2021 saw a positive performance, fuelled by the return of social snacking and impulse purchasing after COVID-19 vaccines were rolled out, with retail sales rising by 2%. 2022 will see growth challenged again, with the invasion of Ukraine pushing production costs up. Amid more frugal lifestyles, consumers will seek value for money. At the same time, there is room to leverage appetites for a treat, health attributes and sustainability.
The COVID-19 pandemic has spurred various new eating occasions which can benefit snacks players. More time spent in the home offers opportunities for meal substitution, as well as for reward and distracted snacking while streaming content or gaming. At the same time, the lifting of COVID-19 measures enables people to socialise in person again: a boon to gift and seasonal sales.
The sense of treating oneself remains at the core of the snacks offering. As consumers have fewer out-of-home activities than pre-pandemic, and are reducing lifestyle expenses, permissible indulgence through smaller treats, trendy ingredients and sensorial novelty remain effective strategies.
The trend for plant-based alternatives to animal-based foods is spreading fast within snacks. Dairy-free variants – extending from ice cream to chocolate confectionery – have been particularly dynamic. Whilst the trend will further transform snacks, perceived value will often come from a combination of attributes, not least good flavour and functional benefits.
Snacks hold an increasingly relevant role in easing access to nutrition. Alongside digestive health and immunity support on the back of the pandemic, energy boosting and brain health are two areas that hold promise. This is likely to expose snacks to new areas of nutritional science, and lead to closer rivalry with vitamins and supplements, energy drinks and coffee.
The multiple facets of sustainable goals are slowly being addressed through innovation strategy, giving birth to more and more sound alternatives for the planet and for business longevity. Flexible packaging will evolve further, but more relevant is responsibility post-consumer waste, as well as the local sourcing of ingredients and shortening supply chains.
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