Products targeting the interchangeability of meals and snacks

Table 15: The number and percentage of light breakfast, lunch and evening meal occasions (billions), by occasion and country, 2003-2008

Table 16: The number of European and US snack and hot & soft drink treating occasions consumed in response to stress, 2003-2008

Table 17: Examples of food and drink products offering therapeutic and relaxing indulgence

Table 18: The number of European and US snack and hot & soft drink treating occasions consumed in response to boredom, 2003-2008

Table 19: Insights based around the types of health and dietary benefits Europeans and Americans are seeking

Table 20: Per head and total European and US healthy on-the-go eating occasions (billions), 2004-2009

Table 21: Per head and total European and US healthy on-the-go drinking occasions (billions), 2004-2009

Table 22: Why women are important consumers to target for healthy snacking and beverage products

Table 23: Examples of snack and beverage products adding intensity and novelty to the consumption experience

Table 24: European and US consumer attitudes concerning new and exotic flavors in snacks and drinks, 2004

Table 25: Products which capitalize on the growing consumer demand for authentic consumption experiences

Table 26: Number of European and US premium food and drink occasions (millions), 1998-2008

Table 27: Examples of offering at-home indulgences that replicate on-trade quality

Table 28: Examples of snack and drink products and concepts targeting the individualism trend

Table 29: Examples of premium snacking and beverage variants

Table 30: Examples of leveraging country of origin or association branding

Table 31: Examples of effective descriptions that promote the indulgence properties of products

Table 32: Examples of performance boosts for active individuals

Table 33: Examples of innovative healthy snacking alternatives

Table 34: Utilize healthy and trusted brands to target new markets and occasions

Table 35: Examples or products with gender-specific positionings

Table 36: Southern Comfort Tea: adding fun and image credentials to a stodgy category

Table 37: European, Asian and North American examples of impulse products offering beauty benefits

Table 38: Global examples of innovative liquid nutrition offerings

Table 39: Examples of food and drinks manufacturers adapting packaging formats to maximize product usage

Table 40: Nutella: co-selling snacks and drinks together

Table 41: The size and growth of the overall confectionery market attributable to snacking occasions, by country (US$bn and €bn), 1999-2009

Table 42: The size and growth of European and US bakery markets attributable to snacking occasions (US$bn and €bn), 1999-2009

Table 43: The size and growth of the overall savory snack market attributable to snacking occasions, by country (US$bn and €bn), 1999-2009

Table 44: The size and growth of European and US dairy markets attributable to snacking (US$bn and €bn), 1999-2009

Table 45: The size and growth of the overall hot drink market, by country (US$bn and €bn), 1999-2009

Table 46: The size and growth of the overall soft drink market, by country (US$bn and €bn), 1999-2009

Table 47: Definitions used in this report

List of Figures

Figure 1: The increasing number of skipped meals is clearly evident and contributes to a growing demand for larger in-between meals

Figure 2: A synopsis of the convenience and health-related factors inhibiting health on-the-go occasions

Figure 3: Sensory and homing mega-trends have a big impact on consumers indulgent snacking and beverage behavior

Figure 4: The health and wellness trend has two key implications for consumers indulgence habits

Figure 5: Consumer motivations for snacking and beverage consumption vary by daypart

Figure 6: Percent distribution of US and European snacking occasions at different time intervals, 2004

Figure 7: A synopsis of consumer trends regarding future snacking and beverage occasions and how to target them

Figure 8: The different levels of experiential marketing can be used to capitalize on the sensory mega-trend