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SNACKS NEW NEEDS IN EVOLVING SNACK MARKET With demand for innovation around health rising rapidly and snack shoppers seeking ever more convenient options, the snacking market is undergoing major changes. ABy Shopper Intelligence Senior Insight Director David Shukri. s competition for snacking spend intensifies, it’s vital that retailers and suppliers stay close to shoppers’ evolving needs and preferences. So, what are shoppers looking for when they buy snacks, what is driving their purchases and how can you best influence them? An evolving shopper profile Not only are snacking categories changing, but so too are snack shoppers. In grocery now, just 13 per cent of them are aged under 34, which is down from 24 per cent in 2017. This indicates how many alternatives younger shoppers now have available to them. Last year Shopper Intelligence found growing numbers of millennials were using the convenience channel for their snacking needs. QSRs, cafes and even home delivery services are also increasingly part of the snacking repertoire for many people. It’s little surprise then that two in three snacking shoppers either live alone or in a mature household, while younger families under-index in these categories. Given those with younger children tend to have a more extensive range of occasions and missions to cater for, they could and should be a target for future growth. What’s more, trip frequency for younger families is considerably higher than average. Forty-eight per cent shop for snacks more than once a week, compared with just 26 per cent of mature households. Hence, there’s a strong case for this group to feature more prominently in category development plans. A role to play In terms of the role snacking plays for retailers, brands should be aware of several crucial dynamics. Overall, snacking is a solid spend driver and shoppers agree most strongly with the following statements when they buy from snacking categories: • I’m often persuaded to buy extra product in this category. • I might sometimes buy an additional item because I want to try something new or different. • I sometimes buy just because I feel like it at the time. The third of these statements scores the highest with Coles and Woolworths shoppers, so it’s very important to invest in strong displays that tempt shoppers and speak to specific occasions or need states, while also encouraging them to trade up through volume. At the same time, newness and innovation also have a role to play and should not be overlooked. Top five snacking categories for ‘I sometimes buy just because I feel like it at the time’: 1. Chocolate bars. 2. Chocolate biscuits. 3. Cookies. 4. Lolly bags. 5. Chocolate bags. Top five snacking categories for ‘I might sometimes buy an additional item because I want to try something new or different’: 1. Healthier snacks. 2. Cookies. 3. Premium/entertaining crackers. 4. Multipack biscuits. 5. Biscuits - creams. Forty-six per cent of snacking purchases are unplanned, compared with the grocery average of just 29 per cent. If it were a category, that would make snacking the 31st most impulsive in-store out of 208. The in-store environment is clearly pivotal, and the most common trigger for unplanned shoppers is either a display or a special offer. Invest in what matters most The direction of travel for snacking is positive. Overall satisfaction is improving year on year and now sits at 59 per cent. By comparison, total impulse sits at 58 per cent and the average for all categories is 56 per cent. In price, assortment and execution measures, snacking over-indexes against both benchmarks, yet in terms of product related metrics, it’s underperforming. Authenticity and environmental impact are key areas that require further attention. Snacking performs worse on these measures in both the total-impulse department and the total store. Despite being relatively less important to snack shoppers, their significance has risen more than that of any other factor over the last three years. In terms of authenticity, 39 per cent of snacking shoppers want to see more original, unique or traditional ranges, while 32 per cent believe Australian grown or manufactured products are key. When it comes to the environment, snack shoppers are clear on what they would like to see improve: 75 per cent say packaging is the most important aspect for businesses to address, compared with an average of 59 per cent across all categories. Competition in snacking is likely to increase in the coming years as shoppers continue to stock up less and consume more immediately. While there’s plenty to be optimistic about in grocery, retailers and brands must keep the right levers and drivers in focus if they’re to increase their chances of success. Ultimately, those that best put the shopper at the heart of their plans will be in the best position to win. About Shopper Intelligence Shopper Intelligence is the only partner to unlock how and why shoppers buy, then continuously and objectively benchmark every category and every retailer. With a combination of trusted expertise and pioneering techniques, Shopper Intelligence provides the most simple and actionable shopper insights in the industry. For more information contact info@shopperintelligence.com.au. 48 RETAIL WORLD APR, 2020