Press Release Summary = 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.
Press Release Body = Snack Foods - Market Report
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.
2012
