Introduction
Growing numbers of consumers are snacking, both at new times and in new locations, such as snacking when working late, on-the-go energy or performance boosts or light, informal snack meals. This behavior continues to offer new and surprising opportunities for impulse products as consumers re-evaluate their product choices in the light of new need states that are identified in this report.
Scope of this report
- A comprehensive analysis of morning, afternoon and evening snacking and non-alcoholic drinking occasions, by location, covering the US and Europe
- In-depth analysis of why changes are taking place in snacking and beverage markets and what consumer trends are influencing this
- Action Points pinpointing how to devise effective marketing strategies appealing to the changing attitudes and behaviors of European and US consumers
- New product development analysis highlighting how to exploit emerging trends through careful targeting of consumers need states
Research and analysis highlights
With new occasions emerging and a growing relevance of snacks in fulfilling modern nutritional requirements, the combined value of snacking in Europe and the US is expected to near US$150bn by 2009. Snacking out-of-home and day-time snacking occasions represent key growth opportunities.
Non-alcoholic drinks markets are also benefiting from more impulse purchases and the increasing emotive importance consumers place on consumption. A typical European spent US$25 per month on soft and hot drinks in 2004, compared to US$30 for a typical American consumer. On-the-go drinks consumption is a key growth area.
Consumers are demanding that snacking and beverage products become more charged, indulgent, fun, entertaining, sensual, adventurous and exotic. These factors are giving rise to the trend of experiential products. Consumers are also searching for more authentic products in relation to flavor profiles and production methods.
Key reasons to read this report
- Access unique snacking and non-alcoholic drinks market and consumption occasion data, segmented by value, location and country.
- Improve your marketing by understanding the mega-trends influencing consumers and accessing information on the latest global product development.
- Understand emerging unmet consumer needs such as health on-the-go and guilt-free indulgence and how need states vary by occasion.
CHAPTER 1 EXECUTIVE SUMMARY
- Hot topic
- The future decoded
- Snacking and beverage markets are growing
- Increased snacking and beverage frequencies continue in Europe and the US
- On-the-go snacking and drinking will become even more prevalent in the future
- Main meal and snack occasions are becoming more interchangeable
- Snacking and beverage consumption often occurs for emotive reasons
- Consumers increasingly seek healthy snacks and beverages
- Sensory and homing trends drive impulse needs
- A need for individualism is affecting snacks and drinks needs
- Occasion need variances characterize snack and beverage purchases
- Action points
CHAPTER 2 THE FUTURE DECODED
- Introduction
- Important definitions and report coverage
- TREND: snacking and beverage markets are growing
- Time pressures and "grazing" are driving growth
- The value of non-alcoholic drinks markets are also rising
- Consumers snack consumption frequencies are growing
- Snacking out-of-home is growing more than in-home snacking
- Evening snacking is the most valuable occasion
- Consumers beverage consumption frequencies are growing
- TREND: snacking and beverage occasions increasingly occur on-the-go
- On-the-go snacking and drinking occasions are increasing
- On-the-go products are being consumed across a broader range of occasions
- On-the-move consumption is also growing in Europe and the US
- TREND: main meal and snack occasions are becoming more interchangeable
- In-between meal occasions are increasingly filling light meals
- Flexi-eating is an important driver of larger snacks in-between main meals
- Core mealtimes increasingly resemble snack occasions
- This trend is demonstrated by the growing number of light main meals
- INSIGHT: snacking and beverage consumption often occurs for emotive reasons
- Alleviating stress is an important motivation, especially for snacks
- The struggle to achieve a work/life balance is evident among consumers
- Consumers seek indulgence from comfort products in response to stress
- Consumers are increasingly seeking therapeutic anti-stress products as treats
- Boredom alleviation is also a highly relevant treating motivation
- INSIGHT: consumers increasingly seek healthy snacks and beverages
- Consumers health needs and behaviors are getting more diverse
- Consumers increasingly demand health and convenience
- The number of health-on-the-go occasions is increasing
- Numerous barriers still exist preventing healthy and convenient purchases
- Gender variances exist in health-related attitudes and behavior
- INSIGHT: sensory and homing trends drive impulse needs
- Consumers are seeking more intense consumption experiences
- There is a greater desire to try new things and experience new sensations
- Consumers are seeking more intense, bolder flavors
- However, traditional flavors and formats are also highly relevant to innovation
- The importance of offering the right flavor profile cant be underestimated
- Knowledgeable consumers are demanding more authentic foods
- Demand for authenticity means that specific details increasingly matter
- Consumers are premiumizing their food and drink occasions
- Consumers are increasingly indulging with premium food and drinks
- There has been an in-filling of many snacking and beverage markets
- Consumers seek indulgences that replicate on-trade experiences and quality
- Health and wellness has a big impact on trading up tendencies
- INSIGHT: individualism is affecting snacks and drinks needs
- The notion of having it your way is becoming more important
- INSIGHT: occasion specific need variances characterize snack and beverage purchases
- Consumers food and drink needs vary considerably by daypart
- Snacking is often time specific and varies by weekday
- Snacking peaks during late morning, mid-afternoon and mid-to late evening
- Days of the week also have a considerable impact
- Snacks and drinks purchases are often combination orientated
- Conclusions
- Successful innovations must focus on two or more mega-trends
CHAPTER 3 ACTION POINTS
- Introduction
- Identify and target the key snacking/indulgence moments
- Communicate occasion specificity in promotions
- Consider developing a moments orientated campaign
- Make products and communications synonymous with consumer emotions
- Target consumers trading-up tendencies
- Develop more premium and super-premium variants
- Appropriate pricing is an important consideration
- Align premium and super-premium variants as indulgent stress relievers
- Target older consumers higher incomes and tendencies to premiumize
- Ensure that quality is accurately depicted as a core brand value
- Communicate superior taste above all else
- Emphasize a products roots/heritage to create favorable perceptions
- Develop artisanal, hand-crafted variants
- Develop packaging formats which ooze sophistication and taste quality
- Adopt experiential marketing to leverage sensory appeal
- Bring brands to life through experiential campaigns
- Use language and slogans to emphasize experiential qualities
- Try to relate them to the specific consumption experience
- Experiment with innovative flavor combinations
- Again, promote how the flavors enhance the consumption experience
- Make everyday staple foods more interesting
- Make use of limited editions and seasonal flavors
- Act upon consumers growing health concerns
- Promote impulse snacking as a positive part of daily nutrition
- Cut bad ingredients and focus on healthy production methods
- Build trust by demonstrating a long-term commitment to health
- Utilize event marketing, but demonstrate long-term commitment to campaigns
- Alliances with health organizations can help send the right message
- Help consumers make informed, healthier food and drink choices
- Become an information resource for healthy living
- Embrace interactive media in a more creative way
- Develop recognizable and trustworthy labels
- Extend brands with already established health credentials
- Promote them as being brands/products that consumers can trust
- Continue to recognize gender specific needs
- Consider targeting males through their partners
- Target healthy lifestyle venues for sampling
- Promote healthy options as a cooler, more iconic alternative
- Use tongue-in-cheek communications to maximixe impact
- Target health and convenience by offering health on-the-go
- Offer positive nutrition by incorporating functional ingredients
- Developing products with beauty benefits exemplifies positive nutrition
- Target the growing trend for light meals/larger snacks
- Offer more filling hot food and drinks
- Make substantial light meal fills available in convenience channels
- Pursue opportunities in liquid nutrition
- Target new occasions with packaging modifications and food and drink co-promotions
- Adapt packaging formats to drive occasion growth and attract new users
- Explore co-purchasing opportunities through co-promotions
CHAPTER 4 APPENDIX
- Supplementary data
- Definitions
- Research methodology
- References
- Industry Sources
- Government Sources
- News Sources
- How to contact experts in your industry
List of Tables
- Table 1: Key characteristics differentiating impulse and planned food purchase occasions
- Table 2: The value (total and per capita) and growth of snacking, by country, 2004-2009 (US$bn and €bn)
- Table 3: The value (total and per capita) and growth of soft and hot drinks markets, by country, 1999-2009 (US$bn and €bn)
- Table 4: The number of main meal and snacking occasions (billions) in Europe and the US, 2004-2009
- Table 5: The number of daily per capita and yearly snacking occasions, by country, 2004-2009
- Table 6: The number of annual in-home and out-of-home morning, afternoon and evening snack occasions, by country, 2004-2009
- Table 7: The value and average number of daily European and US snack occasions, by occasion, per person, by country, 2004-2009
- Table 8: The average number of daily and yearly non-alcoholic drinking occasions, by country, 2004-2009
- Table 9: Number of annual and per person on-the-go eating occasions (billions), by country, 2003-08
- Table 10: Number of annual and per person non-alcoholic on-the-go drinking occasions (billions), by country, 2003-08
- Table 11: Total on-the-move food and drink market value by country ($ millions), 1999-2009
- Table 12: Tesco capitalizing on the hot-drinks to-go opportunity
- Table 13: The number and percentage of European and US in-between mealtime occasions that are light meals (billions), by daypart, 2003-2008
- Table 14: Products targeting the interchangeability of meals and snacks
- Table 15: The number and percentage of light breakfast, lunch and evening meal occasions (billions), by occasion and country, 2003-2008
- Table 16: The number of European and US snack and hot & soft drink treating occasions consumed in response to stress, 2003-2008
- Table 17: Examples of food and drink products offering therapeutic and relaxing indulgence
- Table 18: The number of European and US snack and hot & soft drink treating occasions consumed in response to boredom, 2003-2008
- Table 19: Insights based around the types of health and dietary benefits Europeans and Americans are seeking
- Table 20: Per head and total European and US healthy on-the-go eating occasions (billions), 2004-2009
- Table 21: Per head and total European and US healthy on-the-go drinking occasions (billions), 2004-2009
- Table 22: Why women are important consumers to target for healthy snacking and beverage products
- Table 23: Examples of snack and beverage products adding intensity and novelty to the consumption experience
- Table 24: European and US consumer attitudes concerning new and exotic flavors in snacks and drinks, 2004
- Table 25: Products which capitalize on the growing consumer demand for authentic consumption experiences
- Table 26: Number of European and US premium food and drink occasions (millions), 1998-2008
- Table 27: Examples of offering at-home indulgences that replicate on-trade quality
- Table 28: Examples of snack and drink products and concepts targeting the individualism trend
- Table 29: Examples of premium snacking and beverage variants
- Table 30: Examples of leveraging country of origin or association branding
- Table 31: Examples of effective descriptions that promote the indulgence properties of products
- Table 32: Examples of performance boosts for active individuals
- Table 33: Examples of innovative healthy snacking alternatives
- Table 34: Utilize healthy and trusted brands to target new markets and occasions
- Table 35: Examples or products with gender-specific positionings
- Table 36: Southern Comfort Tea: adding fun and image credentials to a stodgy category
- Table 37: European, Asian and North American examples of impulse products offering beauty benefits
- Table 38: Global examples of innovative liquid nutrition offerings
- Table 39: Examples of food and drinks manufacturers adapting packaging formats to maximize product usage
- Table 40: Nutella: co-selling snacks and drinks together
- Table 41: The size and growth of the overall confectionery market attributable to snacking occasions, by country (US$bn and €bn), 1999-2009
- Table 42: The size and growth of European and US bakery markets attributable to snacking occasions (US$bn and €bn), 1999-2009
- Table 43: The size and growth of the overall savory snack market attributable to snacking occasions, by country (US$bn and €bn), 1999-2009
- Table 44: The size and growth of European and US dairy markets attributable to snacking (US$bn and €bn), 1999-2009
- Table 45: The size and growth of the overall hot drink market, by country (US$bn and €bn), 1999-2009
- Table 46: The size and growth of the overall soft drink market, by country (US$bn and €bn), 1999-2009
- Table 47: Definitions used in this report
List of Figures
- Figure 1: The increasing number of skipped meals is clearly evident and contributes to a growing demand for larger in-between meals
- Figure 2: A synopsis of the convenience and health-related factors inhibiting health on-the-go occasions
- Figure 3: Sensory and homing mega-trends have a big impact on consumers indulgent snacking and beverage behavior
- Figure 4: The health and wellness trend has two key implications for consumers indulgence habits
- Figure 5: Consumer motivations for snacking and beverage consumption vary by daypart
- Figure 6: Percent distribution of US and European snacking occasions at different time intervals, 2004
- Figure 7: A synopsis of consumer trends regarding future snacking and beverage occasions and how to target them
- Figure 8: The different levels of experiential marketing can be used to capitalize on the sensory mega-trend
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