Even as the challenges with inflation seem to be moderating, the future remains uncertain, and consumers feel it. Positive societal development trends favouring snackification are supporting snacks value and volume growth; however, inflation-uncoupled growth, new political pressures, and consumers’ changing demands have led to a slowing of snack velocities. Savvy industry players are tapping into new investment areas to get ahead of potential growth deterrents and assure future success.
This report comes in PPT.
Snacks’ value forecast across most categories has seen slight contraction. Easing inflation, unfavourable dollar exchange rates, shifting demographics, and rising geopolitical tensions are contributing to a slowing value growth forecast across the majority of regions – impacting even the fastest-growth emerging regions.
Price sensitivity remains high for consumers despite economic resettling. New factors are expected to further challenge the potential for price stability (eg commodity constraints, tariffs, political regimes, etc). The matter of price, and value realisation, is ongoing, prompting actions from leading category players.
The majority of snacks categories have benefited from slower inflation growth as well as expanded distribution, and increased marketing and promotional activity; however, political pressures to reduce marketing and volume promotion capabilities and wider consumption competition, among other factors, will continue to challenge future volume growth.
Mergers and acquisitions, seasonal investments, private label, premiumisation, channel restrategisation, occasion expansion, novel formats and flavours, and community and cultural relevance are just a few areas where manufacturers are taking their portfolios to drive growth.
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