Remember when Lunchables first came out? They became popular and kids had to have them. That first wave of kids and snacking is growing up, and they are bringing their dollars with them.
On average, IRI’s “State of the Snack Industry” reports that consumers are still consuming 2.7 snacks per day, and the number of those consuming 3-plus snacks per day has increased over the last four years to 47 percent. If the trends continue to hold, an entire generation of consumers will be taking their snacking habits with them, which will create a generational tailwind of business. At a minimum, it would grow to $16 billion over the next five years.
That means snacking is growing at huge rates. Finding snacking options in nearly every department in your store will be important to meet your consumer’s needs.
Understanding the consumers and the category is vital if you want to capture sales within it.
Nearly everyone consumes at least one snack per day, with 90 percent of consumers saying they do. Those snacking twice per day is at 65 percent. And interestingly enough, 15 percent of people say they snack at least five times per day.
Afternoon snacking has long been the king of snacking times, but it’s the only time of day that has seen the numbers of consumers go down. Early morning snacking saw the biggest jump, from 18 to 26 percent of consumers. Morning snacking is at 35 percent, afternoon at 66 percent, evening at 57 percent and late evening snacking is at 40 percent of consumers.
Remember, your focus should still be on that afternoon snacking occasion, where the majority of the purchases will be made. These will be snacks that consumers can take to work with them or purchase if they come into your store during the lunch hour. Make it easy for them to find these options.
When we look at who is purchasing snacks, look to Generation X and Baby Boomers as the two biggest segments, each at 33 percent of the total snack buyers. Millennials purchase 23 percent and seniors purchase 11 percent of the snacks. While the demographics are fairly evenly split, 85 percent of the growth in snacking comes from Millennials and Gen Xers.
Make sure your snacking options fit your demographics. If you have plenty of Gen Xers and Millennials at your store, make sure you are offering fresh options, beverages as snacks, and flavors that are on trend. Your customers will notice and will buy.
Why has snacking become so popular? Fifty-seven percent of consumers want snacks with convenient portion sizes. This is shared across all ages. Currently, 35 percent of all snacks are 100-calorie packages or similar portions. Convenience and price are also key factors in snacking. Nearly three-quarters of snackers don’t plan their snacks. And 77 percent said price was important in what they buy. When you look at how you will sell snack items, there are four ways that your consumers snack: Wellness, permissible indulgence, true indulgence, and treats. While health is important, it can’t be the only type of snack you feature. Keep snack options within arms reach in every part of your store to match consumer demand.
Finally, think about how you entice shoppers to make you their snacking headquarters. Half of consumers say deals and offers linked to a loyalty program led them to buy. And remember, price is the leading factor in purchases, so take every advantage of web blasts, food show deals, and other offers coming to your stores. Being competitive at the shelf will help you win the snacker and keep them coming back.
NEXT STEPS: Ask your District Sales Manager for a list of snack items available in your division
