With economic challenges showing signs of easing (eg lower inflation and less price pressure), the global snacks industry is embarking on a path to recover eroded growth. The industry will be faced with thinly stretched consumers who now carry a stronger discern for affordable upgrades and value. Accompanying political support is also orientating long-term growth towards healthier, more sustainable, advanced, and attainable indulgences.
This report comes in PPT.
Costlier foods coupled with more conscious consumers is sustaining value scrutinisation. Consumers are wanting to stay in the snacks category and are finding ways to do so by purchasing smaller, more affordable impulse products that mind budget and health, buying private label and finding new occasions, among other tactics.
The search for better quality nutrition and aspiration for healthier living continues to transform the snacking category. And as health concepts advance, more natural, earth-based foods are benefiting. Furthermore, recent legislation targeting ingredients commonly found in snacks, is set to spur growth of less clean label snacks.
Sustained movement of people across the world and increasingly diverse, younger generational cohorts with amplified desires for experience is growing multicultural flares in snacks. The year ahead will see brands incorporating more local twists into global classics, amplifying positioning within cultural communities and travelling into new, unexplored markets.
The rising use of social media and tech for food inspiration and purchase is leading to valuable insights and directions for manufacturer and brand strategies. Those players that are working to develop online campaigns and a strong digital presence with a concern for the consumer are benefiting from growing sales.
Consumers continue to grapple with the extra spend for some green claims while costs in the value chain continue to rise due to multiple factors (eg weather impact on commodities, transition to environmental packaging, etc). As the situation with the planet progresses, the snacks industry must address the costs of producing environmental, social and governance (ESG)-friendly snacks more collaboratively.
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