Snack sales are still being impacted by unprecedented historic events (eg the COVID-19 pandemic, war and inflation). The latest updates to Snacks Industry Forecast Model suggest that with prices on the rise, sales are expected to see a slowdown in volume growth and a more pronounced focus on value, although consumer spending on the category will remain resilient.
This report comes in PPT.
With a sharp rise in inflation leading to higher costs of business (eg commodity price increases), a variety of measures to tame business costs are being undertaken. Notably, snack product price increases have contributed to snack growth, but not without consumer complaint regarding snack pricing actions.
Snack volumes are expected to see either downgrades or limited growth across markets. The higher prices of snacks are forcing consumers to make trade-offs in their purchases and even cut back on snacking in general. In addition, manufacturers’ shrinking of packages to control costs is also limiting volume growth expectations.
Demand for snacks is set to retain its resiliency, given prompt and effective industry action. Snack players and consumers agree that sustainability and health-related issues are going to be highly impactful in the future, and thus will impact future innovation and growth in snacks.
Considering major historical events (eg the COVID-19 pandemic and inflation), manufacturers must re-evaluate their brands’ value propositions and ensure they are adapting to the relevant needs of consumers.
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