Crisps and snacks continue to drive sales for retailers, due to increased demand and the category’s affordability.
By Elena Dimama
The Crisps, Snacks and Nuts (CSN) category remains a strong driver of sales for retailers, even in difficult financial times.
According to Lumina, one in five baskets in convenience and impulse includes a CSN product, with the bagged snacks segment growing ahead of total grocery at +16.4% vs +7.2%, as per Kantar figures.
“Now more than ever, consumers are looking for products which are considered to offer good value for money, with retailers reporting that 86% of customers are looking for value and deals,” Matt Collins, Trading Director at KP Snacks, says.
“PMP formats have seen significant growth in recent years and will stay increasingly relevant as the cost of living remains high. PMPs offer consumers great value for money, with clear pricing reassuring shoppers that they’re getting a good deal,” he adds.
In fact, PMPs are worth over £325m, with 57% of impulse shoppers buying the format, according to Lumina and Nielsen.
As Matt Smith, Marketing Director for Tayto Group, notes: “Convenience shoppers worry that they will pay more for shopping locally and PMPs give them confidence that they are not being ripped off.
“That’s why PMPs have increased to 75% of snacks sales in Symbols & Indies.”
He adds: “Having surveyed both retailers and consumers, it is clear how important the £1 price-point is to both groups.
“Consumers are really feeling the pinch at the moment and independent retailers are winning where they can offer great value for money.”
Aslı Özen Turhan, Chief Marketing Officer at pladis UK & Ireland, also thinks PMPs present a great opportunity for retailers to drive category sales.
“This channel-exclusive format has long been selling through in convenience stores thanks to the fact PMPs are perceived to represent good value – something more pertinent now than ever before,” she says.
Better for you
Consumers have been showing a greater interest in nutrition and wellness in recent years, which saw a shift in the crisps and snacks category – whether it was lower-calorie options for favourite items or paying attention to specific ingredients.
“Research has shown that 40% of consumers state a clear preference for healthy snacks,” JP Del Carmen, Head of Snacks at General Mills, tells SLR.
“The Better For You Snacks category is therefore in a strong position, totalling £706.5m value sales and +6% uplift.
“People are showing a greater awareness of nutrition and want to combine both an enjoyable eating experience with boosting their intake of certain nutrients. As a result, protein content remains an unwavering trend, and an important purchase criterion in the snacking category.”
Due to the increased demand for healthier products, brands have been busy innovating and reformulating to put health at the heart of their offering.
“With health topping the news agenda, there’s a pool of shoppers who are looking for new, lighter takes on their favourite crisps and snacks – without wanting to compromise on taste,” Özen Turhan adds.
And although it’s not yet come into force in Scotland, the introduction of HFSS legislation in England meant a lot of brands reformulated products or introduced new ones.
“In the past year, the Healthier Snacking segment has grown rapidly at +33.6.%,” Collins notes.
“At KP Snacks we have more than 100 non-HFSS SKUs, the equivalent of a quarter of our portfolio.
“Through People and Planet, our responsible business programme, we have committed to generating 55% of our sales through non-HFSS products or products with 100 calories or less per pack by 2030.”
NPD plays a crucial role in the crisps and snacks category with brands launching new ranges to keep up with demand.
“Earlier this year, we launched McCoy’s Epic Eats, a brand-new product range with two irresistible products, Nacho Cheese and Spicy Salsa,” Collins notes. “Available in a 45g Grab Bag format and £1.25 PMP, McCoy’s Epic Eats brings unique and tempting flavours to the category and has been designed to drive brand penetration.
“Bringing a kick to the Healthier Snacking segment, we also recently launched popchips Hot & Spicy,” he adds.
General Mills has also ramped up innovation, with the brand having shaken up the category with the launch of Fibre One 90 Calorie Doughnuts.
“Fibre One 90 Calorie Doughnuts offer a great taste and texture for a permissible product. Although not high in fat or fried, the taste evokes the more indulgent versions in bakery aisles.
“They also mirror the visual appeal of fresh doughnuts with their glossy icing and colourful sprinkles and are available in two flavours, Chocolate and Strawberry & Cream, providing customers with that all-important choice.”