As Spring blooms and the nation goes out more on the move, the social season begins, and with it the peckishness and savoury snacking makes every occasion more flavoursome
The UK is one of the biggest snacking nations in the world, giving the crisps industry the opportunity for innovation. This is great news for independent retailers, who are ideally suited to cash in on the grab-and-go occasion. As the cost-of-living squeeze continues, crisps and snacks are ever more the ideal affordable treat, and a myriad of PMPs and promotions serve only to enhance this appeal.
The UK's crisps, snacks, and nuts (CSN) market is valued at £4 billion and is growing by 10.7 per cent year-on-year, according to Nielsen data. The market is expected to reach more than £7bn by 2028 [Mintel, 2024].
In the convenience channel alone, snacking sales have reached over £1.4bn, with the category soaring into double-digit growth (+17.9 per cent), despite the challenges posed by increasing costs [Nielsen 52w/e 02.09.23].
“Although shoppers remain more cautious with their spending, we’re still seeing a noticeable trend towards moments of togetherness with loved ones– and snacking is a central part of this,” comments Aslı Özen Turhan, chief marketing officer at pladis UK & Ireland.
Photo: iStock
The 2024 Mintel report on the category finds that the volume sales of crisps, savoury snacks and nuts have held up well despite cost-of-living pressures. The small role of these snacks in household budgets, the scope for trading down, and leading players’ NPD appear to have shielded them from cutbacks, the report states.
Mintel’s market research found that crisps/crisp-style snacks are eaten the most frequently of the different types of snacks researched. Crisps and potato-based/other snacks dominate volume sales in the UK snacking market with a 76 per cent share, and Walkers’ Crisps leads the crisps segment by a distance, with over half of volume sales.
Peanuts hold the largest share in the UK nuts market, their affordability a key driver of their appeal, accounting for over a third of value sales in the market. The nuts category enjoyed notable volume sales growth in 2023, up by seven per cent.
Occasions and formats
Many different consumption occasions drive the sales in the CSN category, the most important being evening snacking, followed by daytime snacking and having with lunch, according to the Mintel report.
Kenton Burchell, group trading director at Bestway Wholesale, agrees that the category is key for big night in where sharing saw strong growth in the recent periods as many enjoy indulging in a variety of crisps and snacks while watching a film, sporting events, or spending a relaxed evening at home.
“For retailers, curating a selection of popular and trending snacks, including crisps, popcorn, nuts, and other favourites, can be a strategic move to attract customers looking for items to enjoy during their big night in,” he suggests.
“Additionally, offering promotions or bundled deals on snacks may further appeal to consumers planning for such occasions.”
Burchell adds that the size of the crisps and snacks opportunity for independent retailers can vary based on several factors, including location, consumer preferences, and market trends.
“The crisps and snacks category is a huge opportunity for independent retailers and the lunchtime meal deal with a crisps and snacks option is a key footfall driver,” he says.
“With the continued trend of hybrid working, people tend to snack and indulge at home, making this an opportunity for independent retailers to stock must have lines to meet customer demand as people rely on local convenience stores on their top up and lunchtime missions.”
Burchell also expects to see the PMP £1.25 ranges across brands drive spend up and offer value perception to customers.
“PMPs drive most sales in convenience stores and have become an increasingly preferred format with this channel. There will be continued price pressure amongst suppliers which will see retail service providers continue to increase, further emphasising the importance of promotions, POS and advertising,” he adds.
In convenience, PMPs are a must-stock for independent retailers – accounting for over 65 per cent of sales as they assure shoppers that they are getting good value for money [Circana 52w/e 17.02.24]. Sharing PMPs are now the dominant segment in snacks – making up 61 per cent of all sales.
Matt Smith, marketing director at Tayto Group UK, says Golden Wonder outperforms sharing PMPs (+21 per cent vs +6 per cent), having remained at £1 as others have increased price points due to inflationary pressures.
However, Andy Brown, director at Envis Snacks, which imports and supplies crisps and snacks brands Lorenz, Chipoys and Wanted, sees greater opportunities for non-PMP lines.
“The main stay for crisps and snacks will remain core range and getting the correct price mark packs in store, but increasingly over the last 12 months there are opportunities for extra revenue and margin from non-price mark lines allowing retailers to own their own margin,” he says.
Hot and spicy
Burchell reveals three major trends within the crisps and snacks segment that have been driving category sales over the past 12 months: hot flavours (hot sauce, spicy prawn cocktail, hot chicken wings etc.), healthier snacking and vegan/vegetarian.
“Key drivers to category growth are NPDs across all subcategories as flavours (especially hot) will drive interest in the category and sales,” he predicts.
The snack aisle is ablaze with hot and spicy options, and Tayto’s Smith says spicy snacks are not a fad – hot and spicy flavours have grown by 33 per cent in the last four years [Circana 52w/e 24.02.24].
“They represent a dynamic and evolving category, offering a delicious adventure for the taste buds. When it comes to hot and spicy flavours, it’s definitely heating up in the snack aisle,” he adds.
Brown, of Envis Snacks, also says there has been a trend towards hotter flavours to compliment the traditional best sellers, particularly in large city centre locations.
“In addition to some exciting hot new flavors for Curlys and X-cut we are delighted to bring both Crunchips Sour Cream and Roasted BBQ sauce in large sharing bag formats to the UK this year to ensure we have a great mix of flavors across the Lorenz range to suit all consumers” he says.
With the at home/big night in occasion set to be bigger than ever this year, Brown notes that the large sharing bags will have a significant role to drive sales.
“For retailers to maximise sales it important to stock a good selection of large sharing bags in the right places in store, potentially dual located near soft drinks and alcohol, as well as offering not just the classic flavours but interesting new flavours to stimulate additional purchase,” he says, suggesting Lorenz Crunchips WOW Jalapeno and Cream Cheese as a fantastic option to site along other products.
Smith points out that snack flavours often follow broader foodservice trends. For example, following the growth of Korean restaurants and dishes, flavours such as Katsu and Gotjuang have become familiar and have crossed into snacks, which offer a low cost and familiar format for consumers to try new flavours.
“Spicy notes add excitement and intrigue, keeping snackers coming back for more. New flavours tend to appear first in hand cooked crisps – where consumers are typically more experimental and the ‘premium’ nature lends itself to emerging flavours,” he says, adding that own label hand cooked crisps often lead the way in introducing new flavours and this is one of the drivers for the strong growth of own label hand cooked crisps.
These new flavours also attract younger consumers as they particularly seek out the latest trends.
“‘Spice challenges’ have been around for years, whether it be a Vindaloo curry or super-hot Takis. Most consumers, however, are looking for something more than just heat which is why Golden Wonder is launching a Chilli and Lime flavour into the already successful Transform-A-Snack £1 PMP range,” Smith says.
“With zingy lime that balances a punchy chilli kick, this flavour is certain to bring in more consumers to a range already in 40 per cent growth.”
HFSS regulations are another factor in the hot and spicy trend. Salt helps deliver high impact flavours and, despite improvements in flavour technology, many lower salt flavours struggle to taste as good. Spicy flavours, however, deliver better impact at lower salt levels and so they are a good solution for delivering great tasting non-HFSS snacks.
Retailer Bobby Singh
Meanwhile, PepsiCo is heating up crisp aisles with the launch of its new Extra Flamin’ Hot platform. The new three-strong range will add a deliciously intense twist to the nation’s much loved favourites Doritos, Walkers MAX and Wotsits Crunchy, answering the consumer demand for more varied spicy snacks.
UK consumers are hungry for spice, with 51 per cent saying they love spicy food and the UK’s desire for spice ranking as the second highest in Europe [Ipsos, 2022]. Utilising familiar household brands and a proven global platform to entice shoppers both in and out of store, PepsiCo said the launch of Extra Flamin’ Hot will help retailers maximise sales in this growing segment while also boosting footfall too.
The Flamin’ Hot platform is already a global sensation: it is Mexico’s second biggest PepsiCo brand, just behind Doritos. Leveraging success from across the world, the new Extra Flamin’ Hot range will deliver an elevated flavour experience on existing brands. The UK launch will also form part of a new consistent Flamin’ Hot global brand identity and voice, sitting alongside launches across Europe.
“Shoppers are looking for elevated snacking experiences and intense flavours, so we’re turning up the heat with this launch,” Rob Pothier, Doritos senior marketing manager comments.
“We can’t wait to bring Extra Flamin’ Hot to the UK, and given the response we’ve already seen worldwide, we’re certain shoppers will be just as excited. We know spicy snackers shop flavour ahead of brand, so we are encouraging retailers to merchandise the range together to form a striking purple block in-aisle to disrupt shoppers and drive sales. We’re sure that this new flavour experience will keep shoppers coming back for more.”
And, independent retailer Bobby Singh, owner of BB Nevison Superstore in Pontefract in West Yorkshire, once again managed to buzz up the community as well as social media, this time for the launch of Extra Flamin’ Hot, a celebration that saw the store’s sales “going through the roof”.
Talking to Asian Trader, Singh revealed how the recent activation done in collaboration with PepsiCo and Cirkle, has been a huge success.
“I am really proud of playing a central role in this journey from start to finish which turned out to be a great successful activation, along with retailers Atul Sodha, Priyesh Vekaria and Aman Uppal. This successful initiative was enabled due to excellent support by Circkle and obviously PepsiCo who provided with with all the POS and other stock,” he said.
Through Retailer Inner Cirkle, Singh was involved heavily with ideating, creating and putting together the whole in-store theatre.
“We were involved right from the start – from creating the POS. I am so proud to say that we have been giving feedback on various aspects like how there should be a fire extinguisher for extra effect.
“The whole setup and arrangement that we did in our store and the theatre that we created really helped in giving our customers an amazing customer experience as well as promoting the product. With all that happening, the products were just flown off the shelves, and it’s been a huge success.”
As a part of the theme, there was a themed firetruck parked outside Singh’s store to add to the fun element as well as amazing visuals. Soon it turned into an ideal post for selfies.
Singh also promoted the activation on social media, circulating the pictures of in-store theatre, which created quite a buzz and saw people travelling miles to visit the store. The whole activation saw 30 to 40 per cent increase in footfall.
“It’s been crazy on our social media handles. Demand of the product is constantly rising,” he said.
“What it’s done for me is that it transformed it into a destination store. We are seeing people coming from faraway places, even next town. They are actually traveling miles to see what’s happening in the store.”
“People are messaging us left, right, and centre wanting to know more and to say that the store is looking brilliant.
Healthy diversification
Martin Rice, operations director at Green Field Marketing, the snacks and savoury treats category in convenience stores is diversifying, with healthy alternatives, premium options, and international flavours leading the growth.
“The emphasis on on-the-go packaging, multipacks, and variety packs reflects the evolving preferences of convenience store shoppers. The impact of the growing demand for healthier products is evident in the rise of functional snacks and the shift towards better-for-you snacking options,” he says.
Green Field Marketing has been working with KP Snacks for more than ten years and has achieved double digit sales growth for the brand for seven consecutive years, and counting.
Rice says modern consumer behaviours have led to a few key segments driving growth in the snacks and savoury treats category, as he advises retailers to consider listing products that fall within these themes to maximise on sales opportunities.
“Consumers in 2024 are more health conscious than ever before and are increasingly choosing products not just on flavour and value, but calorie count,” he opines.
“Products such as organic snacks, protein bars and baked chips have all seen significant recent growth, which we’ve seen evidenced in our work with KP Snacks, whose 100kcal ranged has surged in popularity over the past two years. We expect to see this trend continue to grow.”
With the introduction to Natasha’s Law over the past five years, the demand for allergen-free options and vegan alternatives that clearly state their ingredients has increased significantly. Tash Jones, commercial director at potato farm and crisp manufacturer Fairfields Farm, says this something that can be achieved with every flavour of Fairfields Farm Crisps, with all products being vegan, gluten and dairy free.
“Fairfields Farm caters to every taste and dietary preference, with its crisp range including everything from crisp classics such as Cheese & Onion and Lightly Sea Salted, to meaty meat-free flavours such as the Roast Rib of Beef, and Bacon and Tomato. Moreover, each Fairfields Farm crisp flavour has an impressive shelf life of 16 weeks, resulting in not only less waste, but increased profitability.”
After a successful year of growing, harvesting, and trading during 2023, Fairfields Farm is in a strong position to continue its growth in 2024, due to recent investments and business wins. The business’s crisp sales have increased by 46 per cent and branded crisp sales have seen a remarkable increase of 70 per cent in 2023 when compared to 2022.
“Although a lot of that growth is through securing new stockists and routes to market, in one of our longest-term stockists – a convenience chain – we have still seen our sales soar by 28 per cent in that same period. That is largely fed by a growth in sharing bags, which is rapidly becoming a key part of our foothold in retail,” Jones reveals.
With two successive years of poor harvests nationally, she warns that there is a “real risk” to the summer’s crisps supply as potato quality and availability might dwindle ahead of the autumn’s harvest, and demand will soar with the key events of football and the Olympics.
“Fortunately, we grow our own, quality potatoes – and a bit more than we need! – so we feel comfortable that we are going to weather this. However, retailers may find themselves with availability issues so will need to keep an open mind on how to use that space should that arise,” she says.
“We also think that there will be an increased focus on ingredients in the coming year as consumers pay more attention to what they’re consuming, and our batch-cooked crisps – made with a policy of only using naturally derived ingredients – puts us in a good position to satisfy that snacking need.”
Jones recommends one or two brands like Walkers and Seabrooks, supplemented two hand-cooked crisp brands that offer something different to each other.
“For us, we focus on our sustainability message and simple but effective flavours. We also have a commitment to independent businesses like ours, and our brand has the benefit of not being listed in large supermarkets. This allows retailers pricing freedom for margins that work for them,” she says.
“Plus, as one of the fastest growing crisp brands in the UK retailers we appeal to those shoppers who like to go on ‘snacking safaris’ and actively seek out something new.”
The business is launching a new flavour to the Fairfields Farm roster, tapping into the nostalgia trend with a proper hand-cooked prawn cocktail flavour. Like all of Fairfields Farm’s flavours, it’s vegan and gluten free.
Another category that has seen a surge in popularity is high-end and gourmet snacks, as consumers are increasingly cutting back on the frequency of their snacking but looking to invest in higher quality products to really indulge themselves.
“This has seen sales of artisanal popcorn, upscale nut mixes and unique and unexpected flavour profiles grow. Brands are increasingly investing in these areas, such as KP Snacks innovating with its new Butterkist popcorn range, featuring Chocolate Orange and Crunchy Hazelnut Chocolate varieties,” Rice says.
He also stresses on the importance of stocking a carefully curated selection as snacks come in a variety of different sizes and formats, each of which tailored to different consumer profiles and snacking occasions.
“Single-serve and small-pack options are crucial for convenience stores, with these ‘on-the-go’ products catering for consumers looking for quick, portable snacks for their busy lifestyle. These often see the best pick-up when placed near the counter, encouraging impulse purchases as the customer is checking out for another purpose,” he explains.
“The value of offered by larger multipacks, especially for popular snacks like chips and crackers, means they continue to be essential for families or those looking for value-driven options, particularly with the difficulties of the current financial climate. Variety Packs are a key part of this, offering an assortment of different snacks in a single package that will cater to diverse preferences and encourage impulse purchases.”
Brand vs own label
Aslı Özen Turhan, pladis CMO, attributes the big nights in trend for the growing demand for larger pack sizes, a format currently experiencing double-digit growth (+15.1 per cent) [Nielsen, Total Coverage incl. Discounters, 52w/e 02.09.23].
“This comes as no surprise as inflation continues to impact spending habits and consumers prioritise value – making larger packs a top choice because of their lower cost per kilogram,” he says, adding that their Jacob's Mini Cheddars brand is perfectly positioned to take advantage of this trend, as 45 per cent of the product range comprises larger pack formats, available at affordable prices.
Turhan also notes that established brands are coming up trumps in the category as they’re known for offering both great taste and quality, which makes them feel like a worthwhile investment.
“That’s why it’s a wise move for independent retailers to prioritise stocking up on the top 10 brands in crisps and snacks,” he says.
“For instance, Jacob’s has nearly doubled its market share here. This is largely driven by the popularity of Jacob’s Mini Cheddars – which has climbed to the top 10 in Bagged Snacks, with sales exceeding £82 million – but also comes down to 170-year-plus legacy, during which we’ve been providing unbeatable taste, quality, and value.”
The brand has started the year with new “ultra-cheesy” varieties: Smoked Cheddar and Cheddar & Roasted Tomato, launched in February. Alongside the multipack format, Jacob’s Mini Cheddars Smoked Cheddar is available in a single-serve price-marked pack, exclusively for the convenience channel.
“This ensures that independent retailers can meet the needs of shoppers looking for a tasty cheesy snack for to add some extra flavour to lunchtime or to munch on-the-go,” Turhan says.
Dwelling further on the flavours, Turhan notes that the cheese flavours – especially Cheddar based options – continue to attract snack enthusiasts, consistently achieving strong purchase levels.
“To meet the fast-paced growth of our Jacob's Cheddars range, sales of which increased by 42.2 per cent last year, we introduced a timeless British flavour blend with Jacob's Cheddars Cheese & Pickle. On top of this, our new Jacob's Rosemary Mediterranean crackers have tapped into the increasing popularity of rosemary – one of the fastest-growing flavours in savoury biscuits – attracting a fresh group of savoury snack enthusiasts in the process,” he says.
The snacking major has also introduced a new non-HFSS recipe for its popular Jacob’s Crinklys, responding to the growing demand for lighter snack options. The new recipe preserves the brand’s popular flavours and signature oven-baked crunch, while reducing fat content by 30 per cent.
Turhan says the reformulation has helped propel Jacob’s Crinklys to new heights – reaching double-digit growth (+53 per cent) within just 12 weeks of the new recipe hitting shelves.
“To top it off, our Jacob’s Crinklys Cheese & Onion emerged as the second highest RSV non-HFSS launch of 2023, closely followed by our Salt & Vinegar variant,” he adds.
Tayto’s Matt Smith, however, says that there has been a significant shift towards own label products as price increases have coincided with a major squeeze on household budgets.
“Inflation is flattering the savoury snacks market with value up 11 per cent but units declining by two per cent,” he points out.
“All Crisps and Snacks sectors are seeing unit growth in own label with declines in brands. This shift has been most marked in hand cooked crisps where own label now accounts for 56 per cent of sales, up from only 42 per cent in two years.”
As a category with high penetration of 92.9 per cent, he says the key to true category growth is encouraging higher frequency of consumption.
“Promotions are one route as this encourages shoppers to buy on deal, getting snacks into cupboards at home where they will be on hand for lunch or in front of the TV in the evening,” he explains.
“Another solution is to encourage shoppers into impulse purchases. Pork scratchings are a perfect example as 27.6 per cent are bought on impulse and 49.8 per cent are consumed on day of purchase … never making it into the cupboard. Given most scratchings are consumed with a drink, by merchandising them with BWS and soft drinks, retailers are guaranteed to capture part of the fastest growing savoury snacks segment. We’ve made this easy to do as our top-selling Mr. Porky and Midland Snacks scratchings are all available in both SRP and clipstrips, so there is a solution for every store – no matter how big or small.”
Tayto has recently teamed up with one of Britain’s most iconic brands to launch Marmite Tortillas. Following the success of Marmite Crisps, the launch of Tortillas is a first for Marmite – sure to attract a younger consumer.
The new range, available in £1.25 PMP sharing bags from early April, delivers an authentic Marmite taste and the distinctive black packs feature the iconic Marmite logo for ultimate visibility in store.
The group has also launched a new variant, Chilli & Lime, to its Transform-A-Snack range, available in £1.25 PMP.
Demand for meat snacks
The jerky and biltong meat snacks category is one of the fastest growing categories in convenience, making Jack Link’s, the leading jerky brand in convenience, a high protein, high growth, high retailer profit opportunity.
“Total sales for the jerky and biltong meat snacks category are growing strongly in the convenience sector over the last 12 months with Jack Link’s driving the growth (Nielsen). This high growth may surprise many, but it is driven by more shoppers buying into the category who are willing to pay for the high protein benefits from brands they trust,” Shaun Whelan, convenience/wholesale and OOH controller at Link Snacks International (LSI).
The category has more than doubled in value over the last five years, growing in both value and volume, and has the headroom to double again as still less than one in ten households buy it.
“The jerky and biltong meat snacks category is becoming more popular in the convenience sector as we see more and more shoppers search out high protein, tasty convenient snacks that are seen to be healthier alternatives to traditional snacks. The opportunity to meet shopper demand and unlock additional sales is huge,” Whelan adds.
Jack Link’s Beef Jerky Original 25g has the highest unit rate of sale of any product in the category. The Beef Jerky is available in two other flavours – Sweet & Hot and Teriyaki.
Paul Stone, who runs the SPAR Oxford Road store in Manchester, says he has been “amazed” by the sales since adding Jack Link’s to his range of snacking products.
“We’ve been very surprised by how much of it we’ve sold. We have a number of student customers who look for a healthier snacking alternative and they seem to love Jack Link’s. In one week, and in only one store, we sell more than 100 packets,” he reveals.
“Siting Jack Link’s on the main fixture has also helped with sales as our customers know where to find them. Having Jack Link’s has driven incremental sales and profit.”
Simon Tuffill, manager of SPAR Parkfoot, West Malling, shares similar experience.
“We’ve had Jack Link’s products sited on fixture for a few months now and they are selling really well in the store. We are stocking three flavours – Hot, Teriyaki and the Original Beef Jerky,” he says. “These are great high cash profit products.”
As well as Beef Jerky, Jack Link’s also manufactures Biltong, and they have also launched Ham Snack. Ham Snack brings new shoppers into the category as ham is one the nation’s most favourite meats. Made of 100 per cent lean pork, Ham Snack has more than 50 per cent protein. What’s also significant is that Biltong and Ham Snack have no added sugar.
Meanwhile, chilled meat snacking has emerged as one of the fastest growing categories and plays a significant role in convenience, grocery, wholesale and cash & carry, meeting the demands of customers seeking easy, tasty options.
“Peperami significantly contributes to chilled meat snacking category growth, as more and more shoppers seek out tasty, filling and fun to eat, protein-kick meat snacks. Protein has become mainstream, with nearly one in every three households in the UK now buying a meat snack,” Whelan says.
Peperami, manufactured by LSI, is growing 7 per cent in value and accounts for nearly one out of every two meat snacks bought in the UK. The brand finished the year with 46 per cent market share and double digit growth at 11 per cent across all formats in the convenience sector. (Nielsen MAT to December 2023).
Whelan adds that Peperami PMPs are very effective at generating sales. New PMP £1.25 flashed 2 for £2 on Peperami sticks offer good value compared to standard sticks, driving value and return on sales.
“We ensure our Peperami PMP products are affordable for convenience retailers by supporting them with promotions and case sizes to keep the price points at the recommended retail prices,” he says.
He also asks retailers to stock tasty, convenient products that children love to eat to provide a protein kick to pep up snacking.
“Peperami is a must stock brand, as it is the nation’s favourite and bestselling meat snack. Stocking savoury meat snacks gives more choice to parents alongside confectionery ranges especially when Peperami will be eaten, avoiding wastage,” he notes.
Peperami offers a variety of pack formats. The iconic Peperami salami single sticks are ideal for on-the-go and lunchboxes. The single sticks come in a range of four core flavours: Original, Hot, Firestick and Chorizo.
Also, just launched to meet demand for different flavours is a new BBQ flavoured stick exclusive PMP in cash & carries. Due to the popularity of the single serve stick, they are also sold in multi-packs of five.
The second bestselling SKU in the whole category is Peperami Original Lunchbox Minis. RRP £3.00, they come in a pack of 10, clearly targeting the lunch box snacking occasion.
Based on the huge demand, Peperami has just launched a new BBQ Lunchbox mini pack. Made with 100 per cent pork and an enjoyable mix of smoky spices, they are packed with protein and just 50 calories per 10g mini stick – making them a perfect food-to-go item in larger convenience stores.
Peperami continues to successfully innovate to meet the fast-growing demand for protein meat snacks by stretching into Chicken. Peperami Chicken Bites come in single 50g packs ideal for convenience retailers meeting their shoppers needs for convenient, on-the-go tasty snacks to pep them up. Containing just 95kcal per 50g bag, Peperami Chicken Bites are available in two flavours – roasted and tikka.
