With one in five baskets having a bagged snack and most Brits depending on their local stores for their snacking and munching needs, savoury snacks definitely park at the top of the pyramid, perfectly in harmony with convenience channel.
The total value of the savoury snack industry in the UK is estimated at more than £3,222 million, with major chunk held by crisps, followed by nuts, popcorn and baked products. Walkers, Doritos, Hula Hoops, Pringles, McCoys and KP Nuts have ruled this market for a long time and continue to do so.
Recent data from Mintel reveals the level of penetration of CSN in our households- 86 per cent of UK adults eat snacks at home, 63 per cent buy snacks on impulse and 62 per cent agree that having snacks in the evening is an affordable treat.
Whether it’s on the go, on the sofa or in-between meals or sometimes even complete meals, crisps, nuts and other bagged snacks are a regular feature of the Brits’ diet each week, particularly the humble potato crisp. No wonder, CSN represents an important opportunity for retailers to grow sales and footfall.
Matt Collins, Trading Director at KP Snacks, agrees that CSN is a fast growing, priority category with huge scale.
“Worth £3.9bn and growing at +9.1 per cent YOY, CSN shoppers are spending an extra £100 in the category,” says Collins, adding that 67 per cent more people choosing convenience for ‘main shop’,
KP Snacks has the broadest portfolio across all segments, with something to suit everyone and all occasions. Its snacks are consumed by over 20 million households and its diverse portfolio has delivered 44 per cent of the category’s growth in the last five years.
Overall, CSN products are enjoyed by virtually all households up and down the country and form an important part of the nation’s routine. Taste and enjoyment rule this aisle. Although health concerns are rising among shoppers, when it comes to snacking, most shoppers still find it difficult to overcome their urge to pick their favorite crisps and nuts and that too, in their decades-old favorite flavours. We are all creatures of habits after all!
Aslı Özen Turhan, Chief Marketing Officer at pladis UK&I, points out that this category is now worth £308.5m in convenience alone and is continuing to grow (+6.4 per cent) – even against the current background of rising costs.
“In total retail, the top 10 crisps and snacks brands represent 52 per cent of category growth – and our Jacob’s Mini Cheddars brand is paving the way, having reached record heights with sales worth £904,” Turhan says.
Generally, the snack sector is growing constantly- both due to better demand and sales as well as due to newer launches and innovations like healthier versions.
Trends to Tap-on
Consumers view health as a spectrum, with traditional drivers (calories, fat) forming part of the decision-making process, alongside more emergent claims such as plant based, and added benefits (protein, fibre and so on).
Also, veganism is in the air and retailers must not miss this train.
Scott Cooper, Managing Director at CHIKA’S Snacks, states that plant-based is a strong selling point for snackers, with nearly half of 25-44-year-olds (46 per cent) actively choosing plant-based snacks for their health credentials.
“We’re seeing strong demand for our new trio of plant-based Popped Rice Crisps, which launched in January, tapping into the trend for tasty plant-based crisps with brilliant ingredients and bold flavours,” Cooper tells Asian Trader.
As Brits continue to reduce spending time out of home (first it was Covid and now it’s rising prices and less disposable income), they will continue to spend more time at home- playing games, watching movies and catching up with friends. And, when doing any of it, they’re most likely to stock up on sharing formats for all the munching in-betweens.
Banking on these market predictions, Turhan from Pladis expects sales of larger formats to remain buoyant as they often represent a lower cost per kg.
Jacob’s Mini Cheddars brand is “case in point, outpacing the overall growth of larger formats (up +27.3 per cent) thanks to its range of accessibly priced multipacks and sharing bags”, says Turhan.
The cost-of-living crisis will continue through 2023 and so offering great value for money is key.
In general, now more than ever, Brits are now seeking good deals on groceries – and PMPs play a key role Range of Jacob’s Mini Cheddars £1 PMPs are a great choice here – as these products are worth £4.8m in the channel.
Matt Smith, Marketing Director for Tayto Group, too vouches on the power of “£1 PMPs”, saying they have been the main driver of category growth - growing more than twice as fast as the market.
As Smith explains, “Having surveyed both retailers and consumers, it was clear how important the £1 price-point is to both. In the current climate, consumers are feeling the pinch and independent retailers need to showcase great value for money. Instead of raising the headline price of our £1 PMPs, we’ve decided to stick to £1. Our new range is in stores now and demonstrates Golden Wonder’s commitment to delivering great consumer value whilst offering strong retailer margins.”
This commitment to £1 has been instrumental in Golden Wonder’s success with its £1 PMP Snacks range outperforming the market. PMPs are a proven way for independent retailers to demonstrate great value and so, in a cost-of-living crisis, it’s no surprise that 57 per cent say that PMP snacks are more important than ever, says Smith.
“Convenience shoppers worry that they will pay more for shopping locally and PMPs give them confidence that they are not being ripped off. That’s why PMPs have increased to 75 per cent of snacks sales in Symbols & Indies,” Smith tells Asian Trader, adding that “entry price-point must shout great value”.
“Our 35p Fun Snacks range, that includes Tangy Toms, Spicy Bikers, Awesome Oinks and Strikers, is delivering 16 per cent YoY growth. Its success is underpinned by the added value of 2 for 60p on-pack promotion. With a redemption rate of 80 per cent, this offer is great news for the consumer – and independent retailers – especially in a cost-of-living crisis!”
Squeezed pockets also mean people are making fewer trips to the pub, but this creates an immense opportunity for independent retailers. During lockdowns, sales of pork scratchings in convenience soared as more people enjoyed the ultimate pub snack at home rather than in the pub. With over 20 per cent of pork snackers unwilling to switch to another snack, the 42 per cent of stores not stocking pork snacks are collectively missing out on £6.2m a year!
For those looking for innovation in snacking, Mr Porky Crispy Strips offer the perfect solution for customers
“Meat snacks have long been a go-to solution for consumers looking for a high protein snack, but Mr Porky Crispy Strips is rapidly gaining a loyal following. With 20.7g of protein and only 0.1g of carbs per 35g pack, Crispy Strips really is the protein-packed porky snack! And proudly sporting a Great Taste award, consumers can be confident that it also delivers on taste!,” says Smith.
Another interesting name here is Fox’s Burton’s Companies (FBC UK) portfolio includes the popular and unique savoury snacking brand Fish ‘n’ Chips.
Colin Taylor, Trade Marketing Director at Fox’s Burton’s Companies, says that Fish ‘n’ Chips is “well placed to help retailers continue to offer value for money”, offering two formats of price marked packs- a 40g grab bag at 69p and more recently launching a larger 125g sharing format at £1.
With the average price per pack now at £1.26 for savoury snacks in the impulse channel, an increase of +15 per cent over the last year, Fish ‘n’ Chips offers retailers and shoppers a more affordable price point, says Taylor.
New Launches
Though shoppers love their favourite flavours and tend to pick familiar names, it is still a good idea to keep the store well stocked with new launches as well- both to engage customers by introducing new flavours and to attract new footfall.
Pladis has introduced a host of new flavours recently. While its new player Jacob’s Twiglets boasts of brand’s signature oven baked message, fibre content and high levels of wholegrain, it’s another new launch Jacob’s Mini Cheddars Nibblies are ideal for calorie-conscious shoppers seeking a tasty, flavoursome treat. The latter is available in 6x17g multipacks and 115 gm sharing bags.
Jacob’s Mini Cheddars too has joined the existing PMP line-up of Original and Smoky BBQ. It is available in Red Leicester and Nacho Cheese & Jalapeno flavours.
Makers are respecting shoppers’ health concern and have been responding adequately with healthier launches. One such launch is New! Chika’s Popped Rice Crisps.
“Our new Popped Rice Crisps (which launched in January) have been developed to fill this demand, with each single serve portion being less than 100 calories. They are also plant based, gluten free, and HFSS compliant, which meant out with the ‘bad’ (high salt and fat) and in with the ‘good’ - brilliant ingredients, big flavours, more spice, and added crunch,” Cooper tells Asian Trader.
Earlier this year, KP Snacks launched McCoy’s Epic Eats, a brand-new product range with two irresistible products, Nacho Cheese and Spicy Salsa. Available in a 45g Grab Bag format and £1.25 PMP, McCoy’s Epic Eats brings unique and tempting flavours to the category and has been designed to drive brand penetration.
Launched last year, KP Nuts Flavour Kravers range has been delivering bold flavours to evening sharing, the largest occasion within both nuts and sharing. It is available in three delicious flavours- Flame Grilled Steak, Smokin’ Paprika, and Sour Cream & Chive.
Last year, KP Snacks launched Nik Naks Scampi ‘N’ Lemon as a large format PMP, generating excitement with the return of a shopper favourite which had been absent across singles formats since 2008 and multipacks since 2019, says Collins.
Another new kid on the block here is CHIPOYS- a new rolled tortilla chip with some hot flavours. It is available in two variants- Fire Red Hot and Chilli and Lime.
“We are seeing great traction for our range of X-cut crisps including the recent additions of Chilli and Lime and the WOW lines including Jalapeno that add excitement to the category along with some exciting stronger flavours to help capture sales in that area and also allow forecourt entrepreneurs to ensure they can manage their margins in these challenging times by offering both non PMP’s as well as some PMP’s like Wanted Tortilla Chips’,” Andy Brown, Director, Envis Snacks’, tells Asian Trader.
Brown adds that Envis Snacks will continue to offer great value, differentiation, and availability to add incremental sales and compliment the best sellers in the unique forecourt market.
Another interesting news is that KIND Snacks is set to launch Caramelised Biscuit Nut- a combination of peanuts, almonds and cashews with a hint of caramel and note of spiced biscuit flavourings.
This bar is high in fibre, gluten free, has 81 per cent nuts and no artificial flavours. It complements KIND’s other HFSS compliant bars- Maple Pecan Almond and Fruit & Nut, which launched in 2022.
“When it comes to snacking, KIND believes you shouldn’t have to choose between delicious and nutritious. Our new Caramelised Biscuit Nut bar brings both of these things together, great flavour and high-quality ingredients. We are proud to launch our third HFSS compliant bar that does not compromise on taste or nutrition. We can’t wait to hear what our consumers think,” Audrey Arbeeny, UK Marketing Director, tells Asian Trader.
PROPER Snacks has also launched its newest flavours, PROPERCORN Sweet Cinnamon and PROPERCORN Sweet, to help bring something new and exciting to the popcorn category, whilst tapping into consumer needs for permissible indulgence.
Munch more, sell more
To cash-in on the wave of Big Night-ins and stay-at-home parties, store owners should stock more sharing packs of customer-favourite brands and types like pop corns.
Butterkist is a popular popcorn brand. Twice as large as its nearest branded competitor, it enjoys a 35 per cent market share.
“Our Butterkist Crunchy Orange Chocolate flavour toffee popcorn bridges the gap between popcorn and chocolate confectionary to create a sweet and irresistible snack,” Collins tells Asian Trader.
Tyrrells is another premium brand to bank-on as 46 per cent of shoppers are more inclined to trade-up to premium food and drink options when dining at home. However, the king here remains KP Nuts which leads the category as the number one brand in nuts and over four times bigger than the nearest branded competitor, worth £87.1m. Perfect to pair with a cold beer, KP Nuts has strong credentials in sharing occasions.
Noteworthy here is that over 100 SKUs and a quarter of the KP Snacks portfolio is now non-HFSS with reformulation strategy which saw non-HFSS products rolling out across popular KP brands- Tyrrells, Popchips, Hula Hoops Puft and Penn State.
Collins says that KP Snacks’ beacon brand in healthy snacking, Popchips, was reformulated across the entire range through a phased roll-out.
Capitalising on food to go is recommended by Collins saying it is a showing “long-term, resilient growth trend”. KP Snacks portfolio delivers the top three selling meal deal SKUs- Hula Hoops Big Hoops BBQ Beef, McCoy’s Salt & Vinegar and Flame Grilled Steak.
Displaying shoppers’ favorite brands, sprinkled smartly with eye-catching new launches, always works.
When it comes to healthier and better-for-you snacks, Eat Real is leading the way as one of the top sharing brands in convenience.
“Eat Real has a high visibility in the convenience sector, shaping itself as a corner shop essential that people know and love for its recognisable, stand out offering. Its robust, recognisable packaging allows retailers to use it for effective display walls, making an eye-catching free-from or snack aisle display,” Helen Pomphrey, Marketing Director at Eat Real, tells Asian Trader.
Key is to also showcase a broad range of flavors', textures and snack types for all occasions. Eat Real does this by offering both compliant and non-compliant snacks, with ranges offering unique flavour combinations like Hummus, Quinoa and Lentil Chips.
With HFSS legislation shaking up the crisps and snacks aisle, it is crucial to take account of the store’s stock.
PROPER Snacks have stayed true to its taste credentials and launched a fully-HFSS compliant range, reformulating its core flavours within the range- something which has enabled it to continue to secure an off-shelf feature.
“To drive quick footfall and attract younger, socially savvy consumers, retailers should consider stocking NPDs and limited-edition products that have driven social media buzz on the likes of TikTok,” advices Bridget Hirst, Head of Brand at PROPER.
PROPERCHIPS, has been a huge success story. Since its launch in 2019, we’ve seen growth from £3.4m to £14.7m, delivering incremental growth to the CSN category and attracting new and younger shoppers, says Hirst.
Customers are always drawn towards nostalgia and comfort, and this is where the range of PROPER will come in handy. PROPER offers a range of bold, nostalgic flavours from its PROPERCRISPS range, which includes cult classic flavours such as Cheese and Onion, as well as its new adventurous launch- Sweet Cinnamon PROPERCORN.
“Thanks to PROPER Snacks’ diverse portfolio, we support independent retailers by providing snacks best suited to their shopper missions, whether that’s popcorn for a night in or healthier crisps for lunch on the go,” Hirst tells Asian Trader.
Taylor from FBC also feels that shoppers respond well to moments of nostalgia. Fish ‘n’ Chips, which is iconic shaped salt and vinegar snack from the 80’s, resonates well with shoppers in the convenience channel and provides shoppers the opportunity to reconnect with childhood memories of the brand.
Brown from Envis Snacks recommends keeping good availability, consistent pricing and stock rotation as the key along with adding some excitement with new lines (like Chipoys) or differentiating lines (like Pomsticks).
An interesting product to consider here is the range by Boundless whose most popular launch to date is Nuts & Seeds Boosts.
“Not only are they the perfect on-the-go pick me up shot of goodness, but they’re there to boost meals when paired with a meal deal or avoid the afternoon slump once grabbed from the office canteen. Their reach knows no bounds,” Cathy Mosely, Founder of Boundless, tells Asian Trader, while insisting on the importance of giving discounts and offers.
"The cost of living is on everyone’s mind and in their pocket. Customers need to be given competitive prices. It’s not easy for independents to always do that but it is key to this year,” says Mosely.
Boundless also offers in-store sampling as well as informative training sessions, in-house nutritionist and FSDUs that help it stand out in store and give retailers a point of difference for their customer.
Also, with better-for-you snacking is firmly on the mind of the consumer, just saying less sugar or salt isn’t enough, says Mosely, adding that consumers are seeking snacks packed with nutrients, high in fiber and gut friendly ingredients.
“By being the only snacking brand to deliver gut health on mainstream shelves we are met with a more loyal shopper than the brands owned by the big guys with bigger pockets than ours – something buyers see as invaluable,” says Mosely.
Tayto Group, the leading pork snacks manufacturer, with almost 70 per cent share and the two leading brands - Mr Porky and Midland Snacks - is outperforming the market and can help retailers maximise this opportunity.
In Smith’s words, with pork snacks being eaten twice as often at home than in the pub and 74 per cent being bought on impulse, pork scratchings can deliver “significant VAT-free sales when merchandised cleverly”.
“Scratchings are often consumed with alcohol, so hanging clip strips with BWS will deliver incremental sales without taking up precious shelf or floor space. As the market leader in pork snacks, Tayto has recognised this opportunity, with scratchings from both Mr Porky and Midland Snacks available in clip strips, pub cards and shelf-ready cases. Retailers can also increase basket spend by premium-pricing scratchings, as most shoppers expect to pay more than £1 per pack,” he says.
Wrapping up
The cost-of-living crisis is on top of consumers’ minds, as highlighted in a survey by Tayto Group, where 95 per cent of consumers were concerned about the cost of groceries with almost 40 per cent being very or extremely concerned.
One of the ways in which consumers are economising is to save petrol by shopping locally. This provides an opportunity for independent retailers to become the go-to place to purchase drinks and snacks for lunch or on the way home for a big night in. But only if shoppers believe they are getting good value for money.
Turhan from Pladis stated that though some shoppers are trading down as they “pinch the pennies”, there’s still a huge pool of shoppers who are turning towards established, heritage brands for treats they trust to deliver on taste and quality.
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As said by Mosely of Boundless, we are a nation of snackers and that is not going to change. However, the way we snack is expected to change rapidly. Propelled by the heightened focus on health during the pandemic, the proportion of people trying to eat healthily all or most of the time has spiked.
Noteworthy here is that shoppers are trying to moderate their consumption of unhealthy snacks and are giving preference to “quality over quantity”. Apart from less salt, shoppers will be on the lookout for claims like "high protein," "energy boosting," "immune support," and "digestive health".
UK snack market is expected to register a CAGR of 5.6 per cent during 2017-2027 and a huge slice is expected to fall into the lap of convenience channel.
Let’s make the best of it by stocking the complete bestselling range, complimented with new launches as well as a wholesome wide variety of healthier, better-for-you snacks and nuts alongside to hook the shoppers to your store as they keep coming back again to stock some more. Afterall, it’s hard to have just one. Happy snacking!
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