| KN15325 |
| KEY NOTE SNACK FOODS PLUS : JANUARY 2005 |
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This report covers: bagged snacks, crisps, other savory sanacks, nuts, baked snacks, plain & savoury biscuits, eating habits, sociable sharing, product innovation, spicy flavours, health issues, fat content, calorie intake, additives, salt, potato crisps, potato sticks
| Executive Summary |
| 1. Market Definition |
| REPORT COVERAGE |
| MARKET SECTORS |
| Bagged Snacks |
| Crisps |
| Other Savoury Snacks |
| Nuts |
| Baked Snacks |
| Plain and Savoury Biscuits |
| Savoury Snack Biscuits |
| MARKET TRENDS |
| Eating Habits |
| Upmarket Products and Flavours |
| Packaging |
| Healthy Products |
| Retail Consolidation |
| ECONOMIC TRENDS |
| Gross Domestic Product |
| Table 1: UK Gross Domestic Product at Current Prices (£m), 1999-2003 |
| Inflation |
| Table 2: UK Rate of Inflation (%), 1999-2003 |
| Household Disposable Income |
| Table 3: Household Disposable Income per Capita (£), 1999-2003 |
| Population |
| Table 4: UK Resident Population Estimates by Sex (000), Mid-Years 1999-2003 |
| Unemployment |
| Table 5: Actual Number of Unemployed Persons in the UK (million), 1999-2003 |
| MARKET POSITION |
| The UK |
| Table 6: Expenditure on Snack Foods† as a Percentage of Household Expenditure on Food and Non-Alcoholic Drink (£m and %), 1999-2003 |
| Europe |
| 2. Market Size |
| THE TOTAL MARKET |
| Table 7: The UK Market for Snack Foods by Value at Current Prices (£m at rsp), 2000-2004 |
| BY MARKET SECTOR |
| Table 8: The UK Market for Snack Foods by Sector by Value at Current Prices (£m at rsp), 2000-2004 |
| Bagged Snacks |
| Crisps |
| Other Savoury Snacks |
| Nuts |
| Baked Snacks |
| Plain and Savoury Biscuits |
| Savoury Snack Biscuits |
| 3. Industry Background |
| RECENT HISTORY |
| NUMBER OF COMPANIES |
| By Turnover |
| Table 9: Number of UK VAT-Based Enterprises Engaged in the Processing and Preserving of Potatoes by Turnover Sizeband (£000 and number), 2004 |
| By Number of Employees |
| Table 10: Number of UK VAT-Based Local Units Engaged in the Processing and Preserving of Potatoes by Number of Employees, 2004 |
| REGIONAL VARIATIONS IN THE MARKETPLACE |
| DISTRIBUTION |
| HOW ROBUST IS THE MARKET? |
| LEGISLATION |
| KEY TRADE ASSOCIATIONS |
| Snack, Nut and Crisps Manufacturers' Association |
| European Snacks Association |
| Snack Food Association |
| ADVISORY AND INFORMATION SERVICES |
| Food Standards Agency |
| European Food Safety Authority |
| The Food Commission |
| Food and Drink Federation |
| 4. Competitor Analysis |
| THE MARKETPLACE |
| MARKET LEADERS |
| Burts Potato Chips Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Golden Wonder Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Procter & Gamble Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Red Mill Snack Foods Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| United Biscuits (UK) Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| Walkers Snack Foods Ltd |
| Company Structure |
| Current and Future Developments |
| Financial Results |
| OUTSIDE SUPPLIERS |
| Potatoes |
| Snack Pellets |
| Flavourings |
| Processing Equipment |
| Packaging and Display |
| MARKETING ACTIVITY |
| Main Media Advertising Expenditure |
| Table 11: Main Media Advertising Expenditure on Potato Crisps and Snacks and on Dips/Dipper Snacks (£000), Years Ending June 2003 and 2004 |
| Table 12: Main Media Advertising Expenditure on Potato Crisps and Snacks by Brand (£000), Year Ending June 2004 |
| Recent Advertising Campaigns |
| Walkers |
| KP Snacks |
| The Jacob's Bakery |
| Sid the Slug |
| Other Promotional Activities |
| Sponsorship |
| Walk-O-Meter |
| Charitable Support |
| TRADE EXHIBITIONS |
| International Food and Drink Exhibition |
| Snackex |
| Snaxpo |
| 5. Brand Strategy |
| THE LEADING SNACK BRANDS |
| Walkers Snack Foods |
| Procter & Gamble |
| United Biscuits |
| Golden Wonder |
| Red Mill Snack Foods |
| BRAND PENETRATION |
| Table 13: Penetration of Selected Snack-Food Brands (% of adults buying regularly), 2002 and 2004 |
| By Sex |
| Table 14: Penetration of Selected Snack-Food Brands by Sex (% of adults buying regularly), 2004 |
| By Age |
| Table 15: Penetration of Selected Snack-Food Brands by Age (% of adults buying regularly), 2004 |
| By Social Grade |
| Table 16: Penetration of Selected Snack-Food Brands by Social Grade (% of adults buying regularly), 2004 |
| By Region |
| Table 17: Penetration of Selected Snack-Food Brands by Region — the South of England and Wales (% of adults buying regularly), 2004 |
| Table 18: Penetration of Selected Snack-Food Brands by Region — the Midlands, the North of England and Scotland (% of adults buying regularly), 2004 |
| 6. Strengths, Weaknesses, Opportunities and Threats |
| STRENGTHS |
| WEAKNESSES |
| OPPORTUNITIES |
| THREATS |
| 7. Buying Behaviour |
| CONSUMER PENETRATION |
| Potato Crisps and Potato Snacks |
| Table 19: Penetration and Frequency of Eating Potato Crisps and Potato Snacks (% of adults), March 2004 |
| Packeted and Tinned Nuts |
| Table 20: Penetration and Frequency of Eating Packeted and Tinned Nuts (% of adults), March 2004 |
| 8. Current Issues |
| CORPORATE ACTIVITY |
| United Biscuits |
| Procter & Gamble Company |
| Golden Wonder |
| Red Mill Snack Foods |
| The Jacob's Bakery |
| NEW PRODUCTS |
| Walkers Snack Foods |
| Golden Wonder |
| Red Mill |
| Intersnack |
| Trigon Snacks |
| KP Snacks |
| Jonathan Crisp |
| AWARDS |
| Great Taste Awards |
| HEALTH MATTERS |
| Sodium |
| Fat |
| Acrylamide |
| Allergies |
| Colourings and Preservatives |
| ADVERTISING TO CHILDREN |
| 9. The Global Market |
| OBESITY — A GROWING PROBLEM IN EUROPE |
| SELECTED OVERSEAS COMPETITORS |
| Arnott's |
| C&C Group PLC |
| Groupe Danone |
| Intersnack Knabbergebäck GmbH |
| Kraft Foods Inc |
| PepsiCo Inc |
| 10. Forecasts |
| INTRODUCTION |
| Population |
| Table 21: The Forecast UK Population by Age Group (000), 2005, 2007 and 2009 |
| Unemployment |
| Table 22: Forecast Number of Unemployed Persons in the UK (million), 2004-2008 |
| Gross Domestic Product |
| Table 23: Forecast Growth in UK Gross Domestic Product in Real Terms (%), 2004-2008 |
| FORECASTS 2005 TO 2009 |
| Table 24: The Forecast UK Market for Snack Foods by Sector by Value at Current Prices (£m at rsp), 2005-2009 |
| FUTURE TRENDS |
| Fat Content |
| Low-Carbohydrate Products |
| Functional Foods |
| Flavours |
| Growing Sales in Eastern Europe |
| The Food Industry's Future Responsibility |
| 11. Company Profiles |
| Golden Wonder Ltd |
| Red Mill Snack Foods Ltd |
| United Biscuits (uk) Ltd |
| Walkers Snack Foods Ltd |
| 12. Company Financials |
| 13. Further Sources |
| Associations |
| Publications |
| General Sources |
| Government Sources |
| Other Sources |
| Bonnier Information Sources |
| Retail sales of snack foods were worth an estimated £2.35bn in 2004. For the purposes of this report, these products are defined as crisps, other savoury snacks, nuts, plain and savoury biscuits, and savoury snack biscuits. Requiring no preparation and on sale in a wide variety of retail outlets, these items are ideally placed to take advantage of the trend away from the traditional three meals a day. However, this trend has also led to the development of snack products by other food sectors, such as cheese and cereals, some of which are perceived as healthier than traditional savoury snacks. |
| The effect of diet on health is, of course, today's big story. In May 2004, reporting on what has been called an `obesity crisis', the Commons Health Select Committee said that Ministers must be prepared to intervene if voluntary agreements to reduce levels of salt, sugar and fat in foods, and to abolish `pester power' marketing techniques aimed at children, fail to deliver results. For their part, manufacturers may feel that they are being demonised when it is people's overall lifestyles that are to blame for rising obesity levels. However, there is no doubt that the future of the snack-foods industry is beset with potential obstacles to growth, including the cost of developing substitutes for fat, sugar and salt, moves to reduce the availability of snacks and a possible ban on advertising food to children. |
| Smaller UK operators may find it difficult to weather these problems in an industry dominated by Walkers Snack Foods, which is backed by the financial strength of PepsiCo and has benefited from highly successful advertising campaigns featuring the television presenter and former footballer Gary Lineker. Ongoing innovation in the industry is essential, whether it takes the form of new, ever more exotic flavours, improved packaging or gimmicks such as children's snacks that change the colour of the consumer's tongue. |
| Penetration of potato crisps and other potato snacks is high: BMRB International's 2004 Target Group Index (TGI) survey found that 88.8% of adults had eaten them in the preceding 12 months. Snack foods are generally more popular among young people than among their elders, so the fact that the UK has an ageing population might be expected to adversely affect future demand. However, the differences in eating habits between the age groups are likely to become less marked as the post-war generation, which grew up with crisps and similar products, reaches retirement age. |
| Ultimately, crisps and other savoury snacks are viewed by consumers as a treat, so although the public may be bombarded with advice about healthy eating, they are unlikely to deny themselves when it is time to choose their snacks. At the moment, reduced-fat and reduced-salt varieties are likely to be the choice of those who would not normally consider buying standard products. In the future, however, given the current pressure from health campaigners, it is possible that healthy products will be the only option. |
Text © 2005 Key Note
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Last updated by Amanda Porteous 2005
