Global snack food sales reach $374bn annually, Nielsen reports

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Consumers globally spent $374bn on snack foods annually between 2013 and 2014, a year-over-year increase of 2%, according to a new global report released today by Nielsen. While Europe ($167bn) and North America ($124bn) make up the majority of worldwide snack sales, annual snack sales are growing faster in the largely developing regions. Asia-Pacific ($46bn) and Latin America ($30bn) increased 4% and 9%, respectively, while sales in the Middle East/Africa ($7bn) grew 5%.

“The competitive landscape in the snacking industry is fierce,” said Susan Dunn, executive vice president, Global Professional Services, Nielsen. “Demand is driven primarily by taste and health considerations and consumers are not willing to compromise on either. The right balance is ultimately decided by the consumer at the point of purchase. Understanding the ‘why before the buy’ provides the foresight necessary to deliver the right product to the right consumer at the right time.”

The Nielsen Global Survey of Snacking polled more than 30,000 online consumers in 60 countries to identify which snacks are most popular around the world and which health, taste and texture attributes are most important in the selection criteria.

The snack opportunity
Confections—which include sugary sweets, such as chocolate and gum—comprise the biggest sales contribution to the overall snack category in Europe ($46.5 billion).

What are the fastest-growing snack categories? According to Nielsen retail sales information, sales of dips and spreads, which include salsa and hummus, increased 6.8% in Europe. Sales of savoury snacks, which include crackers, rice cakes and pita chips, increased 21% in the last year in Latin America. Meat snacks, which include jerky and dried meat, grew 25% in the Middle East/Africa and 15% in North America. Refrigerated snacks, which include yogurt, cheese snacks and pudding, rose 6.4% in Asia-Pacific.

“Non-sugary snacks closely aligned with meal-replacement foods are showing strong growth, which signals a shift in a consumer mind-set to one focused on health,” said Dunn. “While conventional cookies, cakes and confections categories still hold the majority of snack sales, more innovation in the healthy snacking and portable food space is necessary to adjust to this changing dynamic.”

More than three-quarters of global respondents (76%) eat snacks often or sometimes to satisfy their hunger between meals or to satisfy a craving, and 45% of global respondents consume snacks as a meal alternative—52% for breakfast, 43% for lunch and 40% for dinner.

“There is a perception that snacks are intended more for in-between meals than for actual meal replacements,” said Dunn. “But busy, on-the-go lifestyles often dictate a need for quick meals, and many opt for fast food options that can be high in calories and low in health benefits. There is a massive untapped opportunity to gain market share in the nutritious, portable and easy-to-eat meal alternative market that snack manufacturers could fill.”

Snacking with a conscience
Nielsen’s study shows that more respondents around the world care about the absence of ingredients than the addition of them. “Consumers want snacks to stick to the basics,” said Dunn.

Snacks with all natural ingredients are rated very important by 45% of global respondents and moderately important by 32%—the highest percentages out of the 20 health attributes included in the study. The absence of artificial colours (44%), genetically modified organisms (43%) and artificial flavours (42%) are also rated very important. Caffeine-free (23%) and gluten-free (19%) snacks are very important for about one-fourth and one-fifth of global respondents, respectively.

Less is more for roughly one-third of global respondents who think it’s very important that snacks be low in sugar (34%), salt (34%), fat (32%) and calories (30%). One-fourth of those surveyed want snacks that have either low or no carbohydrates. Conversely, roughly one-third are looking for beneficial ingredients, rating fibre (37%), protein (31%) and whole grains (29%) as very important attributes in the snacks they eat.

Environmentally conscious consumers believe it is very important that snacks include ingredients that are sourced sustainably (35%), are organic (34%) and use local herbs (25%).