Salty Snacks - US - August 2009

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 3: FDMx sales and forecast of salty snacks, at current prices, 2004-14
  • Figure 4: 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 5: Total U.S. sales and forecast of select snack foods at current prices, 2003-08
  • Figure 6: 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 7: 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 8: FDMx sales and forecast of potato chips, at current prices, 2004-14
  • Figure 9: 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 10: FDMx sales and forecast of tortilla chips, at current prices, 2004-14
  • Figure 11: 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 12: FDMx sales and forecast of snack nuts and seeds, at current prices, 2004-14
  • Figure 13: 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 14: FDMx sales and forecast of popcorn, at current prices, 2004-14
  • Figure 15: 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 16: FDMx sales and forecast of pretzels, at current prices, 2004-14
  • Figure 17: 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 18: FDMx sales and forecast of cheese snacks, at current prices, 2004-14
  • Figure 19: 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 20: FDMx sales and forecast of corn snacks, at current prices, 2004-14
  • Figure 21: 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 22: FDMx sales and forecast of other salty snacks, at current prices, 2004-14
  • Figure 23: 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 24: 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 25: Sales of salty snacks at supermarkets, at current prices, 2004-09
  • Figure 26: Sales of salty snacks at supermarkets, at inflation-adjusted prices, 2004-09
• Market Drivers
• Brown-bagging trend boon for salty snacks
  • Figure 27: Change in eating and cooking habits as a result of the current economic climate, by gender, May 2009
• Healthy eating trend has legs
  • Figure 28: 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 29: U.S. population of adults aged 18 and over, by age group, 2003-13
  • Figure 30: 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 31: 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 32: 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 33: 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 34: 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 35: FDMx brand sales of popcorn in the U.S., 2008 and 2009
• Brand Share--Pretzels
• Key points
• Private label outperforms leading brands
  • Figure 36: 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 37: 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 38: 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 39: 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 40: Number of new salty snack introductions in the U.S, 2004-09
• Top 20 product claims, 2007-09
  • Figure 41: 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 42: SunChips television ad, 2009
  • Figure 43: Sun Chips Print ad, 2009
  • Figure 44: Smartfood television ad, 2009
• Lay' s
  • Figure 45: Lay' s television ad, 2009
• Pringles
  • Figure 46: Pringles Super Stack television ad, 2009
• Cheetos
  • Figure 47: Giant Cheetos television ad, 2009
• Orville Redenbacher' s
  • Figure 48: Orville Redenbacher' s popcorn television ad, 2009
• Salty Snack Usage and Frequency
• Key points
• Personal usage of salty snacks by age
  • Figure 49: Incidence of consumption of specific salty snacks, by age, June 2009
• Personal usage of salty snacks by race/Hispanic origin
  • Figure 50: 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 51: Incidence of consumption of specific salty snacks, by number of children in household, June 2009
  • Figure 52: Incidence of consumption of specific salty snacks, by presence of children in household, June 2009
• Usage frequency
  • Figure 53: Frequency of consumption of salty snacks, by age, June 2008
• Usage occasions
  • Figure 54: Incidence of consumption of salty snacks, by meal/day part, by age, June 2009
• Brand preferences
  • Figure 55: Top household brand preferences, selected salty snacks, October 2007-December 2008
• Salty snack usage trends
  • Figure 56: Household use of potato chips, popcorn products, corn/tortilla/cheese snacks, pretzels, and nuts, 2004-08
  • Figure 57: 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 58: 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 59: Incidence of eating salty snacks among teens, by gender and race/Hispanic origin, October 2007-December 2008
• Usage frequency--kids and teens
  • Figure 60: Teenagers' and children' s frequency of consumption of salty snacks, June 2008
• Usage occasions--kids and teens
  • Figure 61: Teenagers' and children' s consumption of salty snacks, by meal/day part, June 2008
• Parents' influence on kids' snacking
  • Figure 62: 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 63: Opinions about salty snacks, by gender, June 2009
• Interest in healthier snacks by age
  • Figure 64: Opinions about salty snacks, by age, June 2009
• Interest in healthier snacks by presence of children in household
  • Figure 65: Opinions about salty snacks, by presence of children in hh, June 2009
• Opinions about salty snacks and health by gender
  • Figure 66: Attitudes towards health and salty snacks, by gender, June 2009
• Opinions about salty snacks and health by age
  • Figure 67: Opinions about health issues and salty snacks, by age, June 2009
• Appendix: Other Useful Consumer Tables
• Household usage
  • Figure 89: Personal and household usage of salty snacks, June 2009
• Personal consumption of salty snacks by income
  • Figure 90: Consumption of specific salty snacks, by household income, June 2009
• Frequency of consuming salty snacks (per week)
  • Figure 91: Frequency of consumption of salty snacks, by race/Hispanic origin, June 2009
  • Figure 92: Frequency of consumption of salty snacks, by presence of children in household, June 2009
• Children' s salty snack brand preferences
  • Figure 93: Top brand preferences of children, selected salty snacks, October 2007-December 2008
• Teenagers' salty snack brand preferences
  • Figure 94: Top brand preferences of teenagers, selected salty snacks, October 2007-December 2008
• Opinions about salty snacks
  • Figure 95: Opinions about health issues and salty snacks, by race/Hispanic origin, June 2009
  • Figure 96: Opinions about salty snacks, by household income, June 2009
  • Figure 97: Consumption of salty snacks, by meal/day part, by race/Hispanic origin, June 2009
  • Figure 98: 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 99: Opinions about salty snacks, by race/Hispanic origin, June 2009
• Opinions about salty snacks and health by presence of children in household
  • Figure 100: Opinions about health issues and salty snacks, by presence of children in hh, June 2008
• Appendix: Trade Associations