Snacking on the Go - UK - April 2008

Table of Contents

• Issues in the Market
• Key themes
• Definition
• Abbreviations
• Market in Brief
• Snacking on the go -- a dynamic sector
• Changing attitudes contribute to growth
• Manufacturers respond to demand for healthier products
• Strong advertising support for leading brands
• Potential for significant growth in the future
• Internal Market Environment
• Key points
• Healthy eating
  • Figure 1: Agreement with selected lifestyle statements relating to health and diet, 2003-07
• Obesity is rising
  • Figure 2: Current and projected levels of obesity among UK children, by age and gender, 2003 and 2010
• Are consumers in denial?
  • Figure 3: Agreement with selected lifestyle statements, 2003-07
• The snacking impulse
  • Figure 4: Agreement with selected lifestyle statements, all adults and those who agree with the statements ' I often eat snacks while on the move rather than eating a proper meal' , ' I often eat between meals, I keep snacking' and ' I don' t normally eat between meals' , 2007
• Children love to snack
  • Figure 5: Children (7-10-year-olds) who regularly snack/nibble between meals, 2006 and 2007
  • Figure 6: Adolescents (11-16-year-olds) who regularly snack/nibble between meals, 2003-07
  • Figure 7: What youngsters (aged 7-10 and 11-16) snack/nibble on between meals, 2007
• Vending has increased availability
  • Figure 8: Sales of food and drink by vending machines, 2003-07
• Ethical snacking
  • Figure 9: Agreement with selected lifestyle statements relating to ethical purchasing, 2003-07
• Concern about carbon footprint
• Broader Market Environment
• Key points
• A nation on the move
  • Figure 10: Distance travelled by UK consumers, 1975/76-2006
• ...but happy to take a break
• Value of onboard catering has declined
• Workers under pressure
  • Figure 11: Working population, by gender, 2003-13Figure 12: Comparison of working hours, 2004
• Student snackers
  • Figure 13: Number of students in HEIs, 2000/01-2005/06
• Personal disposable income continues to rise
  • Figure 14: Trends in personal disposable income (PDI) and consumer expenditure, 2003-13
• Children have more to spend too
  • Figure 15: Total amount of money received in a week, 7-14-year-olds, 2003-07
  • Figure 16: Total amount of money received in a month, 15-16-year-olds, 2003-07
• Changes in age structure favour snacking
  • Figure 17: Trends in the age structure of the UK population, by gender, 2003-13
• Average household size set to fall
  • Figure 18: UK Household sizes, 2003-13
• Demographics offer opportunities for premiumisation
  • Figure 19: Forecast adult population trends, by socio-economic group, 2003-13
• ' 5-a-day'
• Competitive Context
• Key points
• Takeaway...
  • Figure 20: Consumption of takeaway foods in the last 12 months, 2003-07
• ...or eat in
  • Figure 21: Frequency of eating in at fast-food restaurants in the last 12 months, 2003-07
  • Figure 22: Usage of coffee shops and sandwich bars in the last 12 months, 2003-07
• Snacking at home
• Competition for pocket money spend is keen
  • Figure 23: How money is spent, 7-10-year-olds, 2002-06
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Who' s Innovating?
• Key points
• Less is more
• Snacking gets naturally healthier
• ...and functional
• Aiming for 5-a-day
• Wider range of ingredients
• Permissible indulgence
• ... and for those who don' t need permission...
• Premiumisation
• Convenience
• Packaging shapes up
• Brand extension into on-the-go
• Future trends
• Market Size and Forecast
• Key points
• On-the-go snacking enjoys strong value growth
  • Figure 24: Estimated number of adult on-the-go snacking occasions, 2008
• Product sectors deliver a mixed performance
  • Figure 25: UK retail sales of selected snacking products, by category, by value, 2003-08
• Future trends
• Segment Performance
• Key points
• Cake bars return to growth
• Cereal bars driven by NPD
• Snack packs boost sales of dried fruit
• Impulse ice cream is weather dependent
• Sugar confectionery boosted by more natural ingredients
• Sweet biscuits adapt and survive
• Chocolate consumers trade up
• Crisps and snacks embrace healthy eating
• Brand Communication and Promotion
• Key points
• Adspend fluctuates
  • Figure 26: Advertising expenditure on selected snack companies, from 01-Jan-03 to 31-Dec-07
• TV dominates spend
  • Figure 27: Adversiting expenditure on selected snack companies, by media type, for calendar year 2007
• Advertising could have greater on-the-go focus
• Walkers aims for a more natural image
• McCoy' s targets men
• Crunchy Nut Commuters
• Adspend set to rise in 2008?
• Who Snacks When?
• Key points
• Snacking on the increase
  • Figure 28: Frequency of snacking on the go, 2006-08Under-24s are most frequent on-the-go snackers
• Snacking Preferences
• Key points
• Snacking gets healthier
  • Figure 29: Types of snacks eaten on the go most commonly, 2006-08
• Fresh fruit is increasingly popular
• Cheese -- small but dynamic
• Pasties and pies in decline
• Healthy vs hearty
• ...not forgetting indulgence
• Hydration is important too
• Dedicated snackers favour chocolate
  • Figure 30: Types of snacks eaten on the go most commonly, by frequency of snacking on the go, January 2008
• Why We Snack
• Key points
  • Figure 31: Attitudes towards snacking, 2006-08
• Who needs an excuse anyway?
• Travelling and work prompt AB snacking
• No time to sit down
• Snacking for entertainment
• Always hungry
• It' s not all junk
  • Figure 32: Attitudes towards snacking, by frequency of snacking on the go, January 2008
• Hunger and boredom are daily occurrence for the under 25s
• Monday-Friday snackers
• Travelling tends to be less frequent
• Chocolate and crisps alleviate boredom
  • Figure 33: Attitudes towards snacking, by types of snacks eaten on the go most commonly, January 2008
• Travellers and workers look for meal components
• Reluctant snackers go for healthier options
• ...while carbs keep the hunger pangs at bay
• Appendix: Who Snacks When?
• Frequency of snacking on the go, by detailed demographics
  • Figure 34: Frequency of snacking on the go, by detailed demographics, January 2008
• Appendix: Snacking Preferences
• Types of snacks eaten on the go most commonly, by detailed demographics
  • Figure 35: Types of snacks eaten on the go most commonly, by detailed demographics, January 2008
• Types of snacks eaten on the go most commonly, by detailed demographics
  • Figure 36: Types of snacks eaten on the go most commonly, by detailed demographics, January 2008
• Appendix: Why We Snack
• Attitudes towards snacking, by detailed demographics
  • Figure 37: Attitudes towards snacking, by detailed demographics, January 2008