Savoury Snacks in Dominican Republic

2021 DEVELOPMENTS

Savoury snacks experiences growth in 2021 due to ongoing restrictions and home schooling

Despite nightly curfew restrictions, savoury snacks is set to experience retail volume and current value growth in 2021. Children, who often consume savoury snacks, such as potato chips, at school transferred consumption to their homes.

Industry players refocus their advertising activities due to lower footfall in stores

Savoury snacks will continue to enjoy wide distribution through both modern and traditional grocery outlets in 2021 but will struggle due to suspensions of marketing efforts at points of sale as part of a government resolution to stop the pandemic. Savoury snacks will remain highly competitive, with brands constantly vying for consumers throughout both the modern and traditional channels with regular advertisements.

Frito-Lay Dominicana maintains category lead in 2021

Frito-Lay Dominicana is likely to remain the leading player in savoury snacks in 2021. The company will benefit from its wide portfolio including its 2019 launch of its Doritos Heat Wave brand, the spiciness of which increases with chewing.

PROSPECTS AND OPPORTUNITIES

Savoury snacks benefits from a return of impulse purchases over the forecast period

Over the forecast period savoury snacks will return to moderate growth as consumers resume prior consumption patterns. The category will benefit from the return of impulse purchases, which will boost the popularity of single-serve packaging formats as consumers return to on-the-go consumption once restrictions are lifted.

Opportunities for private label as consumers trade down over the forecast period

The overall trend towards ‘snackification’ may pause in the long-term as the economic impact of COVID-19 may force consumers to reduce spending on food due to lowered disposable incomes. Even though the pandemic’s damage to the local economy may weaken spending power, it will also present an opportunity for private label players that are not subject to premium prices.

Opportunities for industry players through the launch of healthier ingredients, low prices and targeted marketing boost impulse buys, even online

Opportunities for industry players in savoury snacks are expected to come in the form of fewer additives while non-genetically modified ingredients will become increasingly popular. However, producers will have to be mindful of low-income consumers whose main buying criteria will be price while the opening of society will also boost impulse consumption of low-priced products among this demographic.