Snackification – a trend in which consumers snack in place of meals – has reshaped both the nutritional and competitive landscape in snacks. This report unpacks the underlying drivers and occasions that have been the primary battleground for this trend. The future of snackification remains uncertain. Innovation in food delivery stands to threaten occasions traditionally dominated by packaged snacks. Brands can use four strategies to sustain the momentum of snackification in an uncertain future.
This report comes in PPT.
Consumer lifestyles are evolving in ways that make time increasingly scarce. Urbanisation and demographic shifts are creating smaller households, while the digital age is reshaping the paradigms and expectations around time use.
These new time pressures are driving consumers to seek more pre-prepared food solutions. Eating habits are also becoming more fluid as consumers seek convenience. The concept of “three square meals” at fixed times is fading.__
Snacks are a primary beneficiary of these new eating habits. A trend known as “snackification” – in which snacks capture share from traditional meals – has reshaped eating occasions. Breakfast has been the primary battleground.
Meal replacement snacking has generated strong demand for protein, satiety and healthier snack categories. Manufacturers with more indulgent-focused “treating” portfolios have pivoted via acquisition in order to adapt to this shift.
Snackification has not been able to make inroads during evening occasions. Consumers have instead turned to meal kits, prepared food in retail outlets and foodservice delivery in order to save time on food preparation.
Investment and innovation will make on-demand delivery of freshly-made food more affordable than ever before. As such, occasions that have traditionally been dominated by packaged snacks may come under siege.
Packaged snacks need to innovate in their key advantages to best compete with freshly prepared food. These include a ubiquitous retail presence, solutions for tailored nutrition, a focus on portability and smaller pack sizes, and cross-merchandising opportunities with new business models in delivery.
In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.See All of Our Definitions
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