Shoppers are still looking for on-the-go treats that won’t break the bank.
By Elena Dimama
Value for money plays a crucial role in this volatile economic environment of squeezed incomes and could give the snacking category its moment to shine in the convenience sector.
Affordable treats
“The cost-of-living crisis will continue through 2023 and so offering great value for money is key,” Matt Smith, Marketing Director for Tayto Group, says. “In convenience, £1 PMPs are a must-stock.
“They have been the main driver of category growth – growing more than twice as fast as the market,” he explains, following a survey by the company on both retailers and consumers demonstrated how important the £1 price point is to both.
According to the research, 95% of consumers were concerned about the cost of groceries with almost 40% being very or extremely concerned.
“In the current climate, consumers are feeling the pinch and independent retailers need to showcase great value for money,” he says. “Instead of raising the headline price of our £1 PMPs, we’ve decided to stick to £1.”
Smith notes that in impulse snacks, value for money is “essential”, and having the right range of PMP snacks will drive sales. “Your entry price point must shout great value. Our 35p Fun Snacks range, which includes Tangy Toms, Spicy Bikers, Awesome Oinks and Strikers, is delivering 16% YoY growth.”
- Use secondary sitings and create an eye-catching display with the key on-the-go products people will be on the lookout for – including porridge pots and desserts.
- To attract those in a rush, create point-of-sale displays so that consumers won’t miss convenient options.
Start on the go
Hybrid working has seen a lot of people now only work in the office a few days a week, meaning convenient breakfast options are a way for retailers to capitalise on the trend.
“People are also looking for options that will help them stick to healthier habits, especially in the new world of hybrid working; nearly half of those who work both at home and in the office said they are conscious of what they eat to stay healthy,” JP Del Carmen, Head of Snacks at General Mills, explains.
The brand identified an opportunity to combine the “better-for-you” snacking trend with shoppers’ appetite for sweets, creating Fibre One 90 Calorie Doughnuts, which launched this summer.
Premier Foods is also looking to tap into the convenient breakfast trend with Ambrosia’s ready-to-eat porridge pots. “Whilst most products in this category require preparation, this product can be enjoyed ambient or hot, with no need to add hot water, making it ideal for shoppers seeking a convenient breakfast option,” Ben Knop, Food To Go Innovation Marketing Manager for Premier Foods, says.
Cutting down on meat
According to Urban Eat, one of the biggest trends in the food-to-go market is the demand for high-quality non-meat alternatives. “Our research shows that the rise in meat excluders and meat reducers is at an all-time high,” Charlotte Assinder, Brand Manager, Urban Eat, notes.
“Sixty-five per cent of people in the UK are reducing meat from their diets with a further 7% of the population excluding meat completely. However, our research also showed us that 65% of the population open to reducing their meat intake are also not willing to compromise on taste and quality to do so.”
The brand’s plant-based Roots range comprises two sandwiches, Cheeze & Pick and Falafel & Houmous.
Retailers can maximise their sales by ensuring that they have a range that covers the key price points:
- Entry-point – where great value for money is essential (e.g. 35p PMPs such as Golden Wonder’s Tangy Toms and Spicy Bikers which have the added benefit of a 2 for 60p on-pack promotion).
- Impulse – a core range for on-the-go occasions and lunchtime snacks (e.g. Golden Wonder’s 50p Transform-A-Snack).
- £1 Sharing – demands a big focus as the largest and fastest-growing segment.
- Pork Scratchings – with over 20% shoppers unwilling to switch if scratchings aren’t available, you are missing out if you aren’t stocking scratchings.
