Savoury Snacks in Malaysia

PROSPECTS

Slowdown in volume sales due to change in consumer purchasing patterns

Retail volume sales of savoury snacks grew at a slightly lower rate than the review period CAGR in 2019, while value sales kept apace. The category continued to suffer from ever intensifying competition from other snacks categories, particularly chocolate confectionery.

Launch of new and exotic flavours widens customer base and consumption occasions

In response to slowing volume sales, manufacturers introduced various novel products in the latter part of the review period, particularly within nuts, seeds and trail mixes. New products increasingly incorporate unusual ingredients such as wasabi, durian, salted egg and honey butter, with distinctive options often bought for the purpose of gift giving.

Extensive marketing counterbalances rising price-sensitivity and health consciousness

As consumers are likely to remain price conscious and concentrate their purchases during periods of price promotion over the forecast period, industry players will have to be more inventive in their marketing and promotional campaigns. This will stimulate industry players into entering collaborations, such as Mamee-Double Decker’s limited arrangement with 7-Eleven to offer free gifts with every purchase of Mister Potato Crisps as seen over the review period.

COMPETITIVE LANDSCAPE

Mondelez and Mamee-Double Decker maintain lead by ensuring prime shelf space

Mondelez (M) Sales Sdn Bhd maintained the lead in the category in 2019 but lost share to second-ranking Mamee-Double Decker (M) Sdn Bhd, which experienced stronger sales growth thanks to the strength of its Mamee brand. Both players have been present in the category for some time.

Products with a healthier positioning gather momentum

Many of the leading industry players introduced healthy ingredients in their brands. For instance, Tong Garden Snack Foods introduced Tong Garden Almonds, Pistachios, Strawberry and Goji in nuts, seeds and trail mixes in February 2019.

Players engage in partnerships in order to differentiate

Some industry players are expected to partner with multinationals to introduce new variants of savoury snacks such as salted egg and honey butter over the forecast period. For instance, URC Snack Foods (M) Sdn Bhd collaborated with Calbee Inc at the end of 2018 to introduce Jack 'n' Jill Calbee potato chips in flavourful variants, such as Smoky BBQ, Flamin’ Chili and Classic Salted.

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