The U.S. Market for Salted Snacks

 
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Published Jun 1, 2002 | 282 Pages | Pub ID: LA728892

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This Packaged Facts report on the market for Salted Snacks provides a comprehensive and in-depth analysis of all the products and services that shape the Salted Snack market. The report analyzes seven major salted snack markets - potato chips, tortilla/corn chips, popcorn, pretzels, snack nuts, extruded salted snacks, and other salted snacks. Each product category is described in extensive detail, with current product information for each category, including descriptions of new products and new ones still in development. Up-to-the minute information on retail distribution channels, consumer and demographic information, and advertising and promotional trends provide the strategic information needed to keep pace with this changing market. Data is given for the U.S. market, with a base year of 2001 and forecasts through 2006. Historical data are provided for years 1997 through 2001. Major competitors in the market are discussed in detail, including competitor market shares, brands, and financial information.
  1. 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
  2. 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)
  3. 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)
  4. 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
  5. 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
  6. 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