Crisps and Snacks - UK - May 2007

Table of Contents

• Issues in the MarketKey themes
• Definitions
• Market in Brief
• Faltering sales, but some bright spots
• Concentrated market
• Healthier products
• Changing role for advertising
• Increased importance of adult snacks
• Internal Market Environment
• Key points:
• Obesity -- a weight on everyone' s mind
  • Figure 1: Projected prevalence of obesity in children and adults, by gender, 2003 and 2010
• The Jamie Oliver effect
• Media focus on diets and obesity
• Consumers seeking healthier alternatives
  • Figure 2: Agreement with selected lifestyle statements, 2002-06
  • Figure 3: Agreement with selected lifestyle statements -- 11-14-year-olds, 2002-06
• Concern over fats
• Sustainable snacks
• Broader Market Environment
• Key points:
• 5 A DAY
• School Food Trust promotes healthier lunches
• Restrictions on advertising to children
  • Figure 4: Agreement with the statement ' I like to buy things I' ve seen in the adverts on TV' -- 7-10s and 11-14s, 2003-06
• Food labelling
• Ageing population
  • Figure 5: Trends and projections in the UK population, by age group, 2002, 2007 and 2012
• Consumer expenditure
  • Figure 6: PDI and consumer expenditure, at constant 2002 prices, 2002-12
• Other factors
• Healthy School Status
• Competitive Context
• Key points:
• Traditional snack markets face challenge
  • Figure 7: UK retail value sales of crisps and snacks, biscuis and chocolate, 2002-07
• Strong growth in healthy snacks
  • Figure 8: UK retail volume and value sales of crisps and snacks v nuts, seeds etc and fruit and vegetables, 2002-07
• The changing face of snacks
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Value and Forecast
• Key points:
• Signs of recovery in 2006
  • Figure 14: UK retail volume and value sales of crisps and snacks, 2002-07
  • Figure 15: UK retail value and volume sales of crisps and snacks, by sector, 2002-06
• The occasional treat
• Future growth potential
  • Figure 16: Forecast of the crisps and snacks market, by value, 2007-12
  • Figure 17: Forecast of the crisps and snacks market, by volume, 2007-12
• Economic prospects
• Factors used in the forecast
• Segment Performance
• Key points:
• Tentative recovery in crisps
  • Figure 18: UK retail volume and value sales of crisps and snacks, 2002-07
• Snacks remain in the doldrums
• Premium sector leads the way
  • Figure 19: UK retail value sales of crisps, by type, 2002-06
• From diet to mainstream
  • Figure 20: UK retail sales of lower-fat potato snacks*, 2002-07
• Tradition is flavour of the month
  • Figure 21: UK retail value sales of standard/regular crisps, by flavour, 2004 and 2006
• Greater attention on adult snacks
  • Figure 22: UK retail sales of savoury snacks in the UK, by type, 2002-06
• Market Share
• Key points:
• Concentrated market
  • Figure 23: Manufacturer shares in the UK crisps and snacks market, by value, 2004 and 2006
• Indulgence v health
  • Figure 24: Company shares in the UK crisps market, by value, 2004 and 2006
• Slow growth in snacks
  • Figure 25: Manufacturer shares in the UK snacks market, by value, 2004 and 2006
• Own-label remains in the shadows
• Companies and Products
• Key points:
• Major players
• Walkers
• Product range
• Marketing positioning
• UBUK
• Product range
• Marketing positioning
• Procter & Gamble
• Product range
• Marketing positioning
• Tayto/Golden Wonder
• Premium specialists
• Kettle Chips
• Real Crisps
• Tyrrells
• Burts Potato Chips
• Duchy Originals
• Smaller brands/own-label suppliers
• Seabrook
• Red Mill
• Kolak Snack Foods
• Future trends
• Brand Communication
• Key points:
• Declining impact of TV
  • Figure 35: Main monitored media advertising expenditure on crisps and snacks, by medium, January 2003-April 2007
• Advertising concentrated in few hands
  • Figure 36: Main monitored media advertising expenditure on crisps and snacks, by manufacturer and retailers, 2002-07*
• Walkers retains leading spot
• Pringles
• KP Foods
• Advertising to children
• Channels to Market
• Key points:
• Grocery outlets continue to dominate
  • Figure 37: UK retail sales of crisps and snacks in the UK, by type of outlet, 2002-06
• Importance of smaller outlets for impulse snacks
  • Figure 38: UK retail sales of crisps and snacks in the UK, by type of outlet and product, 2006
• Smaller manufacturers seek select distribution
• The Consumer -- Usage
• Crisps and snacks becoming an occasional treat
  • Figure 39: Consumption of potato crisps and potato snacks in the last 12 months, 2002-06
• Consumption patterns
• Sharper fall in snacks
  • Figure 40: Consumption of other savoury snacks in the last 12 months, 2002-06
• Consumption patterns
• Low-fat crisps losing out to lower-fat
  • Figure 41: Types of crisps eaten, 2006
• Branded products lead the way
  • Figure 42: Consumption of branded and supermarket own-label potato crisps/snacks, 2002-06
• A nation of chocoholics
  • Figure 43: Consumption of other snack foods in the last 12 months, 2002-06
• Continued high penetration amongst children
  • Figure 44: Top snacks/nibbles eaten between meals -- 7-10-year-olds, 2006
• Consumer -- Attitudes and Motivations
• Products bought
  • Figure 45: Crisps or snacks consumed in the last six months, December 2006
• Importance of family and status
• Everyone has their preferences
  • Figure 46: Consumer crisp and snack preferences, by socio-economic group, December 2006
• Regional favourites
• Snack appeal
• Adult snacks increase profile
• Continued impact of pester power
• The non-snackers
  • Figure 47: Profile of those who never eat crisps or snacks, by gender, age, socio-economic group, lifestage, presence of children and ACORN categories, December 2006
• Healthier snacking
  • Figure 48: Top 12 items eaten as snacks, December 2006
• Snacking profiles
  • Figure 49: Profile of snacking consumers, by gender, age, socio-economic group, region and ACORN categories, December 2006
• From sweet to savoury
• Men remain loyal snackers
  • Figure 41: Profile of crisps and other wheat products and meat based products consumers, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commerical TV viewing, supermarket usage, household size, and terminal education age, December 2006
• Attitudes towards snacks and snacking
  • Figure 50: Attitudes to crisps and snacks, December 2006
• Branded crisps under the spotlight
• Importance of treats
• Influence of entertaining
• Importance of advertising
• The role of children
• Impulse purchasing
• Appendix
• Consumer research
• ACORN
• Advertising data
• Abbreviations
• The Consumer -- Usage
  • Figure 55: Consumption of potato crisps and potato snacks in the last 12 months -- usage definition, 2002-06
  • Figure 56: Consumption of other savoury snacks in the last 12 months -- usage definition, 2002-06
  • Figure 57: Consumption of potato crisps and potato snacks in the last 12 months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN categories, technology usage, household size and car usage, 2006
  • Figure 58: Consumption of other savoury snacks in the last 12 months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN categories, technology usage, household size and car usage, 2006
• The Consumer -- Attitudes and Motivations
  • Figure 59: Crisps or snacks consumed in the last six months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
  • Figure 60: Crisps or snacks consummed in the last six months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
  • Figure 61: Crisps or snacks consummed in the last six months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
  • Figure 62: Items eaten as a snack, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
  • Figure 63: Items eaten as a snack, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
  • Figure 64: Items eaten as a snack, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
  • Figure 65: Profile of snack consumption, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
  • Figure 57: Profile of crisps and other wheat products and meat based products consumers, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commerical TV viewing, supermarket usage, household size and terminal education age, December 2006
  • Figure 66: Attitudes to crisps and snacks, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, December 2006
  • Figure 67: Attitudes to crisps and snacks, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size and terminal education age, December 2006
  • Figure 68: Cross-analysis of crisps and snacks consumed and occasions when they are eaten, December 2006 -- Part 1
  • Figure 69: Cross-analysis of crisps and snacks consumed and occasions when they are eaten, December 2006 -- Part 2
  • Figure 70: Cross-analysis of items eaten as a snack and occasions when crisps and snacks are eaten, December 2006 -- Part 1
  • Figure 71: Cross-analysis of items eaten as a snack and occasions when crisps and snacks are eaten, December 2006 -- Part 2
• Further analysis
  • Figure 72: Repertoire of types of crisps and snacks eaten, December 2006
  • Figure 73: Repertoire of types of crisps and snacks, by demographics (row %)gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN categories, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage and household size, December 2006
  • Figure 74: Repertoire of types of crisps and snacks, by attitudes towards crisps and snacks, December 2006 (col %)
  • Figure 75: Repertoire of types of crisps and snacks, by all types of snacks, December 2006 (col %)
  • Figure 76: Typologies of attitudes towards crisps and snacks, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN categories, technology usage, daily newspaper readership, commercial TV viewing, supermarket usage and household size, December 2006
  • Figure 77: Typologies of attitudes towards crisps and snacks, by types of crisps and snacks, December 2006 (col %)
  • Figure 78: Typologies of attitudes towards crisps and snacks, by repertoire of types of crisps and snacks, December 2006
  • Figure 79: Typologies of attitudes towards crisps and snacks, by attitudes towards crisps and snacks, December 2006
  • Figure 80: Typologies of attitudes towards crisps and snacks, by all types of snacks, December 2006 (col %)
  • Figure 81: Consumption of crisps/savoury snacks -- 7-14-year-olds, 2002-06