The Children’s Snacking Market: key trends and … › progrefiles › Canadean › CS0614IS -...
Transcript of The Children’s Snacking Market: key trends and … › progrefiles › Canadean › CS0614IS -...
The Children’s Snacking Market: key trends and future developments
shaping the market
Report Code: CS0614IS
Publication Date: June 2015
SAMPLE PAGES
28/07/2015 2 7/28/2015 2 7/28/2015 2 7/28/2015 2
Table of contents
Definitions •Demographic definitions •Methodology •Drivers and inhibitors in Kid’s Snacking •Introduction •Country coverage
Market Context •Historical and projected consumption in the Kid’s Snacking market •Comparison of the Kid’s Snacking market across the globe •Overall Kid’s Snacking occasions by age and gender, including under/over consumption •Share of the Kid’s Snacking market by urban/rural divide and income •Under/Over-consumption levels in the Kid’s Snacking market across the globe •Degree of influence consumer trends have on volume consumption in the Kid’s Snacking market
Demographic cohort consumption and consumer trend analysis •The core factors driving consumption occasions in Kid’s Snacking across the globe
Bakery & Cereals •The core factors driving consumption occasions in Bakery & Cereals Snacking across the globe •Demographic breakdown of Bakery & Cereals Snacking in developed and developing economies
2 3 4 6 7 8
9
10 12 13 15 16 17
18 19
20 21 22
28/07/2015 3 7/28/2015 3 7/28/2015 3 7/28/2015 3
Table of contents
•Degree of influence top three trends have on volume by consumption and how the trend is influencing consumption in the Bakery & Cereals Snacking market
•New product example launches in the global Bakery & Cereals Snacks market
Confectionery •The core factors driving consumption occasions in Confectionery Snacking across the globe •Demographic breakdown of Confectionery Snacking in developed and developing economies •Degree of influence top three trends have on volume by consumption and how the trend is
influencing consumption in the Confectionery Snacking market •New product example launches in the global Bakery & Cereals Snacks market
Dairy and Soy •The core factors driving consumption occasions in Dairy and Soy Snacking across the globe •Demographic breakdown of Dairy and Soy Snacking in developed and developing economies •Degree of influence top three trends have on volume by consumption and how the trend is
influencing consumption in the Dairy and Soy Snacking market •New product example launches in the global Dairy and Soy Snacks market
Ice Cream •The core factors driving consumption occasions in Ice Cream Snacking across the globe •Demographic breakdown of Ice Cream Snacking in developed and developing economies
24 27
29 30 31
33 37
39 40 41
43 46
48 49 50
28/07/2015 4 7/28/2015 4 7/28/2015 4 7/28/2015 4
Table of contents
•Degree of influence top three trends have on volume by consumption and how the trend is influencing consumption in the Ice Cream Snacking market
•New product example launches in the global Ice Cream Snacks market
Savory Snacks •The core factors driving consumption occasions in Savory Snacks Snacking across the globe •Demographic breakdown of Savory Snacks Snacking in developed and developing economies •Degree of influence top three trends have on volume by consumption and how the trend is
influencing consumption in the Savory Snacks Snacking market •New product example launches in the global Savory Snacks market
Case Examples •M&M’s Pretzel launch •Hershey’s Lancaster brand’s dual marketing in the US and China
Main barriers in the global Kid’s Snacking market •Explanation how certain barriers in the Kid’s Snacking marker might affect its growth
Recommended actions •How to successfully target key trends in the global Kid’s Snacking market
Appendix
52 55
57 58 59
61 65
67 68 70
72 73
75 76
81
28/07/2015 5 7/28/2015 5 7/28/2015 5 7/28/2015 5
List of figures
List of figures • Figure 1: Overall Kid’s Snacking market by volume and category volume 2011-2013 • Figure 2: Growth rate of the Kid’s Snacking market by category volume 2011-2013 • Figure 3: Growth rate of the Kid’s Snacking by country 2013 • Figure 4: Global Kid’s Snacking occasions by age and gender 2013 • Figure 5: Over/under consumption by gender 2013 • Figure 6: Global Kid’s Snacking occasions by urban/rural and income demographics 2013 • Figure 7: Over/under consumption by country 2013 • Figure 8: Key motivations influencing the Kid’s Snacking market 2013 • Figure 9: Level of influence of 20 consumer trends on consumption by category volume, 2013 • Figure 10: Share of category consumption by gender, age, urban/rural, and income group in developed economies • Figure 11: Share of category consumption by gender, age, urban/rural, and income group in developing economies • Figure 12: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 13: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 14: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 15: Level of influence of 20 consumer trends on consumption by category volume, 2013 • Figure 16: Share of category consumption by gender, age, urban/rural, and income group in developed economies • Figure 17: Share of category consumption by gender, age, urban/rural, and income group in developing economies
10 11 12 13 14 15 16 17 21
22
23 24 25 26 30
31
32
28/07/2015 6 7/28/2015 6 7/28/2015 6 7/28/2015 6
List of figures
List of figures (cont.) •Figure 18: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 19: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 20: Level of influence of a consumer trend on consumption by category volume, 2013 •Figure 21: Level of influence of 20 consumer trends on consumption by category volume, 2013 • Figure 16: Share of category consumption by gender, age, urban/rural, and income group in developed economies • Figure 22: Share of category consumption by gender, age, urban/rural, and income group in developing economies • Figure 23: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 24: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 25: Level of influence of a consumer trend on consumption by category volume, 2013 •Figure 26: Level of influence of 20 consumer trends on consumption by category volume, 2013 • Figure 27: Share of category consumption by gender, age, urban/rural, and income group in developed economies • Figure 28: Share of category consumption by gender, age, urban/rural, and income group in developing economies •Figure 29: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 30: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 31: Level of influence of a consumer trend on consumption by category volume, 2013
33 34 35 40
41
42 43 44 45 49
50
51 52 53 54
28/07/2015 7 7/28/2015 7 7/28/2015 7 7/28/2015 7
List of figures
List of figures (cont.) •Figure 32: Level of influence of 20 consumer trends on consumption by category volume, 2013 • Figure 33: Share of category consumption by gender, age, urban/rural, and income group in developed economies • Figure 34: Share of category consumption by gender, age, urban/rural, and income group in developing economies •Figure 35: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 36: Level of influence of a consumer trend on consumption by category volume, 2013 • Figure 37: Level of influence of a consumer trend on consumption by category volume, 2013
58
59
60 61 62 63
28/07/2015 8 7/28/2015 8 7/28/2015 8 7/28/2015 8
Reasons to buy this report
The Children’s Snacking Market: key trends and future developments shaping the market is a detailed consumer insight report, exploring the future of the Kid’s Snacking market in both developed and developing economies. The report breaks down the snacking market by category and when targeted effectively, can further expand the market, globally.
Future outlook The report provides insight to highlight the "so what?" implications behind the data, and analysis of how the need states of consumers within the Kid’s Snacking market will evolve in the short-to-medium term future. The recommended actions and analysis throughout the report will allow manufacturers to align their research and development and marketing strategy with the stand out trends influencing consumer behavior.
Sized market opportunities Canadean’s market data and country/category comparisons allow for markets and opportunities to be sized as a measure of potential profitability. Detailed figures also allow for market penetration to be quantified, revealing targeting opportunities for Kid’s Snacking manufactures and key areas for defense strategies .
Understand the key trends shaping consumer behavior Canadean’s unique consumer data, developed from extensive consumption surveys and consumer group tracking, quantifies the influence of 20 consumption motivations across the market. This grants a confident and thorough understanding of consumer behavior.
Find out who uses what, and why This report identifies the key consumer demographic groups driving the consumption in the Kid’s Snacking market, based on demographic profiles in developed and developing economies. Consumer analysis and case studies provide insight into the Kid’s Snacking market and clear opportunities for new product developments are explored.
28/07/2015 9 7/28/2015 9 7/28/2015 9 7/28/2015 9
Asia-Pacific, especially India and China, is
an important market for snack
manufacturers due to the large demographic
size and rising disposable income, which
leads to increasing per capita consumption
Russia remains one of the
fastest-growing snacking
markets, globally
Rapidly increasing per capita consumption is creating new opportunities in emerging markets
US manufacturers are
focusing on product
innovation across
categories in the kids
snacks market
Consumers’ search for better value for
money products will drive the growth of
private label products
Country Coverage Brazil, China, France, Germany, India, Italy, Russian, Spain, UK, and US
New tastes and flavors
remain a priority for Latin
American snack
companies
Obesity concerns will
influence
consumption patterns
in the EU region
28/07/2015 10 7/28/2015 10 7/28/2015 10 7/28/2015 10
Volu
me in k
g m
illio
n,
2013
Growth rate 2011–2013
Volume growth by category Yoghurt
Cakes, Pastries & Sweet Pies
Cookies (sweet Biscuits)
Impulse Ice Cream
Chocolate
Morning Goods
Sugar Confectionery
Dairy-based and Soy Desserts
Take-home Ice Cream
Processed Snacks
Savory Biscuits
Potato Chips
Ethnic/traditional Snacks
Artisanal Ice Cream
Nuts & Seeds
Gum
Popcorn
Cereal Bars
Pretzels
Energy Bars
Meat Snacks
The Kids Snacking market has grown at a rate of X.X% in volume terms during 2011–2013, mainly driven by factors such as Indulgence and the need for Personal Space & Time. Yogurt is the largest category in the market, accounting for XX.X% volume share in 2013, followed by Cakes, Pastries & Sweet Pies, and Cookies (Sweet Biscuits) with XX.X% and XX.X% share respectively. Consumption of Ethnic/Traditional Snacks grew at a rate of XX.X% during 2011–2013, which is comparatively higher than other categories. This is due to its low base and increasing popularity among consumers. Similarly, the Energy Bar category is also witnessing significant growth, which can be linked to younger consumers seeking products that help give them an energy boost to facilitate their busy life.
Cakes, Pastries & Sweet Pies, and Yogurt drive one-third of the Kids Snacking market by volume
Bubble Size = Share of Kids Snacks Volume 2013
28/07/2015 11 7/28/2015 11 7/28/2015 11 7/28/2015 11
Indulgence
Personal Space & Time
Changing Age Structures
Better Value for Money
Fun & Enjoyment
Busy Lives
Changing Lifestages
Quality Seeking
Experience Seeking
Individualism
Trust
Urbanization & Migration
Health
Media
Connection
New Gender Behaviors
Beauty
Ethics, Responsibility & Spirituality
Aspirations
Technology Uptake
Value Influenced by Trend (Kg Million)
Key Motivations Influencing the Consumption of Bakery & Cereals Snacks, 2013
Changing Age Structures, Fun & Enjoyment, and Indulgence are among the primary factors driving Bakery & Cereals snacking across the globe
This chart shows the degree of influence that
each trend has on Bakery & Cereals snacking
occasions among consumers aged 0-15 in
Canadean’s 10 core countries. Changing Age
Structures is the most influential trend for
consumption, highlighting how kids want treats
they perceive to be sophisticated and upscale.
Fun & Enjoyment and Indulgence continue to
have a strong influence on consumption choice
among kids. This highlights how, despite the
importance of products being seen as upscale,
good taste and fun and novelty are still critical to
product positioning.
Better Value for Money is also a key
consideration, which will be critical due to the
limited levels of disposable income among kids
and cost conscious parents. If consumers are to
trade-up it needs to be seen as a genuine treat
Personal Space & Time is the third most
influential trend influencing Kids Snacking
habits, with it being particularly influential in the
cookies category. This highlights the importance
of kids needing moments of escapism with
traditional favorites.
28/07/2015 12 7/28/2015 12 7/28/2015 12 7/28/2015 12
Kids Snacking influences 1.5 kg billion of Dairy Food consumption in developed economies per annum
Urban/Rural Income
Gender Age group
The diagrams below illustrate the share of Kids Dairy Food consumption influenced in 2013, segregated based on Gender,
Age group, Income group and Urban/Rural divide in developed economies (the UK, the US, France, Germany, Italy, and
Spain).
Percentage of consumption within each sub-category:
% of consumption influenced among each age group % of consumption influenced among each gender
% of consumption influenced among each income group % of consumption influenced among Urban/Rural group
Dairy-based and Soy Desserts: XX.X% Yoghurt : XX.X%
Puddings/desserts Yoghurt
Kids & Babies Tweens & Early Teens
Urban
Rural
Affluent
Better Off
Moderate Income
Hard Pressed
Rather Not Say
28/07/2015 13 7/28/2015 13 7/28/2015 13 7/28/2015 13
Chocolate Gum Sugar Confectionery
Indulgence continues to be the leading motivator influencing Confectionery consumption among kids
Indulgence is, unsurprisingly, playing a pivotal role in
consumers’ product choices; Canadean’s Consumer
Data shows it was the key motivator with 38.8% of
the Confectionery market by volume when it comes
to Kids Snacking. Confectionery continues to be an
affordable luxury even though disposable incomes
are tight. Chocolatiers are experimenting with a
broad range of new indulgent ingredients, hybrid
varieties, and Sugar Confectionery innovation.
Launch of hybrid varieties
Manufacturers are increasingly launching hybrid chocolates, particularly in developed
markets, to attract children with fresh, novel flavors such as those with a combination
of sweet and savory (crackers and chocolate), or double flavors of milk and cocoa.
New textures are also being innovated, with chocolate bars filled with jellies, popping
candy, and fruits and nuts becoming increasingly popular. For instance, Mondelez has
introduced new chocolate bars combining Cadburys Dairy Milk with Ritz crackers and
the French sweet biscuit brand Lu. It includes pieces of Dairy Milk sandwiched
between rectangular biscuits.
Soft chewy candies launched in multiple flavors
The bulk of Sugar Confectionery consumers are kids seeking out everyday treats.
While hard boiled, sweet candy is the largest segment, the emergence of soft-style
eating candies appears to derive strong interest among kids. Brands such as
Starburst, Airheads Bites, and Sour Patch Kids are soft chewy candies available in a
variety of flavors, including watermelon, orange, and raspberry. The launch of varied
flavors also provides more choice to the consumer. For example, Maynards’ new
limited edition Sour Patch sweets, containing orange and blackcurrant flavored gum,
which are intensely sour but become gradually sweeter.
Share of Volume Consumption Influenced by Indulgence trend in
each category, 2013
28/07/2015 14 7/28/2015 14 7/28/2015 14 7/28/2015 14
Innovative new product launches in the global Savory Snacks, Kids Snacking market
Brand: Blédiscuit Croissance au
Chocolat
Manufacturer: Beldina
Launched: France
Trend: Changing Lifestages
Blédiscuit Croissance au Chocolat from
Beldina, France is a chocolate flavored
biscuit specially designed to suit the
requirements of kids of different ages. Its
texture and composition is specifically
designed for babies who are 12 months
and older that already have some teeth.
Brand: Pirates Booty Aged White
Cheddar
Manufacturer: B & G Foods
Launched: US
Trend: Busy Lives, Changing Age
Structures
Pirates Booty’s rice and corn puffs in
Aged White Cheddar flavor are available
in small packs of 0.5 Oz each. Due to its
ingredients, it serves as an ideal school
lunch snack for kids looking for
something more sophisticated.
Brand: Smith’s Kids Potato Chips
Manufacturer: The Smith's Snackfood
Company
Launched: Australia
Trend: Better Value for Money
An assortment of 20 different Smith’s
snacks is available as a Kidz Pick pack in
Australia. The pack costs 50% less than
single packs and serves as an ideal
option for parents who prefer to shop in
bulk to save money whilst offering their
child variety in their snacking.
Brand: eat your vegetables
Manufacturer: Snikiddy
Launched: US, 2013
Trend: Experience Seeking
Snikiddy’s offers a wide range of
products that are ideal for kids snacking.
This new soy and ginger variety of
vegetable snack is an Asian-inspired
flavor aimed to tap into the popularity of
umami flavors, which is very rare in the
snacks aisle and provides a new taste
experience to kids.
28/07/2015 15 7/28/2015 15 7/28/2015 15 7/28/2015 15
Some product examples from the KFC’s range in India
Fresh and value offerings will prove a growing threat to Kids Snacking manufacturers as QSR’s expand their menus
Traditionally, snacks are planned purchases from the supermarket or impulse purchases from convenience stores. However, Quick Service Restaurants and Coffee Shops are beginning to take a significant share of the Snacking market away from traditional Snacking brands, following the introduction of attractive kid’s menus. QSR’s are expanding their offering to give kids a variety of snacking products such as Ice Cream, Cakes, pastries, cookies, sandwiches, burgers, French fries, and salads. These value menus are offering consumers another option whereby they can have a warm, indulgent, filling Snack for a small price difference. The introduction of these Snacking menus also fits with the trend influenced by the changing lifestyle of kids, where they manage school, tuition, extra classes, and pursuing their hobbies all in a limited time, leading to fragmented meal times and driving growth of QSR’s Wider choices from QSR’s is becoming serious direct competition for supermarkets and convenience stores. McDonald’s and KFC are among the leading QSRs, which are increasingly attracting kids by offering value meals. Similarly, there are many more emerging local and international players who are re-aligning their menu to target Kids Snacking occasions with fresh offerings.
Hot Wings™ 5 pc Popcorn Chicken™
Burgers Strips
Fries Corn Cupz
Desserts
Krushers – Smoothies etc
Toasted Wraps
28/07/2015 16 7/28/2015 16 7/28/2015 16 7/28/2015 16
Recommended Actions
Targeting the niche segment of Organic and Natural snacking
products
The demand for no artificial colors, additives, and preservatives is set to rise, as consumers’ dietary preferences develop to include more natural products in their kid’s diets. Customers associate organic and natural ingredients with higher quality and more artisanal production methods, and they are willing to pay a premium for products of this nature. Marketers can target health conscious and quality-seeking parents by positioning organic products as higher quality, highlighting the superior attributes they offer compared to generic products.
Targeting Sports Events
Most kids will follow one or more sport, depending on their personal choices. National and International sporting events create opportunities to increase sales by adopting focused marketing campaigns. Manufacturers can maximize their sales inline with sports events, such as the FIFA World Cup, Olympics, Super Bowl, European Football Championship, Major League Baseball World Series, and ICC Cricket World Cup. Depending on the popularity of a particular sporting event in the country, marketers can adopt specific marketing strategies including sponsorships, partnerships with teams, and extended advertising during the telecast to achieve wider viewership. These strategic initiatives will encourage impulse purchasing, building on the excitement surrounding such events, as well as increased media coverage.
Popsicles in the shape of a football, availing the arrival of World Cup FIFA Brazil 2014
Fox’s Biscuits launched a Party Footballs variety of their Party Rings. They combined new blue and green colors, with one of five different soccer designs engraved on the back of each biscuit to capitalize on the popularity of World Cup Football 2014 in Brazil.
28/07/2015 17 7/28/2015 17 7/28/2015 17 7/28/2015 17
Related Reports
Successful New Product Development Strategies in the Food, Drinks and Personal Care Market Canadean has studied the best new product development, cross-category innovation, and marketing campaigns in both developing and developed countries to find common themes and best practice. The evolution of consumption habits across the world means both retailers and manufacturers need a renewed understanding of consumers’ changing lifestyles, and how this will affect their product choices. To do this, the report highlights innovative new product development for effectively targeting consumers’ most important needs, and offers strategic recommendations to capitalize on the evolving motivations driving consumption.
Global and Regional Mega-Trends: Understanding Consumer Attitudes and Behaviors in Value Consumers across the world continue to seek the best value for money, especially in staple categories. Economic and financial uncertainty as well as other critical factors mean that products that are positioned around providing better value for money are popular with consumers. People are becoming more price conscious, trading-up less and becoming savvier when shopping. The rise in discounters providing cheaper alternatives, without compromising on quality has helped consumers in their search for value.
Consumer Insights: Savory Snacks Market in the US US consumers associate Savory Snacks with good times and select them as an accompaniment during quality time spent with friends or family, or short relaxation breaks during busy days.