Crisps, snacks and nuts are currently the fastest growing category in the independent convenience sector, at +18.6% YOY growth on a 52 w/e basis (to 10 Sept 2023), according to TWC.
Within crisps, snacks & nuts, sharing bags account for almost 65% share. This sub-category is driving strong growth in independent convenience stores at +25.9 YOY.
“Snacks are a huge driving force behind growth in the sharing bag sub-category, accounting for >65% share and growing at a rate of +28% YOY,” comments Sarah Coleman, Director of Communications at TWC. “The Snack category includes corn-based products such as Doritos (16% share) and Hula hoops (11% share, growing at +45% YOY).”
Mike Chapman, Head of Wholesale at Walkers, comments: “Snacking remains a huge part of day-to-day UK life, with the total crisps, snacks and nuts segment now being worth £3.89bn and growing at +10.3% (Nielsen). Crisps and snacks are now the second biggest segment in the category, making up 44% of snacking occasions (PepsiCo).”
Within the convenience channel, crisps and snacks have continued to be a critical sales driver for retailers. In turn, the total savoury snacking category in independent and symbol stores is worth £574m and is growing +17.2% (Nielsen). For retailers, this means the category is well positioned for growth. There is a real opportunity for retailers to capitalise on the innovations being launched within the market which answer to consumer demand, in order to see greater returns from the savoury snacking market.
“The Big Night In occasion remains as popular as ever, as more people are entertaining at home, with 45% finding happiness in small, happy moments with friends and family (Kokoro),” adds Chapman. “We’re seeing treat missions are on rise, as shoppers look to make the most of their Big Night In, with segments such as Soft Drinks and Crisps, Snacks & Nuts all increasing in importance with Convenience shoppers (Lumina). There is a huge opportunity for retailers to cater to the Big Night In Mission through offering more premium options, and this applies to snacks too.”
Additionally, out of home snacking has returned for busier consumers, with 19% (+5pp) share of all snacking occasions (Bolt). There is a significant opportunity here for retailers to capitalise on lunchtime and on-the-go occasions and encourage spend – particularly through meal deals, which can offer both value and convenience to shoppers on the go, as well as act as a treat for hybrid workers.
“Health has become an important purchaser driver over the last year and is the fourth most important need for snack shoppers (Kantar),” says Chapman. “With health a rising consideration, shoppers are looking for their favourite flavours while choosing smarter snacking options. Through some of our most recent innovation we’ve been able to maximise taste through some of the nation’s favourite brands. By stocking non-HFSS products like our Walkers 45% Less Salt, Walkers Baked and PopWorks ranges, retailers can also effectively merchandise end of aisles to tap into demand these products and still offer punchy and popular flavours.”
Enjoyment is the number one driver of choice when buying crisps and snacks (Kantar), so it’s important that wholesalers are offering not just well-loved core brands but also a wide range of bold and different flavours that will appeal to retailers looking to add exciting flavours instore. To cater to this demand, PepsiCo has launched a number of taste-led NPD over the last year, including Doritos Loaded Pepperoni Pizza flavours, Burger King Flame Grilled Whopper® Doritos and Walkers MAX Strong Hot Sauce Blaze and Fiery Prawn Cocktail – all of which are full of flavour but also non-HFSS. Earlier in the year, Doritos, the number one tortilla chip brand in the UK (Nielsen), and Burger King®, home of the Whopper®, launched Flame-Grilled-Whopper® flavour Doritos. Tapping into consumer needs for bolder flavours and taste experiences, the new snacks offer an uncanny likeness to The Whopper® and its iconic flavour, whilst being non-HFSS.
Matt Collins, Trading Director at KP Snacks, comments: “CSN is a strong and resilient category with huge scale, worth over £4.1bn and growing in value +13.6% (NielsenIQ).”
In difficult financial times, the CSN category prospers as shoppers look for affordable tasty treats, representing a critical opportunity for retailers to grow footfall and sales. Treat occasions are growing in C&I, currently making up 10.2% of the top missions (Lumina).
“Consumers will continue to shop more locally, turning to convenience and independent stores more often as they look to save on fuel, manage budgets and spend more evenings at home,” adds Collins. “With one in five baskets in C&I including a CSN product (Lumina) and the Bagged Snacks segment growing ahead of Total Grocery at +16.4% vs +7.2% (Kantar), retailers can rely on the category to drive sales.
KP Snacks is helping retailers to bag their share of CSN growth with the newly developed ‘25 to Thrive’ ranging advice. Providing a core recommendation of SKUs to stock from multiple suppliers, the impartial category wide advice was developed to provide relevant and effective retailer support in response to the unprecedented challenges of recent years. The 25 recommended core CSNP products cater to priority trends of value reassurance, the role of well- loved brands, Big Night In occasions and on-the-go snacking with a range of formats running across the entire value spectrum.
Now more than ever, consumers are looking for products which are considered to offer good value for money, with retailers reporting that 86% of customers are looking for value and deals (ACS).
“Our KP Snacks range offers the broadest portfolio of tasty snacks across all segments, with something for everyone and all occasions,” says Collins. “From popcorn to nuts to pretzels and, of course, crisps, our range creates value and generates demand by meeting all consumer needs with a wide range of products delivered in all formats (singles, multipacks, sharing) up and down the value spectrum and to suit all pockets.”
Brand remains an important purchase driver when choosing a product, with branded sales in C&I making up 92% of sales (NielsenIQ), and KP Snacks produces iconic brands including Hula Hoops, McCoy’s, KP Nuts and Butterkist, alongside well-loved heritage brands including Skips, Discos, Wheat Crunchies and Space Raiders. Customers gravitate towards well-known and trusted brands and KP Snacks is the number one supplier of nuts and popcorn in the UK.
Earlier this year, KP Snacks launched McCoy’s Epic Eats, a brand new product range with two irresistible products, Nacho Cheese and Spicy Salsa. Available in a 45g Grab Bag format and £1.25 PMP, McCoy’s Epic Eats brings unique and tempting flavours to the category and has been designed to drive brand penetration.
Bringing a kick to the Healthier Snacking segment, KP also recently launched popchips Hot & Spicy. popchips is a beacon brand in Healthier Snacking and the new launch taps into the growing trend of spicy flavours to tempt shoppers and boost sales for retailers.
Andy Brown, Director, Envis Foods, comments: “The beauty of snacking is that there are so many great opportunities for a snack both out of home either as an impulse item or to share with friends and the same applies in home with big night in occasions, for example with WOW Jalapeno to keep the party going longer, so the key thing for wholesalers is to be well stocked with a good range of different bag sizes and flavours at all times and also to focus on special occasions and packs for events like Halloween and Christmas in the Winter months.”
Envis Foods is offering once again Mexican Curlys that add a touch of spice to one of its best-selling lines Curly Classic. They are available in cases of 14 with rsp of £1.25 in line with the ever popular classic.
“We are finding that the four things that are driving growth of existing ranges are: consistently good availability; good every day value through size and price for example Crunchips X-cut 75g or PMP’s like Wanted Tortilla Chips with 125g for £1.25; differentiated lines to add incremental growth such as Pomsticks and Curlys; and hot flavours to capture developing tastes such as WOW Jalapeno and spicy Chipoys ‘rolled tortilla chips that will be backed up by greater on trend on social media presence in the run up to Christmas.”
“Snacking remains a huge part of day-to-day life for Brits,” says Aslı Özen Turhan, Chief Marketing Officer at pladis UK&I.
Demand for savoury snacks in particular shows little sign of slowing, with the category currently worth a huge £1.4bn in sales in convenience stores alone (Nielsen). And, what’s really impressive, is the consistent growth it continues to drive year-on-year (+17.9%, Nielsen) despite a background of rising costs and inflation.
“Consumers are watching their spending more closely, but they’re also placing a higher premium on spending quality time with loved ones – and snacking is at the heart of this. In this evolving landscape, the time-tested bestselling brands play a crucial role. These heritage names have long been trusted by consumers as they offer an unparalleled combination of taste and quality that leads them to be perceived as a worthwhile investment,” adds Turhan.
“For independent retailers, naturally it’s a wise choice to prioritise stocking the top 10 crisps and snacks brands as these are the category’s biggest growth divers. Leading the charge here is our very own Jacob’s Mini Cheddars, which has generated £81.8M (Nielsen) in sales.”
As friends and family look to save money by staying in, they’re increasingly enjoying cosy nights at home, playing games, watching movies, and catching up. And, during these moments, they’re opting for larger snacking formats (up by a significant 15.1%, Nielsen) from well-known brands which are perfect for the evening sharing occasion.
The Jacob’s Mini Cheddars brand is outpacing the overall growth of larger formats (+27.3%, Nielsen) thanks to its range of accessibly priced multipacks and sharing bags, which are a top choice for gatherings. These larger pack formats, constituting almost half of the line-up (45%), perfectly align with the demand for quality and variety.
“Although the trend towards larger pack sizes is gaining traction, in today’s snacking landscape, taste still reigns supreme,” says Turhan. “Shoppers actively seek exciting, new flavours, with Cheddar-based options proving especially popular. Take our Cheddars Red Leicester; almost two thirds of Cheddars shoppers (62%) have only bought this flavour since its launch (Retailer Insight Platform), which suggests that introducing flavour extensions to the portfolio is key to driving incremental sales for the category.”
The Jacob’s Cheddars range has been expanded this year with Jacob’s Cheddars Cheese & Pickle, a classic British flavour combo. Meanwhile, the newly launched Jacob’s Rosemary Mediterranean crackers is one of the fastest-growing flavours in savoury biscuits (Mintel), appealing to a new group of snacking enthusiasts.
In the world of snacking, classic favourites like Jacob’s Mini Cheddars Originals, valued at £14.8M (Nielsen) in convenience, remain irresistible. Yet, in light of growing health-consciousness, there’s a fresh demand for lighter, healthier options that don’t compromise on taste.
To cater to this emerging preference, pladis introduced Jacob’s Mini Cheddars 30% Less Fat, a crunchier version of the beloved snack. The name speaks for itself, and this lower-fat recipe has significantly contributed to the brand’s growth, attracting 48% new customers to Mini Cheddars (Dunhumby). And, on top of this, Jacob’s Crinklys Salt & Vinegar non-HFSS recipe, is now available in a convenience exclusive PMP (£1.25); expanding its appeal and helping independent retailers cater to shoppers seeking lighter options and good value in equal measure.
“It’s important for wholesalers to strike a balance between prioritising the bestselling products (cue our core Jacob’s Mini Cheddars line-up) and allowing sufficient space for exciting new launches,” continues Turhan. “Setting up sections in-depot by shopper mission and clearly signposting the bestsellers – plus NPD – through branded bays and headers can help to make retailers’ shopping experience as seamless as possible, making sure you’re connecting your customers with the products they should be stocking most.”
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