With growing economies and rapidly changing lifestyles, busy
consumers are increasingly opting to snack more often than usual to get a quick
energy boost. This scenario is a predominant factor driving growth in the
sector. Improving consumer confidence across high-potential countries such as
the US, China, and India suggests consumer readiness to spend on convenience,
benefitting ready-to-eat foods such as savory snacks.
- The number of single households worldwide is rising and
brands such as Pringles and Cheez-it have capitalized on this by offering
single-serve formats to capture the potential consumer base.
- The rising demand for healthy and natural products is
prompting companies to strategize accordingly. Hershey’s acquisition of Amplify
Snack Brands, which makes SkinnyPop popcorn (claimed to be made with natural
ingredients), is an example of how companies are striving to capitalize on the
demand for healthy snacks.
- The rising obesity rates across the globe are prompting
governments to introduce stringent rules on ingredients used in food products.
Consequently, brands failing to reformulate could lose their competitive edge
as consumers switch to healthier alternatives.
- Regulatory authorities across the world are striving to
promote sustainable practices, especially with reference to package materials.
Failure to demonstrate sustainability could impact a brand’s reputation, with
eco-conscious consumers more than ready to boycott such products.