Sales of snack foods – defined in a new Key Note report as crisps, savoury snacks, nuts and baked snacks – reached £2.2bn in 1999, with the market increasing in value by 4% in that year. The growing popularity of snacking, increasing work pressures, the decline of family meal occasions, and extensive new product developments by the leading suppliers have all helped to maintain healthy sales growth in the market.
Bagged snacks – crisps, savoury snacks, and nuts – account for 90% of all sales and the largest market sector is crisps with sales of £1bn in 1999, or 47.3% of all sales. However, the crisps sector is struggling to maintain growth due mainly to the commodity nature of the market, high household penetration limiting further growth, and low prices. Over 85% of all adults purchase crisps on a regular basis but the majority of these buy standard crisps where there is a strong own-label presence and where new product development activity is limited. However, premium and gourmet crisps are offering some growth potential.
Bagged savoury snacks are the most buoyant sector of the market and these include potato-based brands and increasing numbers of corn-based brands, such as the expanding tortilla chips product sector. Sales of bagged snacks increased by 6.6% to £780m in 1999. In 1999, 49% of all adults purchased these products regularly and household penetration grew, helped by new product developments. The nuts market was valued at £147m in 1999, growing by just 2.8% compared to 1998. The nuts market is biased towards older consumers but new product developments – such as new types of nuts and coated nuts – are being used to try to attract younger consumers. The plain and savoury biscuits market, valued at £113m in 1999, is experiencing limited growth. However, sales of savoury snack biscuits increased by 3% in 1999, helped by the growing popularity of lunch box meals, and brand extensions into the dips market.
Three brand groups – Walkers, Golden Wonder, and KP Foods — dominate the UK snack foods market with Walkers claiming over 50% of the UK crisps sector. Other leading suppliers include Bensons Crisps, Red Mill Snack Foods, The Jacob’s Bakery, and The Snack Factory. The household supplies group Procter & Gamble PLC has become a major player in the market in a relatively short space of time through the success of one brand, Pringles. However, overcapacity, particularly in the crisps sector, has led to some rationalisation and restructuring of the market in recent months.
Sales of snack foods are forecast to continue to grow year-on-year over the next 5 years but at a much slower rate than in previous years. Sales are forecast to increase by 2.4% in 2000 and by 13.7% between 2000 and 2004. Crisps sales will continue to struggle while bagged savoury snacks and savoury snack biscuits will be the main growth areas. New product developments in both sectors will increase sales although healthy eating concerns may require more emphasis on low-fat and premium products.
“Snack Foods” was published by Key Note in February 2000, and is priced at £375. Click here to order your copy
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By GlobalDataTable of Contents
Executive Summary | 1 |
1.Market Definition | 2 |
INTRODUCTION | 2 |
MARKET SECTORS | 2 |
Bagged Snacks | 2 |
Crisps | 2 |
Savoury Snacks | 3 |
Nuts | 4 |
Baked Snacks | 4 |
Plain and Savoury Biscuits | 4 |
Savoury Snack Biscuits | 4 |
MARKET POSITION | 5 |
Table 1: UK Consumer Expenditure on Food and Snack Food Sales as a Proportion of Total Food Expenditure (£m and % share), 1993-1999 | 5 |
MARKET TRENDS | 5 |
Social and Economic Changes | 5 |
Shopping Trips | 6 |
Healthy Eating | 6 |
Global Brands | 6 |
2. Market Size | 7 |
THE TOTAL MARKET | 7 |
Table 2: The UK Snack Foods Market by Value (£m at rsp), 1995-1999 | 7 |
MARKET SECTORS | 7 |
Table 3: The UK Snack Foods Market by Sector by Share (% of sales), 1995, 1998-1999 | 8 |
Table 4: Market Trends in the UK Snack Foods Market by Sector by Value (£m at rsp),1995-1999 | 9 |
Crisps | 9 |
Table 5: Estimated Sales of Crisps by Subsector by Value (£m and % share), 1999 | 10 |
Savoury Snacks | 11 |
Table 6: The Savoury Snacks Sector by Subsector by Value (£m and % share), 1998 and 1999 | 12 |
Nuts | 12 |
Plain and Savoury Biscuits | 12 |
Snack Biscuits | 12 |
3. Industry Background | 13 |
INTRODUCTION | 13 |
INDUSTRY STRUCTURE | 13 |
Table 7: UK Manufacturers by Estimated Share of the Bagged Snacks Market (% of value sales), 1999 | 14 |
RETAIL DISTRIBUTION | 14 |
TRADE ASSOCIATIONS | 15 |
The Snack, Nut and Crisps Manufacturers’ Association | 15 |
The European Snacks Association | 15 |
The Biscuit, Cake, Chocolate and Confectionery Alliance | 15 |
4. Brands | 16 |
MARKET DEVELOPMENTS | 16 |
BRAND NAMES | 16 |
Table 8: Selected Leading UK Crisps and Savoury Snack Brands, 1999 | 17 |
BRAND SHARES | 18 |
Table 9: Leading Brands by Retail Sales in the Grocery Market (£m and % of total value sales), 1999 | 19 |
CONSUMER RESEARCH | 19 |
Table 10: Popularity of Selected Snack Food Brands (% of adults buying on a regular basis), 1999 | 20 |
Table 11: Popularity of Selected Snack Food Brands by Age (% of adults buying on a regular basis), 1999 | 21 |
Table 12: Popularity of Selected Snack Food Brands by Social Grade (% of adults buying on a regular basis), 1999 | 22 |
Table 13: Popularity of Selected Snack Brands in the Regions of the South of England and Wales (% of adults buying regularly), 1999 | 23 |
Table 14: Popularity of Selected Snack Food Brands in Regions in the Midlands and the North (% of adults buying regularly), 1999 | 24 |
BRAND DEVELOPMENTS | 24 |
Walkers | 24 |
Golden Wonder | 25 |
KP Foods | 25 |
Bensons | 25 |
Red Mill Snack Foods | 25 |
Trebor Bassett | 25 |
BRAND ADVERTISING | 26 |
Table 15: Main Media Advertising Expenditure on Snack Foods by the Leading Brands (£000), in the Years Ending September, 1998 and 1999 | 27 |
5. Competitor Analysis | 28 |
INTRODUCTION | 28 |
Table 16: Selected Leading UK Snack Food Companies by Turnover (£m), 1998/1999 | 29 |
Walkers Snack Foods Ltd | 29 |
KP Foods Ltd | 30 |
Golden Wonder Ltd | 31 |
Procter & Gamble Ltd | 31 |
Bensons Crisps PLC | 32 |
The Snack Factory Ltd | 32 |
Red Mill Snack Foods Ltd | 33 |
The Jacob’s Bakery Ltd | 33 |
Kettle Foods Ltd | 33 |
Seabrook Potato Crisps Ltd | 33 |
ADVERTISING AND PROMOTION | 34 |
Table 17: Main Media Advertising Expenditure by Leading Crisp and Snack Manufacturers (£m), Years Ending September 1998 and 1999 | 34 |
6. Strengths, Weaknesses, Opportunities and Threats | 35 |
STRENGTHS | 35 |
WEAKNESSES | 35 |
OPPORTUNITIES | 36 |
THREATS | 36 |
7. Buying Behaviour | 37 |
EATING OCCASIONS | 37 |
CONSUMER PENETRATION | 37 |
Potato Crisps | 37 |
Table 18: Popularity of Potato Crisps (% of adults), 1999 | 38 |
Table 19: Penetration and Profile for Potato Crisps by Age, Social Grade, and Region (% of adults), 1999 | 39 |
Potato Sticks and Other Crisp Savoury Snacks | 40 |
Table 20: Popularity of Potato Sticks and Other Crisp Savoury Snacks (% of adults), 1999 | 40 |
Table 21: Penetration and Profile for Potato Sticks and Other Crisp Savoury Snacks by Age, Social Grade, and Region (% of adults), 1999 | 41 |
Packeted and Tinned Nuts | 42 |
Table 22: Popularity of Packeted and Tinned Nuts (% of adults), 1999 | 43 |
Table 23: Penetration and Profile for Packeted and Tinned Nuts by Age, Social Grade, and Region (% of adults), 1999 | 44 |
8. Outside Suppliers to the Industry | 45 |
INTRODUCTION | 45 |
RAW MATERIALS | 45 |
FLAVOURINGS | 45 |
SPECIALIST MACHINERY | 46 |
PACKAGING | 46 |
9. Current Issues | 47 |
BRAND DEVELOPMENTS | 47 |
Bensons Crisps | 47 |
Hula Hoops | 47 |
CORPORATE DEVELOPMENTS | 47 |
Grupo Maseca | 47 |
Bensons Crisps PLC | 47 |
The Jacob’s Bakery Ltd | 48 |
SNACK BRAND WEB SITES | 48 |
HEALTH ISSUES | 48 |
Procter & Gamble Ltd | 48 |
The Vegetarian Society | 49 |
10. Forecasts | 50 |
FORECASTS 2000 TO 2004 | 50 |
Table 24: Forecast UK Snack Foods Market by Value (£m), 2000-2004 | 50 |
MARKET DRIVERS | 50 |
Table 25: Age Profile of the UK Population (000), 1996, 2001 and 2006 | 51 |
MARKET SEGMENTS | 51 |
Crisps | 51 |
Savoury Snacks | 52 |
Nuts | 52 |
Baked Savoury Snacks | 52 |
Table 26: The Forecast UK Snack Foods Market by Sector by Value (£m and % change), 2000-2004 | 53 |
11. Market Growth | 54 |
GROWTH TO THE YEAR 2004 | 54 |
Figure 1: The Total Market for UK Snack Foods (£m), 1995-2004 | 54 |
12. Company Profiles | 55 |
Bensons Crisps PLC | 56 |
The Jacob’s Bakery Ltd | 58 |
Red Mill Snack Foods Ltd | 60 |
United Biscuits (Holdings) PLC | 62 |
Walkers Snack Foods Ltd | 64 |
13. Company Financials | 66 |
14. Further Sources | 68 |
Associations | 68 |
Periodicals | 69 |
Directories | 71 |
General Sources | 71 |
Hoppebstedt Bonnier Information Sources | 73 |
Government Publications | 74 |
Other Sources | 75 |
Understanding TGI Data | 83 |
Number, Profile, Penetration | 83 |
Social Grade | 84 |
Standard Region | 84 |
Key Note Research | 85 |
The Key Note Range of Reports | 86 |
“Snack Foods” was published by Key Note in February 2000, to order your copy click here
Further information : Tel +44(0)181 481 8750 or E-mail keynotesales@icc.co.uk