The Salty Snack Industry Under the Looking-glass
A positive development is observed in the salty snack industry, partly because of the wide range of goods that are reasonably priced and accessible across Europe. According to market research firm Mintel, over 80% of customers in the UK and Germany snack in between meals, indicating that Europe may have its snacking marketplaces.
On the other hand, there are barriers to the adoption and uptake of salty foods. Supply chains are impacted by climate change in agriculture, for instance, leading to shortages of potatoes.
While consumers of salty snacks continue to prioritize price, they are increasingly seeking out new and healthier flavors. To accommodate changing customer tastes, particularly when it comes to flavor and health-conscious products, manufacturers must also adapt to the “constant need for innovation.” The business uses premium ingredients and cutting-edge production methods to strike a balance between the need for enhanced nutritious value and exceptional flavor.
Even if the cost of salty snacks is moderate when compared to other items, growing costs have changed how customers eat and buy, leading them to demand advantages that outweigh costs.
Budget snacks are going to be big in 2024, according to Mintel. To negotiate the influence of growing inflation on consumer purchasing patterns, global conflicts and climatic events on behavior, and demands for new product development, brands must adapt their formulas.
Saving money is a typical response to the state of prices. By 2024, experts may anticipate seeing more people buy own-label items, snack multipacks, special discounts, and merchandise from bargain stores. More than half of snackers in the UK have cut back on their snack intake due to price increases, while almost half of Germans (45%) think that salty snacks should not be a top priority when packing shopping baskets.
Increasing costs for commodities and transportation have compelled businesses to pass these costs along to consumers through price increases, which undermines their capacity to communicate the value of their products. However, consumers’ reduced time spent on activities outside the house is also correlated with tighter budgets and lower discretionary income. According to Mintel, brands may leverage this chance to appeal to customers’ late-night snacking purchases.
Since the COVID-19 epidemic, consumers’ concerns about diet and health have increased. Consequently, there is a growing demand from customers for snacks that promote health, such as those with natural ingredients, low sugar content, and high fiber content. It is anticipated that the European market for salty snacks will keep expanding in 2024, with an emphasis on sustainability and health.
Retailers may rethink what a snack is and what snacking might mean to customers by using a creative approach in advertising and product creation, according to Mintel. Flexibility and the capacity to grow to satisfy customers’ needs at different times are essential.You can read the rest of this article in your complimentary e-copy of Issue 3 of Potato Business Digital 2024 magazine, which you can access by clicking here.
