Savoury Snacks in Estonia

PROSPECTS

Negative health publicity stalls volume growth for some categories

Certain savoury snacks categories such as popcorn, potato chips and tortilla chips have lost some growth momentum. This has transpired as their general image has deteriorated somewhat for their presumably harmful heat-induced compounds, which consumers perceive as possible carcinogens due to the widespread healthy nutrition campaigns and articles in the press.

Local players offer healthier and higher-quality products, with some eye-catching flavours being launched

Local manufacturers are developing more expensive but higher-quality savoury snacks with organic ingredients, especially the dried meat varieties. For instance, Tallegg OÜ Chick Snacks are available in Traditional, Smoky and Chips flavours, looking like chips but at the same time being much healthier and high in protein.

The bar goes up for savoury snacks as buyers have more spending power and are focusing more on product quality

Savoury snacks products are not regarded as adequate meal replacements and are linked mainly to entertainment occasions. Used predominantly at private and public parties, social gatherings, cinemas or pubs, they are highly dependent on disposable income.

COMPETITIVE LANDSCAPE

Strong advertising cements PepsiCo’s leadership though Balsnack continues to gain ground with successful local savoury snacks

PepsiCo Inc with its brand Lay’s maintains its lead in the category due to strong and intensified advertising and merchandising. Balsnack International Holding AS ranked second in 2019, as the manufacturer has found the key to success with the implementation of local ingredients, innovative recipe formulas and a wide range of products, actively advertised online and on social media.

Potato waffles are a successful new format thanks to Balsnack, while Taffel demonstrates the power of local origin in Estonia

As the category needs innovation to attract the attention of bored consumers, some local manufacturers have successfully taken the initiative. Potato waffles were launched in the second half of the review period by local manufacturer Balsnack and are a great example of a new development gaining immediate success in the domestic marketplace.

Foodservice outlets pose a threat to retail sales as more people eat out, while private label could lose out to branded products slightly as purchasing power rises

Foodservice channels are of increasing importance to savoury snacks producers as, with their growing income, Estonians are actively going out more to bars, pubs and cinemas, where savoury snacks dominate the menu. Local and international manufacturers are rushing to establish their positions in entertainment and foodservice outlets with an extensive range of branded products and advertising tools.

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