Quick stats
Snacking category has grown by 3.4% in value over the past three years, ahead of total packaged goods
Eighty-five per cent of consumers are snacking more or the same compared to pre-pandemic levels and this is driving basket spend.
People are also relying on trusted, well-known brands. Seventy-four per cent are sticking to brands they know, while 68% are relying on trusted brands rather than new ones.
Mondelez International has identified the five key themes independent retailers should be wary of that will impact the snacking category in 2022.
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First will be the growing rise in the number of people following a vegan diet, and the supplier said this is of increasing important in convenience. Meanwhile, reducing sugar “is one of the biggest consumer priorities for healthy eating”, said Susan Nash, trade communications manager at Mondelez added.
The implication for this is that rising demand for products marketed as ‘good for you’ with a focus on better wellbeing will mean retailers will need to signpost healthier options in-store more clearly to target these consumers.
Secondly, 90% of consumers are equally or more concerned about environmental issue after Covid-19 and this is affecting their purchasing habits. “Communicating tangible progress retailers have made and being aware of what they are stocking is important to this segment,” added Nash.
The price of food and inflation will also impact snack sales, with price cited as the number one reason why shoppers think they will become worse off in 2022. On the other hand, there are also several shoppers who are actively trading up and seeking out better-quality items. Some may also shop with budget in mind majority of the time, but be inclined to trade up on special occasions.
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“With this in mind, highlighting sell-outs, price-marked packs and value-driven messaging will remain key, but premium lines will grow thanks to disposable income for some,” says Nash.
Finally, occasions and connections make up the last two key themes. Twenty-seven per cent of shoppers would replace a takeaway with a convenience store delivery, with food-to-go a driving force within stores.
“Offering delivery and click and collect is key, while dialling up food-to-go with a credible offer will drive sales,” she added.
When it comes to building connections, “driving this through digital activity, events in store and community work will help facilitate relationships and add to category growth,” said Nash.
What’s happening in the chocolate category in convenience?
In the past year, chocolate sales have grown by 0.9% in independent stores, and by 1.3% in the past four weeks.
As we all know, single chocolate confectionery sales took a hit in 2020 as on-the-go occasions fell and impulse purchases declined. However, single lines still make up 25% of the chocolate category in independent stores and have the largest share of value sales. One element of single formats that didn’t suffer during the pandemic was duo bars, and this is driving the singles format, the supplier said.
While block chocolate is in slight decline by 6%, it is still a key format in this market, with big night in playing a big role. It currently makes up 17% of the chocolate category in convenience stores.
Overall, giving and sharing is seeing the largest segment growth and Mondelez said focussing on mini seasons, as well as Easter and Christmas, is the key to unlocking sales in this area.
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