Snacking in 2020 Insights

Report

A YEAR FOR THE

RECORD BOOKS

In their quest for good nutrition, convenience and pre-measured noshes and portable meals has helped
enjoyment from the products they buy, consumers have transform almost every category. According to New Nutrition
increasingly found snacks to be the perfect solution. Adapt- Business’ annual report, “Ten Key Trends in Food, Nutrition
ing to increasingly time-pressed lifestyles, they have moved and Health 2020,” snacks give brands great potential for
away from sit-down meals and cooking at home, toward innovation, with low barriers to entry and a high rate of
products that provide convenient, ready-to-eat solutions.1 success—close to 60%. And for consumers, they offer
It has been a win for both the food industry and con- convenience, taste and nutrition with little risk and a low
sumers. The transformation of foods and beverages into price point.2
 Consequently, the global snacks market is thriving. The
overall segment is now estimated at $547 billion annually,
according to data from Euromonitor International, with a
category breakout as follows:

Confectionery The global

snacks market
$187 billion
Savory snacks

$176 billion
Sweet biscuits
(cookies), snack
bars & fruit snacks

$103 billion Ice cream &

frozen desserts

$82 billion

Source:
Euromonitor International.
“Packaged Food—Anytime,
Anywhere? The Evolution of for products that could be consumed anytime/anywhere
Snackification in 2020
and Beyond.” came to a screeching halt with the emergence of COVID-
19 in early 2020. According to a Euromonitor report on the
evolution of snacking and COVID-19, the pandemic literally
More and more, snacks have been expected to see stopped the mobile consumer effect in its tracks. Rather than
strong performance around the world, especially in devel- needing foods and beverages for on-the-go, consumers
oping markets where consumers are increasingly replacing suddenly required products for home consumption. This
homemade snacks with packaged products. In developed also drastically reduced or removed the potential for impulse
markets, consumers are seeking healthier snacks or those purchases, immediate consumption and experiential ele-
that allow for permissible indulgence, noted a Euromonitor ments as consumer shopping habits abruptly shifted from
report on snacks for children. Through 2019, manufacturers in-store to online.4
have risen to the task and introduced products that offer These effects have prompted short- and medium-term
more options to consumers as they get more comfortable issues for the category, but will also bring new opportunities
replacing meals with snacks.3 in broadening consumer groups, snacking occasions and
But all good things evolve, and if anything is true of the direct-to-consumer options. Overall, the future for snacks
food and beverage business, it is to expect the unexpected— looks bright, even if brands must reboot to innovate in a
2020 was a banner year for that. The exploding demand fast-moving and somewhat altered landscape.

2 Snacking in 2020: A Year for the Record Books

Looking forward: It’s still about solutions

The future of snacking may be harder to predict in this At the same time, economic fallout from the pandemic and
post-pandemic world, but these challenges do portend big impacts on segments like tourism may threaten markets
opportunities as brands navigate a new normal in snacking. and prompt SKU rationalization strategies in stores.
What the coronavirus has actually done is to underscore For brands, this means doubling down on the basics of
trends that were already defining the snack category, accord- taste, appeal and value, while also rethinking innovation.
ing to Sally Lyons Wyatt, Executive VP and Practice Leader, A key element for the present will most certainly be that
Client Insights, for IRI in an April 2020 webinar. Snacking itself brands must carefully balance a product’s price with well-
is a lifestyle and will continue to be an important factor, espe- ness and quality attributes, according to Lyons Wyatt. She
cially among younger consumers. noted that there are important insights to be gained from
The category in 2019 was seeing solid growth across all looking at consumers’ attitudes during the recession of
four segments, the IRI data noted, with all snack types getting 2008–2009. The IRI 2009 snacking report, she said, found
a significant share of consumers’ wallets. Interestingly, true that the price-value equation became important to consum-
indulgence was driving growth. ers during that time and will likely be critical again this year.
However, what may be more imperative over the near
term is understanding how consumers snack. For example,
Snacking segment growth (Percent market share)
in the IRI study, which was conducted in 2019 (but also uses
27% 28% insights to inform attitudes and behaviors in 2020), 72% of
25% respondents said they don’t plan what they snack, but rather
20% grab what they need when they need it. The present reality
makes this more difficult and for the time being, shoppers
Growth
Growth may need to plan more. Brands will have to provide access
+4.8% Growth
+3.1% Growth to products in new ways, given that traditional impulse
+2.4%
+1.9% purchasing is largely off the table.
True Permissible Treat Wellness Wide appeal will also have continued importance, Lyons
indulgence indulgence
Wyatt added, noting that 81% of 2009 consumers said a
Source: IRI TSV—Total Core Definition, 52 weeks ending 12/29/19 vs. a year ago.
snack’s desirability to multiple household members was key
to product choice and affordability. Taste expectations will
That said, snacking may not return to its pre-COVID also continue to be high. More than eight in 10 of IRI’s 2019
place, at least over the near term. Consumers will still harbor respondents said that product taste is important . . . and this
fears about the virus—even as economies re-open—and this applies across the snacking spectrum. Now, Lyons Wyatt
will present both possibilities and difficulties.5 For example, said, snacks that are better-for-you, permissibly indulgent,
packaged snacks have an opportunity to capture share of truly indulgent and considered treats all taste great—so the
unpackaged food sales and eat-in food service occasions. bar is high.

Proprietary Research Snacking in 2020: A Year for the Record Books 3

 The evolving snack consumer
Young consumers and Hispanics are key drivers
of snacking growth
Eat snacks instead of meals (at home)
Overall, 44% of consumers often eat snacks instead of meals at
home. Younger consumers (under age 44) and Hispanics (49%) say
this more than average.

AGES 18 – 24 AGES 25 – 34 AGES 35 – 44 AGE S 45 –54

While the concept of snacking is still alive and well, it is

now critical for brands to understand these consumers and 58% 52% 53% 42%
what stands out to them. First and foremost, snacking is now
a lifestyle . . . and more consumers than ever are buying in. Eat snacks instead of meals (at work)
44% of consumers often eat snacks instead of meals at work,
Fundamentally, the forces driving snacking are still present,
with 57% of Hispanics noting this behavior.
including the rise of fast-paced urban lifestyles and technology
use. For example, time pressure has been amplified by tech- AGES 18 – 24 AGES 25 – 34 AGES 35 – 44 AGE S 45 –54

nology, as smartphones created the expectation that people

can work from anywhere, anytime.6 Snacks provide both time
savings and an efficient way to eat well.

Nearly everyone is now a snacker 58% 57% 57% 41%

Convenience, even after COVID, will continue to be

important, especially for young consumers
More than 9 in 10 U.S. consumers Snackers seeking convenience
now snack at least occasionally.7 54% of respondents look for snacks that can be eaten in the car
or on the go.

42% of consumers say they AGES 18 – 24 AGES 25 – 34 AGES 35 – 44 AGE S 45 –54

snack three times a day, with

the average number of snacks
consumed daily at 2.6.8
61% 63% 60% 52%
But people choose snacks for a variety
Snacks replacing meals while on the go
of reasons (Top-two boxes: Extremely/very likely)
46% of consumers often eat snacks instead of a meal because
GENERAL they are on the go.
POPULATION MEN WOMEN

TO SATISFY A CRAVING 77% 77% 78% AGES 18 – 24 AGES 25 – 34 AGES 35 – 44 AGE S 45 –54

TO GIVE THEMSELVES A TREAT 71% 72% 69%

TO REMEDY HUNGER 70% 70% 70%
TO REWARD THEMSELVES 55% 59% 51% 57% 63% 54% 47%
Source: Cargill Proprietary Research, Snack Opportunity Report, 2019. Source: IRI Snacking Survey Report, April 2020.

4 Snacking in 2020: A Year for the Record Books

Snacking doesn’t
just revolve around
millennials Snacking strategies
Millennials may be the snackers in the spotlight, but Although the landscape for snacking saw significant
aging consumers are a growing demographic segment . . . changes in the way people consumed snacks in 2020, the
and they snack too. Older consumers are looking for con- same attitudes that have propelled snacking will continue
venience foods that help them stay healthy and maintain an to shape the overall category. Additionally, many of the
active lifestyle as they age, so new products aimed at target- attitudes that emerged in 2019 will not only resonate with
ing these demands are an emerging niche.9 consumers, but will also become more important. Following
These 50+ consumers now struggle to shuffle work and is an overview of current snack food trends.
home responsibilities as they get older, so they are looking for
helpful solutions.10 According to the report, more than half say Trend 1: Natural nutrition
they want to improve their eating habits with top health issues, As consumers pay more attention to the price-value equa-
including eye/vision health, joint and muscle pain, upper diges- tion, nutrition will be uppermost in their minds. They may still
tive function, sleep problems and stress/anxiety. like their indulgent treats, but better-for-you is a new baseline
In addition to health concerns, taking consumers back for almost all snacks. There is still solid interest in products
to childhood memories with nostalgic snacks is another key such as pasta and crackers made with alternative carbo-
strategy to target this demographic. Nostalgic products can hydrates, cauliflower, and legumes; alternative plant-based
connect these consumers to childhood, helping them recall meats and dairy products; as well as foods and beverages
those emotional memories tied to snacks they ate as a kid, as with low and no sugar.
well as enjoying a sensory experience in the form of texture, This trend is also progressing beyond healthful, natural
exotic tastes and new ingredients.11 ingredients to those that provide added function with ben-
Children represent another growing snack opportunity, as efits like wellness, digestive health and immune support
parents adapt to hectic schedules and being in charge of more growing in relevance.
meals either inside or outside the home, with many younger
parents indicating little interest in cooking at home. That said,
nutrition is an essential factor for this group, with parents Good nutrition from snacks is important for
noting the importance of snacks that are natural, contain good the majority of consumers
nutritional value and avoid certain ingredients like high fructose Snackers seeking vitamins/minerals
corn syrup.12 54% of consumers now want snacks that contain vitamins
and minerals.
Top benefits for kids in snack bars
AGES 18 – 24 AGES 25 – 34 AGES 35 – 44 AGE S 45 –54
KE EPS KIDS FULL UNT I L T HE NE X T M E AL
82%
H EART HEALTHY
66%
P R OM OTES DIGEST I VE HE ALT H
64%
56% 60% 63% 54%
P R OM OTES BONE HE ALT H
Prioritizing probiotics
61%
38% want snacks to contain probiotics to help with digestion,
H ELPS BOOST IM M UNI T Y
but this is even more true among millennials.
58%
Source: Cargill Proprietary Insights: Snack Foods Opportunity Research. October 2019.
AGES 18 – 24 AGES 25 – 34 AGES 35 – 44

Nearly 70% of parents globally are concerned about their

child’s eating habits, and they want to add healthy products
to their diet.13 As these attitudes take hold, this demand will
become more prominent in the snack aisle and provide a good 37% 45% 47%
opportunity for innovation among manufacturers. Source: IRI Snacking Survey Report, April 2020.

Proprietary Research Snacking in 2020: A Year for the Record Books 5

 Strong positioning of these products will also be import- Trend 3: Create experiences
ant. For example, awareness of the importance of digestive Consumers continue to crave new experiences from food,
health is driving demand for snacks with probiotics, as and this was no different in 2020, as many people are still
well as fiber and prebiotics. These ingredients have solid seeing limited re-openings in workplaces and public spaces.
consumer awareness and a strong health halo under which Statistics paint a clear picture:
consumers can draw their own conclusions about the
product's health value. But claims are also possible with The demand for something different
studied ingredients like inulin from chicory root fiber, which
can support a digestive health claim.14 72% say they have become
Snacks for immune support may also provide a new more experimental with their
frontier in the category as consumers prioritize their health choice of food and drink in the
in the wake of COVID-19.15 Emerging ingredients such as
last five years
botanicals and superfoods will add both flavor and function
to snacks.
57% of consumers like products
with new and unusual flavors

46% say they like moments of

indulgence where they don’t pay
attention to nutritional intake

42% deem themselves

adventurous when trying new
food and drink
Trend 2: Provide new snacking occasions Source: FMCG Gurus. “Top Ten Trends.” January 2020.

Consumers want snacks to be accessible and easy, but

the pendulum (for the moment, anyway) has swung toward Snacks have been breaking ground to provide unique
eating at home, rather than on the go. That will not always be experiences through exotic flavors and sensory appeal.
the case, and it will be important for brands to understand According to the IRI Snacking Survey Report, nearly one in
going forward that people will consume snacks wherever three consumers wants snacks with exotic flavors, such as
they happen to be. exotic sweet options and savory and sweet combinations.
Close to one third of consumers now say they don’t eat Brands will have to continue to push the sensory enve-
breakfast or dinner every day, and 22% say they don’t always lope with products that offer new tastes, regional flavors
eat dinner.16 So there is still more opportunity to develop and cultural experiences to match growing consumer
products that blur the lines between meals and snacks. sophistication.
Beyond adding nutrient-dense ingredients, product devel- Nostalgia, for example, has become a powerful strategy—
opers will have to reimagine snacks from the ground up. not just for older consumers, but every demographic group.
This idea has already prompted products for new snack- Boomers may enjoy connecting with memories of their
ing occasions in the morning, like prepared egg bites and childhood or their grandchildren through snacks they ate
pancake cups. Looking ahead, convenient, high-nutrition as a child, but the message also resonates with younger
snacks for lunch may see demand growth as consumers generations who appreciate the opportunity to “kidult” or
anticipate a longer-term future of working from home. reflect on their inner child.18
Snacking kits, unique product pairings and personalized
options will be among the offerings. Many of these options
are already emerging on the market, including combination
products with fresh produce and unique dipping sauces,
combined meat and salty snacks with exotic flavors and
spoonable smoothies.17

6 Snacking in 2020: A Year for the Record Books

Trend 4: Tell a good story
Consumers have been progressively digging deeper into
the mission behind the brands they buy, looking beyond the
Ingredient game plan
ingredients themselves into where they were sourced and No matter what type of snack a company is seek-
how products are processed. Snack brands have an oppor- ing to produce, a better-for-you platform is increasingly
tunity to highlight these specifics with a good story that will critical and best considered in the early stages of
attract many consumers. We know, for example, that nearly development. But adding alternative and functional
two in three global consumers are interested in “clean” ingredients is no easy task and can create both taste
eating.19 What’s more, these shoppers are typically more and texture issues.
engaged in supporting products that are healthy, sustain- Protein, for example, is a great selling point
able and transparent.20 So there is a spectrum of topics that in snacks, representing an important and well-known
will resonate for shoppers, from explaining renewable energy nutrient for sports performance, weight management
usage to highlighting measures that support the community. and satiety. Consumers are now more interested than
ever in adding plant-based proteins to their diet. But
Engagement of label-friendly shoppers plant proteins can cause undesirable textures and
off-notes. Soy protein has been a go-to choice in
69.4%

64.9%

many snack products, but peas now offer a versatile

58.5%
55.1%

option that checks off many of these demands. Pea-

52.4%

51.5%

45.5%

based proteins now come from yellow pea varieties

41.5%

40.4%
36.7%

that minimize off flavors common in other pulses.

34.8%

33.4%

They are not only functional and easy to work with,

26.2%
21.3%
20.6%

19.5%

but also meet requirements for non-allergenic, vegan

17.1%
16.5%

14.2%
10.4%

and clean products, and are a sustainable crop that

can be non-GMO* and organic.
Snacks with lower-sugar profiles have long
I am aware I am willing Fair trade I try to eat I go out of been on consumers’ radar. That attention has
& concerned to pay more & labor a largely my way
about the for a product issues impact plant-based to buy locally prompted the development of various natural alter-
challenges I know was what I buy diet sourced food native sweeteners, including stevia-based ingredients
we will face produced with
in feeding renewable and those made from sugar alcohols such as erythritol.
the growing energy But formulators have learned that substituting sugar
global
population can be easier said than done. It often takes a com-
bination of ingredients to replace sugar’s taste and
T O TA L CLEAN LABEL NO N-CLE AN L A BEL
function. Stevia and erythritol, for example, can be
NEUTRAL
used together to add sweetness and reduce the bitter
Source: Inside the Bottle Research, in partnership with New Hope Network NEXT Data
and Insights, collected week of April 27, 2020.
aftertaste in low-sugar products.
Chicory root fiber is another versatile ingredient that
But even as consumers hunger for products that adhere addresses sugar reduction by adding both sweet taste
to principles around “clean” eating, it is also important to be and replacing sugar’s texture and bulk. It is a functional
authentic in the story telling. Don’t overpromise or green- ingredient that adds additional value to snacks because
wash. The key, said Lyons Wyatt, is to deepen connections it contains inulin, a naturally sourced prebiotic fiber
to consumers, especially in the post-COVID world. That clinically proven to support digestive health.21 Adding
means understanding who your customer is and telling them prebiotics, fiber and plants to products is now a top
what your brand is about without a strong sell. strategy in positioning snacks for digestive wellness.22
Prebiotics and fiber are merely the beginning
as innovative new snacks continue to break
ground with emerging ingredients such as probiotics
and superfoods like pumpkin, flax seed, and kale which
could take function in snacks to the next level.

Proprietary Research Snacking in 2020: A Year for the Record Books 7

 Takeaways: Snacking in a new normal

Although viruses don’t go away, solutions for COVID-19 and taste, but they also want products to address their
will emerge—and with them, a new normal for the snack cate- specific needs and lifestyles. And this transcends genera-
gory. The underlying socioeconomic factors for snacking have tions. Older consumers may have more immediate concerns
remained steady, but snack manufacturers will have to con- about their health, but staying healthy longer is a growing
tend with more permanent shifts in shopping, including the priority for younger consumers, so health ingredients and
loss of impulse touchpoints and the rise of contactless retail.23 messaging won’t be lost on them.
But there are opportunities to create new impulse environ- The ultimate goal is to make snacks personal, whether
ments online and innovative approaches to e-commerce, a product addresses a specific health demand, connects a
including direct-to-consumer sites with local delivery. consumer with their childhood, or provides a new format to
There are also plentiful opportunities to target new snack- make their life easier. Forward-thinking brands will be looking
ers and additional eating occasions. Consumers in general to customize their products to specific health concerns and
have big expectations for snacks regarding value, nutrition individual lifestyle needs.

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References
1 Euromonitor International. “Packaged Food: Anytime, Anywhere? 13 Ibid. Euromonitor International. “Packaged Food: Snacks for Children.”
The Evolution of Snackification in 2020 and Beyond.” July 2020. 14 Ibid. New Nutrition Business.
2 Mellentin, J. “Ten Key Trends in Food Nutrition and Health 2020.” 15 Ibid. Euromonitor International. “Packaged Food: Anytime, Anywhere.”
New Nutrition Business. https://www.new-nutrition.com/
16 FMCG Gurus. “Top Ten Trends for 2020.” January 2020. https://fmcggurus.
3 Euromonitor International. “Packaged Food: Snacks for Children— com/top-trends-2020/
Targeting a New Generation of Parents.” April 2020.
17 Ibid. IRI.
4 Ibid. Euromonitor International. “Packaged Food: Anytime, Anywhere.”
18 Ibid. Euromonitor International. “Packaged Food: Moving Beyond
5 Ibid. Millennials.”
6 Ibid. 19 HealthFocus International (HFI). “Clean Conscience Eating 2019.”
7 International Food Information Council (IFIC). Food and Health Survey 20 “Inside the Bottle.” Research in partnership with New Hope Network NEXT
2020. https://foodinsight.org/2020-food-and-health-survey/ Data and Insights, collected week of April 27, 2020.
8 IRI. “How America Eats. Snacking Lifestyles are Here to Stay.” 21 Wilson, B; Whelan, K. “Prebiotic Inulin-Type Fructans and Galacto-
Sally Lyons Wyatt webinar. April 14, 2020. Oliggosaccharides: Definition, Specificity, Function and Application in
9 Euromonitor International. “Packaged Food: Moving Beyond Gastrointestinal Disorders.” Journal of Gastroenterology and Hepatology.
Millennials—Snacks for Aging Consumers.” February 2020. March 2017:32 Supplement 1:64-68. Doi:10.1111/jgh.13700.
10 Ibid. 22 Ibid. New Nutrition Business.
11 Ibid. 23 Ibid. Euromonitor International. “Packaged Food: Anytime, Anywhere.”
12 Cargill Proprietary Insights. Snack Foods Opportunity Research.
October 2019.

*There is no single definition of “non-GMO” in the U.S. Contact Cargill for source and processing information.

8 Snacking in 2020: A Year for the Record Books