Savoury Snacks in Canada

2021 DEVELOPMENTS

Lockdown boom will be followed by a modest decline in demand

2020 saw a surge in demand for savoury snacks, as consumers spent more time at home and snacked more frequently due to boredom, stress or a combination of both. For many Canadians in 2020, snacks offer comfort and a degree of indulgence during a difficult period.

Vegetable, pulse and bread chips and other savoury snacks benefit from consumer shift away from carbohydrates and towards protein

Vegetable, pulse and bread chips and “other” savoury snacks (primarily, but not exclusively, meat snacks) will be the top performers in savoury snacks during 2021 – as they were during the review period. Both of these categories will benefit more from increased consumer interest in protein from both animal and plant sources.

Leader Frito-Lay Canada is gradually losing retail value share to small rivals with a health and wellness positioning

Frito-Lay Canada, a subsidiary of PepsiCo Inc, will remain the leading player in savoury snacks during 2021, accounting for the top-five brands (Lay’s, Ruffles and Miss Vickie’s in potato chips and Doritos and Tostitos in tortilla chips) and more than a third of retail current value sales. It also has the leading brand in the rapidly expanding vegetable, pulse and bread chips category (Stacy’s Pita Chips), as well as in popcorn (Smartfood).

PROSPECTS AND OPPORTUNITIES

Salty snacks will continue to lose ground to healthier alternatives

There will be a strong rebound in retail current value sales of savoury snacks during 2022, and demand growth will remain robust during the remainder of the forecast period. Vegetable, pulse and bread chips will remain the top performer during the forecast period as a whole, well ahead of other savoury snacks and nuts, seeds and trail mixes.

Vigorous new product development will continue to drive strong growth in sales of vegetable, pulse and bread chips

Health and wellness savoury snacks offered by small players are expected to perform very well during the forecast period. Among the companies that are well placed in this regard are Healthy Crunch, Prana Snacks and Three Farmers.

E-commerce will continue to grow in importance

The retail value share of e-commerce in savoury snacks more than doubled during 2020, as a growing number of home-bound consumers shopped online for the first time, and this channel will continue to exhibit strong growth during 2021 and the forecast period as a whole. Local consumers (particularly younger ‘digital natives’ who have grown up with smartphones and the internet) are gradually becoming more accustomed to doing their grocery shopping online, while the advent of 5G mobile internet will make online shopping easier and more convenient than ever.