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Sector Trend Analysis – Savoury snacks in the United States

October 2018

Executive summary

In 2017, the snack sector continued to prioritize the healthiness, portability, convenience and indulgence offered by savoury snacks. It experienced growth both in retail value and in retail volume sales, with compound annual growth rates (CAGRs) of 3.2% and 1.5%, respectively, from 2013 to 2017.

The strongest-growing savoury snack category is vegetable, pulse and bread chips with a compound annual growth rate (CAGR) of 9.1%, followed by other savoury snacks (CAGR: 5.4%) and popcorn (CAGR: 5.1%) from 2013 to 2017.

Snack products made with innovative base ingredients (for example, vegetables and grains) are likely to meet the demand of consumers who are looking for healthier products with transparent ingredients.

PepsiCo Inc. leads the savoury snacks sector with 39.1% market share in 2017 and a steady compound annual growth rate of 0.3% from 2013 to 2017. Snyder's-Lance Inc is the fastest-growing company in the sector with the highest compound annual growth rate from 2013 to 2017 (9.7%), increasing its market share from 3.3% in 2013 to 5.5% in 2017.

According to Mintel, 366 savoury snack products were launched in the United States (U.S.) from 2013 to 2017. Of these, 39.6% were new varieties/range extensions, 34.4% were new packaging, and 18.9% were new products.

Within the last five years of new snack product launches in the U.S., 34.4% of those new products were manufactured in the U.S. and 5.7% in Canada. From 2013 to 2017, the top countries from which the U.S. imported new snack products were Canada (21 products), South Korea (6), Thailand (6) and China (3).

Note: Other savoury snacks include meat snacks, seaweed, fish snacks, pork scratchings, non-dairy-based cup jellies, snack noodles, and ready-to-eat dried noodles.

Market trends

In 2017, savoury snacks in the United States (U.S.) continued to see growth in both retail value and retail volume sales, with compound annual growth rates (CAGRs) of 3.2% and 1.5%, respectively, from 2013 to 2017. This growth is largely due to changing household sizes and growing preference for convenience and bold new flavours.

According to Euromonitor, there is an increase in consumer preference for snack foods over traditional sit-down meals. This change is now boosting demand for single-portion, portable, and healthier snack products. Convenience continues to be a key factor in consumer preference for certain snacks over others. For example, consumers are shifting away from microwave popcorn brands to less fresh, pre-popped brands. Following this trend, average unit price in savoury snacks grew by 1% in current terms in 2017 (Euromonitor International, 2018).

Younger consumers are having a notable impact on snack innovation as manufacturers are continually revolutionizing snack products with bold, spicy flavours that appeal to them. Health concerns also impact snack innovation. Future category growth is expected to be driven by consumer interest in healthy and indulgent snacking.

Snacking has become an accepted way of eating for most consumers, despite being blamed for rising obesity rates. In the U.S., two-thirds of Americans snack between meals. Manufacturers are developing baked, popped, wholegrain and seeded salty snacks as rising obesity rates encourage consumers to choose healthier options for snacking occasions (Category Insight: Salty Snacks, Meat Snacks and Popcorn, 2014).

For snack manufacturers to bring successful products to market, they must provide "something new", be it a flavour or a texture. A growing number of consumers have a liking for flavours that are increasingly sweet, strong/bold and sour/tangy, which signals an opportunity for snack brands to innovate beyond salty/savoury varieties. In the U.S., 35% of chip eaters say that a new flavour would increase their chip purchases; a further 37% prefer innovative flavours (for example, sriracha, truffle) over traditional (for example, onion, vegetable) (Category Insight: Salty Snacks & Fruit Snack Mixes, 2017).

According to Mintel, in the U.S., 94% of consumers snack at least once a day, while more than 50% are likely to snack two to three times a day. As snacking is replacing traditional meals, 33% of consumers are snacking on healthier foods more than ever before. In Mintel research, younger consumers are more likely to snack than older consumers and are also more likely to be emotional snackers than functional snackers.

Flavour continues to be a major focus of salty snack innovation, but brands have also been exploring the "platform" of the snack - the base on which flavours are built. Recent new product launches show how the building blocks of the salty snack category have moved beyond the traditional potato, rice and corn to grains and vegetables, and even to organic (Category Insight: Salty Snacks & Fruit Snack Mixes, 2017).

Sector analysis – retail environment

In 2017, savoury snack products saw a 3.2% increase in retail sales with a closing total of US$46.6 billion in the U.S. Savoury snack products are also expected to increase at a CAGR of 3.5% from 2018 to 2022. The strongest-growing category is vegetable, pulse and bread chips, with a CAGR of 9.1% from 2013 to 2017. It is expected to maintain the second-strongest growth in the next forecasted period, with a projected CAGR of 4.8% and value sales of US$1.2 billion by 2022. This growth will stem from a continued shift towards ready-to-eat brands with health-focused positioning.

The second-fastest growing snack category is "other savoury snacks" (largely dominated by high-protein meat snacks and trail mixes), with a sales value of US$5.7 billion in 2017 and a CAGR of 5.4% from 2013 to 2017.

Popcorn was the third-fastest growing category, with a 5.1% increase in value sales of US$3.0 billion in 2017. This category is expected to reach US$3.9 billion by 2022, with a CAGR of 6.0% from 2018 to 2022. Growth will largely stem from health-positioned products and innovation with stronger flavours that consumers enjoy.

According to Euromonitor International, savoury snacks are facing increasing competition from foods which are both healthy and convenient. High levels of innovation in other snack food categories are posing a threat to savoury snacks. At the same time, there has been dramatic growth in meal kits like Blue Apron and HelloFresh, which deliver pre-portioned ingredients and easy-to-prepare recipes directly to consumers, making it easier than ever to cook a healthy meal at home. In addition, supermarkets and convenience stores continue to innovate with freshly prepared foods and foodservice offerings, providing instant meal solutions which are healthy and perfect for grab-and-go occasions.

Historic retail sales of savoury snacks, in US$ millions, 2013-2017
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
Savoury snacks 41,189.0 42,952.1 44,387.7 45,661.1 46,639.3 3.2
Nuts, seeds and trail mixes 6,004.7 6,283.2 6,538.5 6,567.5 6,622.0 2.5
Salty snacks 19,787.1 20,774.8 21,422.7 22,169.1 22,768.8 3.6
Potato chips 8,495.0 8,915.5 9,013.6 9,175.8 9,298.6 2.3
Tortilla chips 6,818.9 7,187.5 7,438.8 7,751.8 8,057.6 4.3
Puffed snacks 3,591.7 3,693.6 3,905.5 4,091.4 4,221.1 4.1
Rice snacks 207.9 206.3 213.7 230.3 238.2 3.5
Vegetable, pulse and bread chips 673.7 771.9 851.1 919.8 953.4 9.1
Savoury biscuits 6,458.7 6,456.7 6,484.0 6,597.2 6,588.2 0.5
Popcorn 2,497.0 2,697.5 2,845.1 3,019.5 3,041.1 5.1
Pretzels 1,797.3 1,820.2 1,818.7 1,822.9 1,882.8 1.2
Other savoury snacks[1] 4,644.1 4,919.7 5,278.7 5,484.9 5,736.4 5.4

Source: Euromonitor International, 2018.

*CAGR: compound annual growth rate.

1: Other savoury snacks include meat snacks, seaweed, fish snacks, pork scratchings, non-dairy-based cup jellies, snack noodles, and ready-to-eat dried noodles.

The strongest-growing savoury snack category is vegetable, pulse and bread chips, with a compound annual growth rate (CAGR) of 9.1%, followed by other savoury snacks (CAGR: 5.4%) and popcorn (CAGR: 5.1%) from 2013 to 2017. Vegetable, pulse and bread chips reached US$953.3 million retail sales in 2017, representing 2.0% of total savoury snack sales (US$46.6 billion) in 2017.

Snack products made with innovative base ingredients (for example, vegetables and grains) are likely to meet the demand of consumers who look for healthier products with transparent ingredients. The North American market in particular has seen a number of interesting launches in 2016 such as broccoli-/Brussels sprout-/spinach-based snacks. Seaweed snacks, such as seaweed thins or crisps, are likely to appeal to the 77% of U.S. snack consumers who prefer ready-to-eat snacks over those that must be heated or prepared (Category Insight: Salty Snacks & Fruit Snack Mixes, 2017).

Meat snacks were also critical to growth in "other savoury snacks" as consumers continued to gravitate towards meat snacks as high-protein, minimally processed offerings which are highly portable.

Historic retail volume sales of savoury snacks,  in '000 tonnes, 2013-2017
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
Savoury snacks 4,054.5 4,161.4 4,189.4 4,261.9 4,302.6 1.5
Nuts, seeds and trail mixes 516.2 521.8 518.4 518.9 526.9 0.5
Salty snacks 1,852.7 1,942.2 1,964.6 2,012.0 2,037.0 2.4
Potato chips 732.6 769.7 762.1 771.2 772.3 1.3
Tortilla chips 740.6 789.5 807.6 834.3 854.4 3.6
Puffed snacks 317.0 314.3 321.7 327.2 328.3 0.9
Rice snacks 13.2 13.1 13.2 13.8 14.5 2.4
Vegetable, pulse and bread chips 49.3 55.7 59.9 65.5 67.6 8.2
Savoury biscuits 774.3 767.3 760.6 771.1 767.7 −0.2
Popcorn 350.0 364.9 377.5 376.9 365.3 1.1
Pretzels 302.5 303.9 305.5 308.3 318.6 1.3
Other savoury snacks 258.7 261.3 262.9 274.8 287.1 2.6

Source: Euromonitor International, 2018.

*CAGR: compound annual growth rate.

Likewise, in retail volume sales, vegetable, pulse and bread chips had the highest compound annual growth rate at 8.2% from 2013 to 2017, reaching 67.6 thousand tonnes in 2017 (1.6% of the total 4.3 million tonnes in savoury snack volume sales). For the same period, tortilla chips had a compound annual growth rate of 3.6%, while for savoury snacks the CAGR was 1.5%.

Forecast retail sales of savoury snacks, in US$ millions, 2018-2022
Category 2018 2019 2020 2021 2022 CAGR* % 2018-22
Savoury snacks 48,261.0 50,014.9 51,771.3 53,480.1 55,288.5 3.5
Nuts, seeds and trail mixes 6,924.2 7,233.4 7,554.1 7,872.3 8,211.9 4.4
Salty snacks 23,563.2 24,411.4 25,234.6 26,030.0 26,860.3 3.3
Potato chips 9,508.6 9,775.7 10,036.8 10,302.8 10,595.2 2.7
Tortilla chips 8,399.1 8,729.8 9,048.6 9,343.3 9,635.6 3.5
Puffed snacks 4,402.0 4,590.5 4,773.6 4,950.5 5,136.9 3.9
Rice snacks 250.7 261.5 270.6 278.2 284.6 3.2
Vegetable, pulse and bread chips 1,002.7 1,053.9 1,105.0 1,155.2 1,208.0 4.8
Savoury biscuits 6,684.6 6,815.2 6,956.2 7,093.6 7,244.2 2.0
Popcorn 3,139.2 3,287.3 3,476.6 3,699.7 3,965.1 6.0
Pretzels 1,942.5 1,988.2 2,021.4 2,045.1 2,065.6 1.5
Other savoury snacks[1] 6,007.2 6,279.4 6,528.4 6,739.4 6,941.3 3.7

Source: Euromonitor International, 2018.

*CAGR: compound annual growth rate.

1: Other snacks include jerky, snack mixes/combo packs, trail mixes, seeds, pita chips, and pork scratchings.

Popcorn is forecasted to have the highest compound annual growth rate in the snack category at 6.0% from 2018 to 2022, reaching US$3.9 billion in 2022, representing 7.2% of total savoury snack sales (US$55.3 billion) in 2022. Vegetable, pulse and bread chips are expected to have a compound annual growth rate of 4.8% from 2018 to 2022. The compound annual growth rate of savoury snacks is forecasted to increase to 3.5% over the same period, a higher rate than its CAGR of 3.2% from 2013 to 2017.

Forecast retail volume sales of savoury snacks, in '000 tonnes, 2018-2022
Category 2018 2019 2020 2021 2022 CAGR* % 2018-22
Savoury snacks 4,357.0 4,411.5 4,465.6 4,520.4 4,578.6 1.2
Nuts, seeds and trail mixes 534.8 543.5 552.1 560.6 569.6 1.6
Salty snacks 2,075.1 2,112.9 2,149.5 2,185.5 2,221.7 1.7
Potato chips 776.1 781.8 788.7 796.6 805.6 0.9
Tortilla chips 881.3 906.6 930.1 952.2 973.7 2.5
Puffed snacks 333.4 338.1 342.3 346.4 350.3 1.2
Rice snacks 15.0 15.3 15.6 15.7 15.9 1.5
Vegetable, pulse and bread chips 69.4 71.2 72.9 74.5 76.2 2.4
Savoury biscuits 768.8 769.3 770.8 773.2 776.5 0.2
Popcorn 360.0 359.8 363.4 369.8 379.1 1.3
Pretzels 324.9 328.5 330.2 330.8 330.9 0.5
Other savoury snacks 293.4 297.4 299.6 300.5 300.8 0.6

Source: Euromonitor International, 2018.

*CAGR: compound annual growth rate.

It is expected that in volume sales, tortilla chips will have a 2.5% compound annual growth rate from 2018 to 2022, reaching 973.7 thousand tonnes in 2017. Vegetable, pulse and bread chips are projected to have a 2018-2022 compound annual growth rate of 2.4%.

Competitive landscape

PepsiCo Inc. led the snack sector with a 39.1% market share in 2017 and a steady compound annual growth rate of 0.3% from 2013 to 2017.  However, Snyder's-Lance Inc. is the fastest-growing company in the sector, with the highest CAGR from 2013 to 2017 (9.7%), and increased its market share from 3.3% in 2013 to 5.5% in 2017.

With its Keebler Foods subsidiary, Kellogg ranked second in savoury snacks  with a share of 6.4% in 2017. This share is primarily due to its two powerhouse brands, Pringles and Cheez-It, which held a combined value share of 4.6% in savoury snacks in 2017. According to Euromonitor International, in February 2017, Kellogg announced that it abandoned the direct-store-delivery (DSD) method of distribution for its snacks and would instead sell through retailer warehouses. The change effectively surrenders control of distribution for Kellogg's snack brands (as DSD provides direct support and service within the store), leaving it up to the retailer. DSD is more costly, however, and this move will help improve Kellogg's margins by an estimated 15 points.

Snyder's-Lance ranked third in savoury snacks with a value share of 5.5% in 2017. Its first ever multi-brand snack pack was launched in May 2017 with a clear better-for-you positioning.

Mondelez International ranked fourth in savoury snacks with a value share of 4.9% in 2017. The company competes exclusively in savoury biscuits. While Mondelez's share in savoury biscuits remained flat over the past five years, its share in savoury snacks as a whole fell as savoury biscuits lagged behind general growth in savoury snacks (company shares CAGR of −2.4%, retail sales CAGR of 0.5%, from 2013 to 2017).

Company shares

Top ten company shares of savoury snacks: % retail value 2013-2017
Company 2013 2014 2015 2016 2017 CAGR* % 2013-17
PepsiCo Inc 38.6 38.4 38.4 38.7 39.1 0.3
Kellogg Co 7.0 6.9 6.7 6.7 6.4 −2.2
Snyder's-Lance Inc 3.8 3.8 3.8 5.4 5.5 9.7
Mondelez International Inc 5.4 5.1 5.1 5.0 4.9 −2.4
Link Snacks Inc 3.2 3.6 3.6 3.3 3.3 0.8
Kraft Heinz Co 3.5 3.4 3.1 N/C
ConAgra Brands Inc 2.9 2.9 N/C
Campbell Soup Co 2.1 2.0 2.0 2.0 2.1 0.0
Utz Quality Foods Inc 1.4 1.4 1.4 1.7 1.7 5.0
The Wonderful Co LLC 1.4 1.4 1.4 N/C

Source: Euromonitor International, 2018.

*CAGR: compound annual growth rate.

N/C: not calculable.

Among the top ten companies, Snyder's-Lance Inc had the highest compound annual growth rate of 9.7% from 2013 to 2017, followed by Utz Quality Foods Inc with a compound annual growth rate of 5.0% over the past five years.

Company shares of savoury snacks: retail value, in US$ millions 2013-2017
Company 2013 2014 2015 2016 2017 CAGR* % 2013-17
PepsiCo Inc 15,916.3 16,489.3 17,032.4 17,672.0 18,230.2 3.5
Kellogg Co 2,880.8 2,976.1 2,982.5 3,053.4 3,000.4 1.0
Snyder's-Lance Inc 1,580.1 1,639.3 1,681.6 2,451.4 2,558.6 12.8
Mondelez International Inc 2,227.1 2,197.9 2,249.7 2,273.7 2,268.8 0.5
Link Snacks Inc 1,334.5 1,530.6 1,584.6 1,495.2 1,552.8 3.9
Kraft Heinz Co 1,569.4 1,530.0 1,465.9 N/C
ConAgra Brands Inc 1,344.4 1,362.0 N/C
Campbell Soup Co 853.4 851.5 877.7 932.3 977.9 3.5
Utz Quality Foods Inc 579.0 607.5 626.8 783.9 786.5 8.0
The Wonderful Co LLC 617.1 626.2 637.9 N/C

Source: Euromonitor International, 2018.

*CAGR: compound annual growth rate.

N/C: not calculable.

The top company, PepsiCo, recorded US$18.2 billion in retail sales in 2017, with a 3.5% compound annual growth rate from 2013 to 2017. Among the top ten companies, Snyder's-Lance Inc had the highest compound annual growth rate of 12.8% over the past five years followed by Utz Quality Foods Inc (CAGR: 8.0%).

Brand shares

Among the top ten brand shares of savoury snacks, PepsiCo Inc dominated with six brands, including the top three (Lay's, Doritos and Cheetos) and three others (Tostitos, Ruffles and Fritos), totalling 32.2% value share in 2017.

Top ten brand shares of savoury snacks: % retail value, 2013-2017
Brand Company 2013 2014 2015 2016 2017 CAGR* % 2013-17
Lay's PepsiCo Inc 13.5 13.3 13.1 12.9 12.9 −1.1
Doritos PepsiCo Inc 6.2 6.4 6.5 6.5 6.6 1.6
Cheetos PepsiCo Inc 3.7 3.8 3.9 4.1 4.3 3.8
Jack Link's Link Snacks Inc 3.2 3.6 3.6 3.3 3.3 0.8
Planters Kraft Heinz Co 3.4 3.2 3.0 N/C
Tostitos PepsiCo Inc 3.3 3.1 3.1 3.0 3.0 −2.4
Ruffles PepsiCo Inc 2.6 2.7 2.7 2.8 2.9 2.8
Fritos PepsiCo Inc 2.4 2.4 2.5 2.5 2.5 1.0
Cheez-It Kellogg Co 2.3 2.3 2.3 2.4 2.3 0.0
Pringles Kellogg Co 2.4 2.5 2.5 2.5 2.3 −1.1

Source: Euromonitor International, 2018.

*CAGR: compound annual growth rate.

N/C: not calculable.

Top ten brand shares of savoury snacks: retail value, in US$ millions, 2013-2017
Brand Company 2013 2014 2015 2016 2017 CAGR* % 2013-17
Lay's PepsiCo Inc 5,576.5 5,712.8 5,797.9 5,887.0 6,012.6 1.9
Doritos PepsiCo Inc 2,573.0 2,759.3 2,865.5 2,988.9 3,093.7 4.7
Cheetos PepsiCo Inc 1,539.1 1,641.9 1,751.8 1,885.8 2,014.8 7.0
Jack Link's Link Snacks Inc 1,334.5 1,530.6 1,584.6 1,495.2 1,552.8 3.9
Planters Kraft Heinz Co 1,498.6 1,460.0 1,394.1 N/C
Tostitos PepsiCo Inc 1,358.3 1,337.2 1,360.3 1,377.5 1,385.4 0.5
Ruffles PepsiCo Inc 1,086.1 1,151.3 1,193.9 1,276.3 1,368.2 5.9
Fritos PepsiCo Inc 995.2 1,046.2 1,098.0 1,143.1 1,181.4 4.4
Cheez-It Kellogg Co 931.6 970.0 1,010.8 1,075.5 1,084.6 3.9
Pringles Kellogg Co 1,004.1 1,066.7 1,094.0 1,125.5 1,083.0 1.9

Source: Euromonitor International, 2018.

*CAGR: compound annual growth rate.

N/C: not calculable.

In retail sales, among the top ten brand shares of savoury snacks, Lay's recorded the biggest retail sales: US$6 billion in 2017 with a compound annual growth rate of 1.9% from 2013 to 2017. Cheetos had the highest compound annual growth rate of 7.0% from 2013 to 2017, reaching US$2 billion in 2017.

Product launch analysis

This section combines all savoury snack products based on new product launches from January 2013 to December 2017.

Launch type of savoury snacks, 2013-2017
Launch type 2013 2014 2015 2016 2017 2013-2017 % of total 2013-2017
New variety/range extension 42 34 26 23 20 145 39.6
New packaging 12 21 27 32 34 126 34.4
New product 5 15 15 20 14 69 18.9
Relaunch 0 9 5 6 6 26 7.1
Total 59 79 73 81 74 366 100.0
Source: Mintel, 2018.

According to Mintel, 366 savoury snack products were launched in the U.S. from 2013 to 2017. Of these, 39.6% were new varieties/range extensions, 34.4% were new packaging, and 18.9% were new products.

Manufacturer type of savoury snacks, 2013-2017
Type 2013 2014 2015 2016 2017 2013-2017 % of total 2013-2017
Branded 49 58 47 62 43 259 70.8
Private label 10 21 26 19 31 107 29.2
Total 59 79 73 81 74 366 100.0
Source: Mintel, 2018.

In addition, 259 (70.8%) of the total launched savoury snacks were branded, while 107 (29.2%) were private-label products.

Top ten claims of the savoury snack products, 2013-2017
Claim 2013 2014 2015 2016 2017 2013-2017
Low/no/reduced allergen 22 31 37 42 31 163
Gluten free 22 31 35 37 31 156
Kosher 11 26 30 34 31 132
GMO* free 9 29 27 17 20 102
No additives/preservatives 12 21 22 17 26 98
Social media 10 21 20 20 15 86
All natural product 18 30 9 14 9 80
Low/No/reduced transfat 12 30 15 11 11 79
Premium 6 12 15 14 19 66
Vegan/no animal ingredients 6 13 14 12 8 53

Source: Mintel, 2018.

*: genetically modified organism.

The top-growing claims in the U.S. in the savoury snacks category are low/no/reduced allergen, gluten-free, and kosher.

Top ten countries of manufacture of savoury snacks, 2013-2017
Country of manufacture 2013 2014 2015 2016 2017 2013-2017 % of total 2013-2017
United States 7 30 37 30 22 126 34.4
Canada 0 7 4 1 9 21 5.7
South Korea 0 1 0 2 3 6 1.6
Thailand 0 0 1 5 0 6 1.6
China 0 0 1 1 1 3 0.8
Vietnam 0 0 1 2 0 3 0.8
Greece 0 3 0 0 0 3 0.8
Spain 0 2 0 0 0 2 0.5
Israel 0 0 1 1 0 2 0.5
United Kingdom 0 2 0 0 0 2 0.5

Total

366 100.0
Source: Mintel, 2018.

Within the last five years of new snack product launches in the U.S., 34.4% of those new products were manufactured in the U.S. and 5.7% in Canada. From 2013 to 2017, the top countries from which the U.S. imported new snack products were Canada (21 products), South Korea (6), Thailand (6) and China (3).

Top ten ingredients of savoury snacks, 2013-2017
Ingredient 2013 2014 2015 2016 2017 2013-2017
Salt 39 51 48 61 54 253
White sugar 21 39 24 44 45 173
Food acids 26 36 26 34 35 157
Sea salt 21 34 31 31 25 142
Natural X* flavourings 21 26 29 29 26 131
Spices 18 31 17 33 24 123
Waters 21 19 18 31 28 117
Low erucic acid rapeseed oil 20 26 16 26 23 111
Sunflower seed oil 20 19 15 24 27 105
Wheat flour 16 34 14 23 17 104

Source: Mintel, 2018.

*: may be one or more foods.

Top ten flavours of savoury snacks, 2013-2017
Flavour 2013 2014 2015 2016 2017 2013-2017 % of total 2013-2017
Unflavoured/plain 2 3 5 4 4 18 4.9
Salt (sea) 6 2 3 0 1 12 3.3
Hummus 3 0 1 2 0 6 1.6
Peanut butter 0 2 0 2 1 5 1.4
Salt/salted 0 2 1 1 1 5 1.4
Sweet and salty 3 0 0 1 0 4 1.1
Vegetable 0 0 1 1 2 4 1.1
Barbecue 0 1 1 1 0 3 0.8
Sweet and spicy 2 0 0 0 1 3 0.8
Pretzel 0 0 1 1 1 3 0.8

Total

366 100.0
Source: Mintel, 2018.

The top flavours are unflavoured/plain (4.9%), salt (sea) (3.3%), hummus (1.6%), peanut butter (1.4%) and salt/salted (1.4%).

Storage of savoury snacks, 2013-2017
Storage 2013 2014 2015 2016 2017 2013-2017 % of total 2013-2017
Shelf-stable 51 71 67 67 65 321 87.7
Chilled 4 8 5 9 8 34 9.3
Frozen 4 0 1 5 1 11 3.0
Total 59 79 73 81 74 366 100.0
Source: Mintel, 2018.

Shelf-stable was the leading storage category, accounting for 87.7% of the total, followed by chilled (9.3%) and frozen (3.0%).

Distribution channels

In the snack sector, supermarkets (38.4%), hypermarkets (18.3%), and forecourt retailers (14.7%) are major distribution channels, together accounting for 71.4% of retail sales in 2017. However, other channels are growing, such as convenience stores, whose market share increased from 3.1% in 2013 to 3.5% in 2017.

Distribution of savoury snacks: % retail value, 2013-2017
Outlet type 2013 2014 2015 2016 2017 CAGR* % 2013-17
Store-based retailing 97.2 97.2 97.1 96.9 96.7 −0.1
Grocery retailers 79.8 79.6 79.6 79.2 78.9 −0.3
Modern grocery retailers 76.8 76.7 76.7 76.5 76.3 −0.2
Convenience stores 3.1 3.3 3.4 3.4 3.5 3.1
Discounters 1.4 1.4 1.4 1.4 1.5 1.7
Forecourt retailers 13.8 14.1 14.5 14.6 14.7 1.6
Hypermarkets 18.2 18.3 18.3 18.3 18.3 0.1
Supermarkets 40.2 39.7 39.1 38.7 38.4 −1.1
Traditional grocery retailers 3.1 3.0 2.9 2.8 2.7 −3.4
Food/drink/tobacco specialists 1.1 1.1 1.0 1.0 1.0 −2.4
Independent small grocers 1.8 1.7 1.7 1.6 1.5 −4.5
Other grocery retailers 0.2 0.2 0.2 0.2 0.2 0.0
Non-grocery specialists 5.1 5.1 5.0 5.1 5.1 0.0
Health and beauty specialist Retailers 3.2 3.2 3.1 3.1 3.1 −0.8
Other foods, non-grocery Specialists 1.9 1.9 1.9 2.0 2.0 1.3
Mixed retailers 12.3 12.4 12.6 12.6 12.7 0.8
Non-store retailing 2.8 2.8 2.9 3.1 3.3 4.2
Vending 2.1 2.1 2.0 2.0 2.0 −1.2
Internet retailing 0.7 0.8 0.9 1.1 1.3 16.7
Total 100.0 100.0 100.0 100.0 100.0

Source: Euromonitor International, 2018.

*CAGR: Compound annual growth rate.

Internet retailing continued to be a small channel in savoury snacks in 2017, with a value share of 1.3%. This share has been growing, with a compound annual growth rate of 16.7% from 2013 to 2017.

According to Euromonitor International, Internet retailers like Amazon have innovated with their own private-label savoury snacks. For example, in August 2016, Amazon added nuts and trail mixes to its Happy Belly line. In December 2016, the company also launched its new Wickedly Prime range, featuring a variety of snack foods including popcorn, tortilla chips, nuts and vegetable crisps. At the same time, several manufacturers of savoury snacks, including Snyder's-Lance and Link Snacks, have launched their own direct-to-consumer sales sites. Finally, grocery retailers like Wal-Mart and Kroger have dramatically expanded their "buy online, pick up in-store" programs. All of these factors are expected to drive strong growth in Internet retailing in the coming years.

For more information

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Resources

Sector Trend Analysis – Savoury snacks in the United States
Global Analysis Report

Prepared by: Hongli Wang, Market Analyst

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