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The U.S. Market for Salted Snacks
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Jun 1, 2002
282 Pages - Pub ID: LA728892
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- Executive summary
Scope and Methodolgy
- Report Methodology
- Products Covered
- Excluded From the Report
- Definitions Are Arbitrary
The Market
- Market Size and Growth
- Table 1-1: U.S. Retail Dollar Sales of Salted Snacks, by Category, 1997-2006 (dollars): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other Salted Snacks
- Factors Affecting Market Growth
- Market Composition
- Figure 1-1: Share of U.S. Salted Snack Sales by Product Category, 2001 (percent): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other
The Marketers
- Snack Market a Fragmented Industry
- Frito-Lay is Market Leader in Most Categories
- Procter & Gamble is the Second Place Market Leader
- General Mills Another Market Leader
- Nabisco Dominates Nuts Category
- ConAgra Popcorn Leader
- Smaller Firms Fight for Market Share in Some Categories
- New Product Trends
Distribution and Retail
- Salted Snacks Distributed by Variety of Methods
- Salted Snacks Sold in Variety of Retail Outlets
- Leading Retail Outlet—Supermarkets
- Figure 1-2: Share of U.S. Salted Snack Sales by Retail Outlet, 2001 (percent): Supermarkets, Convenience Stores, Mass Merchandisers, Grocery Stores, Warehouse Clubs, Vending, Drugstores
The Consumer
- Notes on Simmons Market Research Bureau Data
- Salted Snack Use Fairly Consistent For All Product Categories
- Potato Chips Used by Nearly Everyone
- Tortilla and Corn Chips are Used by 75% of Decision Makers
- Popcorn Second Most Widely Used Salted Snack
- The Products
Salted Snacks
- Scope of the Report
- Excluded from the Report
Snacks
- What is a Snack?
- Why Eat a Snack?
- Snacks Also Eaten with Meals
- Difference Between Meal and Snack
- Meals and Family Schedules
- Four Meals a Day
- Definitions are Arbitrary
Potato Chips
- What Started as a Joke
- Production Capabilities Make Chips Mainstream
- How are Potato Chips Made?
- Potato Chips Certainly Not Boring
- All Natural and Organic Chips
Tortilla/Corn Chips
- Historic Roots
- Dramatic Growth
- Tortilla Chips Available in Stores
- How Corn Chips Are Made and Processed
- Growth in Hispanic Population
- Different Varieties
Popcorn
- Long History
- Products Covered
- Popcorn—A Lower Calorie Snack
- Microwave Popcorn Types Abound
- Healthy Salted Snack
- Microwave Growth
Pretzels
- Little Reward
- How They Are Made and Processed
- Low-fat and Health
- Pretzel Popularity
Snack Nuts
- Traced to Ancient Times
- Actually a Legume
- Single Varieties and Mixes
- Who Typically Purchases
- Where Produced
- Healthier Snacks
- Source of Fiber
Extruded Snacks
- What Are They?
- The First Products
- Healthier Varieties
Other Salted Snacks
- What Are Other Salted Snacks
- Fabricated Chips
- Miscellaneous Salted Snacks
New Product Trends
- Shapes and Flavors
- Ethnic Foods
- Low-fat and Fat Free
- Natural and Organic
Packaging
- Most Salted Snacks Bagged
- Unusually Wide Range of Package Sizes
- Other Packagings
- Freshness Dating
Government Regulation
- Federal Regulations
- Nutrition Labeling and Education Act
- Allergy Labels
- Approval of Olestra
- Trans Fatty Acids and Expanded Labeling
- Genetically Modified (GMO)
- The Market
Market Size and Growth
- 2001 Salted Snacks Sales Reach Nearly $19 Billion
- Table 3-1: U.S. Retail Sales of Salted Snacks, 1997-2001 (dollars and pounds)
- Figure 3-1: U.S. Retail Sales of Salted Snacks 1997-2001 (dollars)
- Potato Chip Sales Exceed $5.5 Billion
- Table 3-2: U.S. Retail Sales of Potato Chips, 1997-2001 (dollars and pounds)
- Tortilla and Corn Chip Sales Reach Nearly $4.8 Billion
- Table 3-3: U.S. Retail Sales of Tortilla and Corn Chips, 1997-2001 (dollars and pounds)
- Snack Nuts Are the Fastest Growing Segment
- Table 3-4: U.S. Retail Sales of Snack Nuts, 1997-2001 (dollars and pounds)
- Popcorn Sales Grow 4.3% Annually
- Table 3-5: U.S. Retail Sales of Popcorn, 1997-2001 (dollars and pounds)
- Pretzel Sales Flat
- Table 3-6: U.S. Retail Sales of Pretzels, 1997-2001 (dollars and pounds)
- Extruded Sales Top $1 Billion
- Table 3-7: U.S. Retail Sales of Extruded Snacks, 1997-2001 (dollars and pounds)
- Other Snack Sales Grow to Over $2.4 Billion
- Table 3-8: U.S. Retail Sales of Other Salted Snacks, 1997-2001 (dollars and pounds)
Market Composition
- Potato Chips Lead Market
- Table 3-9: Share of U.S. Salted Snacks Sales by Product Category, 2001 (dollars and percent): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other
- Figure 3-2: Share of U.S. Salted Snack Sales by Product Category, 2001
- Snack Nuts Outperform All Other Categories
- Table 3-10: Compound Average Growth Rate of U.S. Salted Snacks Sales by Product Category, 1997-2001 (dollars and percent): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other
- Supermarkets Largest Salted Snack Distribution Channel
- Table 3-11: Sales of U.S. Salted Snacks Sales by Distribution Category, 2001 (dollars and percent): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other
- Holiday Salted Snack Sales
- Figure 3-3: Share of U.S. Salted Snack Sales by Retail Outlet, 2001 (percent): Supermarkets, Convenience Stores, Mass Merchandisers, Groceries, Warehouse Clubs, Vending, Drugstores, Other
Factors Affecting Market Growth
- Snacks Meet the Increasing Demands of Busy Lifestyles
- Strong Economic Growth
- Salted Snacks and Home Movies
- Cross Merchandising Options Grab New Sales
- Targeted Merchandising Increases Sales
- Grab and Go Packaging
- Consumer Backlash Against Low-fat Snacks
- Consumers’ Concerns about Nutritional Value
- Olestra Sales Fizzle After Successful Start
- New Product Development Leads Market Growth
- Convenience Foods Compete with Salted Snacks
- Private Label and Competition
- The Success of Innovation
Projected Retail Sales
- Strong Growth Projected
- Table 3-12: Projected U.S. Retail Sales of Total Salted Snacks Market, 2001-2006 (dollars)
- New Flavors Make Old Favorite New
- Table 3-13: Projected U.S. Retail Sales of Potato Chips, 2001-2006 (dollars)
- Tortilla/Corn Chip Market Grows to $6.9 Billion
- Table 3-14: Projected U.S. Retail Sales of Tortilla and Corn Chips, 2001-2006 (dollars)
- Snack Nut Sales Faster Than Other Segments
- Table 3-15: Projected U.S. Retail Sales of Snack Nuts, 2001-2006 (dollars)
- Movie Watching Increases Popcorn Sales
- Table 3-16: Projected U.S. Retail Sales of Popcorn, 2001-2006 (dollars)
- Future for Pretzels in New Flavors
- Table 3-17: Projected U.S. Retail Sales of Pretzels, 2001-2006 (dollars)
- Children’s Sales Will Drive Extruded Market
- Table 3-18: Projected U.S. Retail Sales of Extruded Snacks, 2001-2006 (dollars)
- New Flavors Drive Other Salted Snack Growth
- Table 3-19: Projected U.S. Retail Sales of Other Salted Snacks, 2001-2006 (dollars)
- The Marketers
Snack Market a Fragmented Industry
- Smaller Companies Hold Market Shares of Less Than 1%
- Frito-Lay Market Leader in Most Categories
- Plenty of Market Available
- Brand Recognition
- Most Marketers Compete in More than One Category
- Procter & Gamble is Number Two Market Leader
- General Mills Market Leader
- Nabisco Dominates Nuts Category
- ConAgra Popcorn Leader
- Smaller Firms Fight for Market Share in Some Categories
- Table 4-1: Selected Salted Snack Marketers and Brands, 2001 (50 marketers)
Marketer and Brand Shares
- Note on Share Data
- Frito-Lay Leads the Market
- Figure 4-1: Marketer Shares of Salted Snacks Market, 2001 (percent): Frito-Lay, Private Label, Kraft/Nabisco, Procter & Gamble, General Mills, ConAgra, Snyder’s of Hanover, Wise Foods, Utz, and Other
- Seven Companies on Second Tier
- Table 4-2: Share of U.S. Salted Snacks Sales by Marketer, 2001 (percent): 8 marketers
- Frito-Lay Controls More Than 68% of the Potato Chip Market
- Table 4-3: Marketer and Brand Shares of Potato Chip Sales, 2001 (percent): 25 marketers
- Frito-Lay Holds a Near Monopoly in the Tortilla/Corn Chip Market
- Table 4-4: Marketer and Brand Shares of Tortilla/Corn Chip Sales, 2001 (percent): 7 marketers, 13 brands
- Nabisco’s Planter Brand—Snack Nut Leader
- Table 4-5: Marketer and Brand Shares of Snack Nut Sales, 2001 (percent): 12 marketers, 16 brands
- ConAgra Leads Popcorn Market
- Table 4-6: Marketer and Brand Shares of Microwave and Ready-to-Eat Popcorn Sales, 2001 (percent): 9 marketers, 15 brands
- Snyder’s of Hanover Competing Force in Pretzel Market
- Table 4-7: Marketer and Brand Shares of Pretzel Sales, 2001 (percent): 20 marketers, 22 brands
- Cheetos Brand Dominates Cheese Snack Category
- Table 4-8: Marketer and Brand Shares of Extruded Snacks, 2001(percent): 14 marketers, 15 brands
- Table 4-8: Frito-Lay and Procter & Gamble Compete for Top Spot
- Table 4-9: Marketer and Brand Shares of Other Salted Snacks, 2001 (percent): 13 marketers, 25 brands
- Table 4-9: Competitive Overview
- Shelf Life of Products—Highly Perishable
- Only National Marketer of Traditional Chips—Frito-Lay
- Regional Brands Depend on Regional Loyalties
- All Marketers Strive to Keep Their Products Hot
- Pricing
- Production Costs
- Shelf Space
- Effective Marketing
Company Profile: ConAgra Foods, Inc.
- Company Overview
- Growth Through Acquisitions
- Building a Portfolio of Salted Snacks
- Packaged Foods Segment
- Refrigerated Foods Segment
- Agricultural Products
- Total Sales up 7% in Fiscal 2001
- ConAgra’s Strategic Directive for Fiscal Year 2002
Company Profile: General Mills, Inc.
- Company Overview
- Wide Range of Big Name Products
- Salted Snacks Are Popcorn, Snack Mixes, and Corn Snacks
- Fiscal 2001 Highlights
- General Mills Growth Formula
- Pillsbury Acquisition
Company Profile: Herr Foods, Inc.
- Company Overview
- Home Town Feeling
- Sales Down in 2001 for Most Product Categories
- Products Compete with the Big Boys
Company Profile: Lance, Inc.
- Corporate Overview
- Wide Range of Snack Food Products
- Tamming Foods Ltd. and Cape Cod Potato Chips Acquired
- Sales Increase to $582.9 Million
- Strategic Growth Objectives
Company Profile: PepsiCo, Inc./Frito-Lay Inc.
- Company Overview
- PepsiCo has Leadership Positions in Several Markets
- Pepsi-Cola Beverages
- Tropicana Beverages
- Quaker Oats Acquisition
- Strategic Move—From Beverage to Food Company
- SoBe Acquisition
- Frito-Lay Subsidiary Overview
- Distribution Channels
- Sales to Increase to $26.6 Billion
- Frito-Lay Leads Salted Snack Market
Competitive Profile: Philip Morris Companies, Inc./Kraft Foods
- Company Overview
- Marlboro Built Philip Morris
- Nabisco, Inc. Purchase
- Philip Morris’ Sales Reach $89.9 Billion
- Five Powerful Business Segments
- Kraft Company Overview
- Kraft Foods Sales Exceed $26 Billion
- Kraft Strategic Direction
Company Profile: The Procter & Gamble Company
- Company Overview
- Leading Marketer of Potato Crisps
- Torengos Tortilla Chip Introduction
- Major Consumer Brands
- Sales Drop to $39.2 Billion
- The 2005 Initiative
- Strategic Focus
- New Alliance with Coca Cola
- Olestra Plant Sold
Company Profile: Snyder’s of Hanover, Inc.
- Corporate Overview
- Snyder’s Product Line Focuses on Pretzels
- Wide Variety of Pretzel Offerings
- Eat Smart Snacks Appeal to Health Conscience Consumers
- Snyder’s Purchases Revonah Pretzel Co.
Company Profile: UTZ Quality Foods, Inc.
- Company Overview
- Business Centered Around Hanover
- Utz’s Products
- UtzFocus Increases Sales
- Promotional Alliance with NASCAR’s Rusty Wallace
Competitive Profile: Wise Foods, Inc.
- Corporate Overview
- Ninth Place Salted Snack Marketer
New Product Trends
- Snack Nuts Dominates New Product Introductions
- Table 4-10: Selected New Product Introductions, 2001-2002 (31 marketers, 36 brands)
- Gourmet Snack Trends
- Table 4-11: Selected New Product Introductions, Gourmet, 2000-2002 (17 marketers, 19 brands)
- Natural and Organic Product Introductions
- Table 4-12: Selected New Product Introductions, Natural and Organic, 2001-2002 (5 marketers, 7 brands)
- New Product Introductions Based on New Packaging
- Table 4-13: Selected New Product Introductions, Packaging, 2000-2002 (10 marketers, 13 brands)
Advertising and Promotion
- Over $208.4 Million Spent on Salted Snack Advertising
- Frito-Lay Big Advertising Spender
- Chips and Nuts Also Heavily Advertised
- Frito-Lay Invests in Online Marketing
- Co-Branding and the Power of One Advertising
- Distribution and retail
Distribution
- Salted Snack Products Are Highly Perishable
- Central Distribution Systems
- Distribution of Salted Snacks by a Variety of Methods
- Warehouse Delivery Cheapest Method of Distribution
- Longer Shelf Life Products Use Warehouse Delivery
- Direct Store Delivery (DSD) Route—Historic Roots
- Direct Store Delivery Route Sales Operations
- Route Sales—Not Just a Delivery Person
- Computer Technology
- Frito-Lay Success in Part Due to DSD
- DSD Allows for More Control
Retailing
- Salted Snacks Sold in Variety of Retail Outlets
- Retail Segments Blur
- Table 5-1: Sales of U.S. Salted Snacks by Distribution Category, 2001 (dollars and percent): Potato Chips, Tortilla/Corn Chips, Snack Nuts, Popcorn, Pretzels, Extruded Snacks, Other
- Figure 5-1: Share of U.S. Salted Snack Sales by Retail Outlet, 2001 (percent): Supermarkets, Convenience Stores, Mass Merchandisers, Grocery Stores, Warehouse Clubs, Vending, Drugstores
- Leading Retail Outlet—Supermarkets
- Supermarket Definition
- Kroger Co. Number One Supermarket Chain
- Supermarkets Aggressively Market Salted Snacks
- Supermarkets Charge Shelf Fees
- Supermarkets Consolidate
- Mass Merchandisers Second Largest Retailer
- Mass Merchandisers Challenge Supermarkets
- Wal-Mart Leads Mass Merchandising Category
- Mass Merchandisers Increasingly Like Supermarkets
- New Wal-Marts Put Local Stores Out of Business
- Convenience Stores
- Convenience Store Sales Exceed $90 Billion
- Drugstores
- Warehouse Clubs
- Sales by Snack Category and Retail Outlet
- Table 5-2:
- Share of U.S. Salted Snack Sales, by Outlet Type, by Category, 2000
- (percent): Supermarkets, Convenience Stores, Mass Merchandisers, Grocery Stores, Vending, Warehouse Clubs, Drugstores; Potato Chips, Tortilla/Corn Chips, Nuts, Popcorn, Pretzels, Extruded Snacks
- The Consumer
Consumers’ Dietary Concerns
- Fat—A Leading Dietary Issue
- Dietary Fat Associated with Cardiovascular Disease
- Saturated Fat the Real Culprit
- Cancer Risks From Fat
- Some Fats Are Beneficial
- Trans Fats the New Villain
- Syndrome X
- Obesity Epidemic and Dietary Fat
- Sugar also Packs on the Pounds
- Fatty Foods Synonymous with Indulgence
- Consumers are Budgeting Fat Intake
- Concern over Salt Fading
- FMI Survey and Consumers’ Changing Dietary Concerns
- Table 6-1: Nature of Consumers’ Concerns about Nutritional Content, January: 1997-2001 (percent)
demographics of Salted Snack Consumers
- Simmons Market Research Bureau Data
- Simmons Data Product Categories
- Salted Snack Use Fairly Consistent for All Product Categories
- Potato Chips Used by Nearly Everyone
- Table 6-2: Household Use of Potato Chips, by Degree of Use in Last 30 Days, 2001 (number and percent): Light, Medium, Heavy
- Married with Children the Heaviest Users of Potato Chips
- Table 6-3: Demographic Segmentation of the Decision Makers in Households Using Potato Chips, 2001 (percent and index): Age, Marital Status, Children, Household Income, Education
- Heavy Users of Potato Chips are Married
- Table 6-4: Demographic Segmentation of the Decision Makers in Households Exhibiting Heavy Use of Potato Chips, 2001 (percent and index): Age, Marital Status, Children, Household Income, Education
- Plain is the Most Favorite Flavor
- Table 6-5: Household Use of Potato Chips, by Flavor Used Most Often, 2001 (number and percent): Plain, Barbecue, Sour Cream and Onion, Cheese, No Salt, Cajun
- Lay’s is the Brand Used Most Often
- Table 6-6: Household Use of Potato Chips, by Brand Used Most Often, 2001 (number and percent): Lay’s, Ruffles, Pringles, Wise, Jay’s, Herr’s, Keebler
- Tortilla Chips and Snacks are Used by 75% of Decision Makers
- Table 6-7: Household Use of Tortilla and Corn Chips and Snacks, by Degree of Use in Last 30 Days, 2001 (number and percent): Light, Medium, Heavy
- Tortilla Chips and Snacks Use Similar to Potato Chip Usage
- Table 6-8: Demographic Segmentation of the Decision Makers in Households Using Tortilla Chips and Snacks, 2001 (percent and index): Age, Marital Status, Children, Household Income, Education
- Heavy Users of Tortilla Chips and Snacks Similar to Heavy Users of Potato Chips
- Table 6-9: Demographic Segmentation of the Decision Makers in Households Exhibiting Heavy Use of Tortilla Chips and Snacks (percent and index): Age, Marital Status, Children, Household Income, Education
- Favorite Brands are Doritos and Tostitos
- Table 6-10: Household Use of Tortilla Chips and Snacks, by Brand Used Most Often, 2001 (number and percent): Doritos, Tostitos, Fritos, Planters, Wise, Charles, Laura Scudder
- Most Use One Package or Less in the Nut Category
- Table 6-11: Household Use of Nuts, by Degree of Use in Last 30 Days, 2001 (number and percent): Light, Medium, Heavy
- Use of Nuts Increases with Age and Income
- Table 6-12: Demographic Segmentation of the Decision Makers in Households Using Nuts for Snacking and Cooking (percent and index): Age, Marital Status, Children, Household Income, Education
- Those with Children Heavy Nut Users
- Table 6-13: Demographic Segmentation of Decision Makers in Households Exhibiting Heavy Use of Nuts for Snacking and Cooking (percent and index): Age, Marital Status, Children, Household Income, Education
- Favorite Type of Nut—Peanuts
- Table 6-14: Types of Nuts Used Most Often, 2001 (percent and index): 16 Types
- Leading Brand Is Planters
- Table 6-15: Household Use of Nuts, by Brand Most Often Used, 2001 (number and percent): Planters, Blue Diamond, Diamond, Fisher, Mauna Loa, Azar, Other
- Popcorn Second Most Widely Used Salted Snack
- Table 6-16: Household Use of Popcorn, by Degree of Use, 2001 (number and percent): Light, Medium, Heavy
- Demographics Have Little Say In Popcorn Use
- Table 6-17: Demographic Segmentation of the Decision Makers in Households Using Popcorn, 2001 (percent and index): Age, Marital Status, Children, Household Income, Education
- Heavy Users Have Higher Income
- Table 6-18: Demographic Segmentation of Decision Makers in Households Exhibiting Heavy Use of Popcorn, 2001 (percent and index): Age, Marital Status, Children, Household Income, Education
- Leading Popcorn Brand—Orville Redenbacher’s
- Table 6-19: Household Use of Popcorn, by Brand Most Often Used, 2001 (number and percent): Orville Redenbacher’s, Betty Crocker Pop Secret, Jolly Time, Jiffy Pop, Crunch’N Munch, Cracker Jack, Newman’s Own, Pops-Rite, , Wise , Pillsbury, , Pop Deluxe, Smart Food, Planters TV Time , Cape Code, Other Brands
- Pretzels Versus Other Salted Snacks
- Table 6-20: Household Use of Pretzels, by Degree of Use, 2001 (number and percent): Light, Medium, Heavy
- Income and Age Determinant in Pretzel Use
- Table 6-21: Demographic Segmentation of the Decision Makers in Households Using Pretzels, 2001 (percent and index): Age, Marital Status, Children, Household Income, Education
- Income and Age Determine Heavy Pretzel Use
- Table 6-22: Demographic Segmentation of Decision Makers in Households Exhibiting Heavy Use of Pretzels, 2001 (percent and index): Age, Marital Status, Children, Household Income, Education
- Salted Pretzels Preferred Over Unsalted
- Table 6-23: Household Use of Pretzels, by Type, 2001 (number and percent): Salted, Unsalted
- Rold Gold Preferred Pretzel Brand
- Table 6-24: Household Use of Pretzels, by Brand Most Often Used, 2001 (number and percent): Rold Gold, Snyder’s, Mister Salty, Bachman, Keebler Butter Pretzels, Andersons, Combos, Other
Appendix I: Examples of consumer advertising
and promotions
Appendix II: Addresses of selected marketers
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