However, since most other FMCG grocery categories are also experiencing volume declines, it’s far from a crisis for salty snacks and nuts, he told BakeryandSnacks.
A bigger shake-up is coming from rise of private label at the expense of brands.
Flat growth
According to IRI data for the past 52 weeks to August 19, 2017, the growth in UK snack sales is mostly being driven by price inflation – as value sales were up by 1% to £2.85bn ($3.72bn) year-on-year – underlying a flat volume of 336m kg.
Abotorabi noted “a broader set of snacking options from smaller, perceived healthier segments – for example, sports nutrition bars and bites, popcorn and meat-based snacks – also impacted on the expandability of the crisps and salty snacks categories.
“Non-potato categories are gaining more traction in an increasingly broad and diverse UK snacking landscape.
“There are continued signs from both branded and private label players of a focus on more premium, healthier for you options such as rice, pea or corn-based crisps,” he added.
The UK crisps segment saw a 2% increase in value sales to £1.137m in 2017 from £1.115m the year prior. Volume sales also grew 2.3% to 138m kg in 2017 from 135m kg the year prior.
Top 10 UK crisp brands
Source IRI 52w/e August 19, 2017. IRI is a Chicago-based market research firm (@iriworldwide)
A private increase
IRI data showed own label made gains at the expense of brands, partly influenced by an increase in private label ranges in this category.
This was particularly prevalent in potato chips and other salty snacks, which saw a 3% NPD increase for own label versus no change on the prior year for national brands.
The market researcher noted Pringles lost share to the likes of Doritos, Hula Hoops and own label, however, this was influenced by the brand’s reduction in promotional sales and display activity during the period.
Some retailers have also boosted their own label large sharing bag ranges.
Value sales of the UK's snacks sector (including baked and pork scratchings) slumped by 0.7% to £1.339m in 2017 from £1.348m the year prior; while volume sales also saw a decrease, of 2.1%, to £155m in 2017 from £158m the year prior. dl
Top 10 UK snacks, including baked and pork scratchings
Source IRI 52w/e August 19, 2017. IRI is a Chicago-based market research firm (@iriworldwide)
Tough starts
Abotorabi said snack manufacturers are finding it harder to launch and sustain new product launches despite no massive influx of new players.
“The new launches – such as Walkers Stax, McCoy’s Chip Shop and Doritos Heat Burst in the latest year – haven’t impacted the topline sales overall within crisps and salty snacks category, and none have yet to surpass the £10m ($13m) sales mark for annual sales,” he said.
The one exception is Planters, which added £3.5m ($4.5m) in sales to the nuts category.
The UK nuts segment for the period saw a 3.9% increase to £368m from £355m the year prior. Volume sales jumped 0.4% to 42.5m kg from 42.3m kg in 2016.
Top 10 UK nut brands
Source IRI 52w/e August 19, 2017. IRI is a Chicago-based market research firm (@iriworldwide)
“It is clear the continued impact of range rationalisation makes it harder for crisps and snacks producers to launch and sustain new product launches,” said Abotorabi.
Taste is king but room for health
The analyst added consumers still view snacks as convenient, especially as a meal replacement.
IRI’s 2017 regional shopper survey highlights 72% of UK consumers buy ‘healthy food’, over half of which (53%) are buying to improve their general health.
“Given this focus, we should expect to see more development in perceived ‘healthier’ snacking segments,” he said, stating that taste, though, is still “king ahead of health.
“Brands such as Graze are a good example, moving from niche to mainstream within the broader snacking landscape, disrupting categories and transcending a mix of snack product types.”