The Future of Savoury Snacks: Impulse, Innovation and Convenience

PINAR HOSAFCIBakery and Snacks Analyst

SnackEx 2015 Istanbul, Turkey 11 June 2015

@PinarHosafci

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London 

Singapore

Shanghai

Dubai

Vilnius

Cape Town

Santiago

Tokyo

Sydney

Chicago

Bangalore

Defining Savoury Snacks

Sweet and Savoury Snacks

Fruit Snacks Nuts Chips / 

CrispsTortilla Chips

Extruded Snacks Pretzels Popcorn Others

What is “others”?

Western vs Eastern Europe

Retail coverage

Grocery Retail

Modern Grocery Supermarkets, Hypermarkets, Discounters, Convenience Stores, Forecourt Retailers

Traditional Grocery Independent Stores, specialist stores, kiosks, open markets, street stalls 

Non‐Grocery and Mixed Retailers

Non‐Grocery Apparel and footwear, electronic, health and beauty, home and garden, leisure and personal goods 

Mixed Retailers Department stores, mass merchandisers, variety stores, warehouse clubs

Non‐Store Retail

Internet

Direct Selling

Vending

Homeshopping

• STATE OF THE INDUSTRY• THE RISE OF SAVOURY SNACKS• OMNIPRESENT SNACKING • WHAT THE FUTURE HOLDS

Savoury snacks lead the charge…

‐1.0%‐0.5%0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14Year‐on‐year  retail volum

e grow

th

Volume growth of Savoury Snacks vs Packaged Food

Packaged Food Savoury Snacks

… increasingly so in Western Europe

‐1%

0%

1%

2%

3%

4%

5%

6%

‐0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2009 2010 2011 2012 2013 2014

Year‐on‐year volum

e grow

th

Retail volume –million tonn

es

Retail volume and growth in Eastern vs Western Europe

Retail Volume ‐ Eastern Europe Retail Volume ‐ Western Europe% Volume Growth ‐ Western Europe % Volume Growth ‐ Eastern Europe

Branded snacks are gaining ground

4%

8%

12%

16%

20%

24%

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Private Labe

l Sha

re 

Retail Va

lue  ‐€billion

Savoury Snacks in Europe : Branded vs Private Label

Private Label Branded Private Label Share

Where does savoury snacks sit in Europe?

€22 billion

3 kg

5%

• STATE OF THE INDUSTRY• THE RISE OF SAVOURY SNACKS• OMNIPRESENT SNACKING • WHAT THE FUTURE HOLDS

Europe as a global standout

1

3

9

27

22

24

0 2 4 6 8

Australasia

Middle East and Africa

Latin America

North America

Europe

Asia Pacific

€ billion

Market S

ize 2014 (€

billion

) 

Absolute Value Growth 2009‐2014

Western EuropeEastern Europe

Europeans are avid snack consumers

>5 kg2-4.991-1.99<1NA

Savoury Snacks: Consumption per capita

3 1

IR: 6.7

NO: 6

UK: 6.1

NL:6.6SE: 5.8

The biggest winners in savoury snacks

Crisps

Extruded snacks

Nuts

PopcornPretzels

Tortilla Chips

Others

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

0 0.2 0.4 0.6 0.8 1 1.2

volume  % CAG

R –2009

‐2014

Per capita sales (kg) ‐ 2014

Savoury Snacks : Per capita sales vs growth

Flavour innovation key to chips’ growth

0.0%

2.5%

5.0%

7.5%

10.0%

0

50

100

150

200

Russia UK Germany France Turkey

% CAG

R

Growth ‐€million

Chips: Top 5 Growth Markets 2009‐2014 

Absolute Growth %CAGR

RUSSIA GERMANY

Tortilla chips rising stars: UK and Turkey

0%

2%

4%

6%

8%

0

20

40

60

80

100

UK Turkey Germany Netherlands Norway

% CAG

R

Growth ‐€billion

Tortilla Chips: Top 5 Growth Markets 2009‐2014 

Absolute Growth %CAGR

TURKEYUK

• STATE OF THE INDUSTRY• THE RISE OF SAVOURY SNACKS• OMNIPRESENT SNACKING • WHAT THE FUTURE HOLDS

It is always snack time

Source: Euromonitor International online consumer survey – Global Consumer Trends 2011

Millennials shake up the market

0%

20%

40%

60%

80%

100%

15-34(Millennials)

35-54(Generation X)

55-64(Baby Boomer)

65+

% o

f res

pond

ents

Snack Consumption outside the Home

7+ per week 5-6 per week

3-4 per week 1-2 per week

Source: Euromonitor International survey results– Out and Abound Survey 2012

Flavours get bolder

The rise of Mexican and Asian cuisine leads to a surge in hot flavours with jalapeno and chipotle being particularly prominent.

SPICY

Traditional meal flavours are increasingly being incorporated into savoury snacks, and perform particularly well  in countries with a strong culinary tradition like France. 

GOURMET

The mix of sweet with savoury is also gaining traction with cinnamon, chocolate but also honey featuring more frequently in crisps and extruded snacks.

SAVOURY

Savoury expands beyond chips 

UK

SPAIN

SWITZERLAND

The ubiquity of shape and textures

Fun

Excitement

VarietyExperience

“Health”

Retail space gets crowded

40 30 20 10 0 10 20 30 40

Vending

Internet Retailing

Non‐Grocery Retailers

Forecourt Retailers

Convenience Stores

Discounters

Hypermarkets

Supermarkets

Traditional Grocery Retailers

Share of total retail distribution (%)

Retail Distribution of Savoury Snacks

Eastern Europe Western Europe

Mod

ern

Gro

cery

R

etai

lers

Internet and non-grocery are among the fastest growing channels in Western Europe.

Making use of alternative channels

NUTS

CHIPS

SPAINTURKEY

• STATE OF THE INDUSTRY• THE RISE OF SAVOURY SNACKS• OMNIPRESENT SNACKING • WHAT THE FUTURE HOLDS

Healthy snacks 2.0

0 10 20 30 40 50

Organic

Limited/no added salt

No artificial ingredients

No transfats

Reduced/low calorie

Health organization

Vitamins or fiber

Limited/no added fat

Is all natural

% of respondents

Purchasing Decision: Which of the following factors or ingredients do you

look for on food labels? Dried & Baked        Poland

Air‐dried              Germany

Source: Euromonitor International survey results– Global Consumer Trends survey 2013

Vegetable chips are gaining prominence

Savoy cabbage chips 

0%

1%

2%

3%

4%

5%

Historic Period(2009‐2014)

Forecast Period(2014‐2019)

% volum

e CA

GR 

Growth of Savoury Snacks by Ingredients

Cereals Potato Products Vegetables

Ingredients: Savoy cabbage , onions , cashew nuts , sesame seeds, nutritional yeast , sea salt , lemon juice 

From single grain to super grain

Simple grain

Multigrain Whole grains Super grains

Protein ranks high on the agenda

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

Historic(2009-2014)

Forecast(2014-2019)

%C

AG

R

Savoury Snacks: Volume Growth in its Nutritional

Components

Fat Protein

Insects?

It is time for cricket crisps!

Netherlands, November 2014 UK, November 2013

Moving towards mini packs

“Put a packet in your pocket”

Down‐the‐hatch packs for nuts

ITALY

RUSSIA UK

0% 50% 100%

Eastern Europe

Western Europe

% share in growth

Savoury Snack Packaging Forecast Growth 2014‐2019

0‐50 g 51‐100 g101‐300 g 301‐1000 g

The Future

Key messages

Focus on stealth reduction

Use clean ingredients and clear labelling

Leverage packaging to communicate a clear message

Target diversified retail

THANK YOU FOR LISTENINGPinar HosafciBakery and Snacks AnalystPinar.Hosafci@euromonitor.com