Redefining Snacks: From Conventional Snacks to Snack Replacements

The lines between snacks and the rest of the food world are becoming blurred leading to new opportunities for those positioned outside the snack aisles         

Over time, busier consumers’ lifestyles, the changing role of women in the household and other cultural factors have led to consumers shifting away from sit-down meals at home towards irregular snack consumption out of the home. The rise of snacking has not only led to the development of the conventional snacks industry, but is now starting to change how non-conventional snacks are sold to consumers, creating a new field of competition for snack brands.

Opportunity for snack replacements grows as the size of the conventional snacks market grows              

The data suggests that consumers that are more accustomed to eating conventional snacks tend to be far more likely to also purchase snack replacements. This revelation has implications for brands on both sides of the snacks fence and will ultimately lead to conventional snack brands extending their reach into new territories and non-snack brands building a greater portfolio of products suitable for on-the-go consumption.

Savoury products winning in the snacks space as concerns over sugar stem demand for sweet snacks

The “War on Sugar” led by the media and activist groups has somewhat dented the potential growth of sweet snacks due to their reliance on sugar (and to a lesser degree, sweeteners). This has left a much bigger space for savoury snacks to grow, potentially yielding much better sales growth in future.

Milk drinks are fast becoming the vehicle of choice for sweet snacking  

Viewed as naturally nutritious, dairy products, in particular liquid varieties, have become an obvious option for brands looking to build a “healthy/ier snack” line extension. Chocolate and cereal brands have so far gained the most traction.

The rise of snack replacements will lead to a shifting competitive landscape in the snacks space

Snack companies such as Mondelez may currently think of their biggest rivals as Mars or PepsiCo but the reality is that as the blurring of categories continues and the very definition of “snacks” changes, Yili, Dean Foods and Lactalis may be the real competitors of the future.