After an upturn in demand during 2020 due to the home seclusion trend as a result of the pandemic-induced lockdowns, savoury snacks is set to record slower retail volume growth in 2021 as Israelis adjust their consumption habits towards out of home experiences, reducing demand for bulk packs. With schools closed, children and teenagers in particular, spent greater time at home and looked for salty snacks such as potato chips to help alleviate stress and boredom, in addition to accompanying alternative activities such as gaming or watching streaming services such as Netflix.
The more expensive niche of vegetable, pulse and bread chips, and the larger category of nuts, seeds and trail mixes are expected to record above average retail volume growth rates compared to savoury snacks as a whole in 2021, with the latter in particular benefiting from a more natural, and therefore, less processed, positioning. These products are considered to be healthier snacks, with the pandemic seeing a notable shift in preference amongst consumers from unpackaged nuts to packaged formats as a result of increased hygiene concerns.
Osem Food Industries Ltd is set to strengthen its overall leadership of savoury snacks in 2021, while Strauss Group will continue to follow at a significant distance offering brands such as Elite, and locally distributing Doritos for PepsiCo Inc. Osem Food’s long-standing leadership is linked to its Bamba and Bissli brands, which it locally distributes for Nestlé SA, and which continue to benefit from strong brand loyalty.
Retail volume growth is predicted to be subdued over much of the forecast period as consumers spend longer outside of the home as restrictions are relaxed, driving stronger growth rates through foodservice, while smaller pack sizes for on-the-go consumption and impulse purchases are also likely to further influence purchasing decisions. Premiumisation trends are also expected to continue as evident in marginally higher value growth (at constant 2021 prices) compared to retail volume, with the average unit price set to marginally increase, driving up demand for brands such as Snyders as well as the launch of interesting flavours from other brands.
Flavour innovation is another strategy which offers further potential for expansion, with major brands investing in interesting launches at the end of the review period. Bissli Zaatar and Garlic and Onion flavours for instance, were marketed as being suitable during social distancing measures as the flavours leave a strong taste in the mouth afterwards.
The shift in packaging sizes that occurred during the pandemic is likely to be reversed due to the greater return of out-of-home snacking. Larger formats were more popular in 2020 due to at-home consumption, which also impacted unit prices as larger bulk packs offer greater affordability to consumers.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Sweet and Savoury Snacks industry in Israel with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Sweet and Savoury Snacks industry in Israel, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Sweet and Savoury Snacks research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page