Sector research reveals major potential for private label snacking categories
Research from ingredients group Kerry has revealed the global snacks market is now worth $115 billion a year, with annual growth of 2% projected to 2023, reports Neill Barston.
According to findings from the company’s latest studies, there remains significant potential within the private label market segment, with the segment presently only accounting for 7% of present sales volumes, according to Nielsen data.
In response, Kerry is set to release an easy-to-navigate online microapp designed to provide information about the results and identify the opportunities now shaping the private label snacks space – amid continued expansion in sales of a broad range of sweet treats amid the pandemic.
As the company noted, coronavirus has driven a significant shift in consumer retail behaviour that is also opening up additional markets in private labelling. Snacks are similar to other categories in that in the disruption caused by the pandemic, consumers are potentially open to purchasing private label products from many retailers.
However, store brand and national brand names are front and centre and overcoming their established snack market profile position will require a very thoughtful approach based on high-quality current consumer research and interests.
Kerry’s detailed proprietary private label research uncovered two main types of private label consumers, as well as illuminates prevailing perceptions of brands and product attributes across key categories. Insights related specifically to snacks have been broken out and discussed in order to inform and provide direct guidance on tackling snack product innovation. P
rivate label consumers can be structured into two key groups: “adventure seekers” and “practical traditionalists.” Each of these types has unique and important attributes and desires that should be fully taken into account when creating new snack products.
Commenting on the snack research—titled Seizing the Private Label Snack Category—Jocelyn Carter, Activation Marketing Director, Kerry says: “Our Kerry online private label snacks microapp report dives into private label snacks trends, telling retailers what types of product attributes are important to each type of consumer in snacks. Snacks are highly profitable areas of any business and today is no better time to develop a private label brand or expand.”
“Kerry’s private label snack research microapp allows users to explore product packaging examples and reveals what claims and ingredients resonate with the various consumer types. At the same time, the results highlight how Kerry can collaborate in bringing these types of products to life using our taste, flavour and nutrition solutions backed by the wide-ranging skills of our experienced applications teams.
The disruptive nature of today’s snack market means that new private label products have a significant opportunity to gain market share by innovating in these categories in order to attract consumers who, in rising fashion, want snacks that offer new taste experiences and functional benefits.”
Kerry’s proprietary research was conducted on 1,460 US food/beverage private label consumers, then prioritised by product category and retailer attributes. It took a close look at what’s truly driving category growth, then identified emerging opportunities in the snacks area. The pandemic has propelled changes that have enticed many new consumers into the private label space. Kerry explains the two key consumer types that emerged from the findings, and then offers targeted tips to ensure successful market launches. This overall proprietary research was presented in a webinar called The Future of Private Label that can be accessed here.
Commenting on Kerry’s role in private label product development, Carter added: “Kerry is a complete partner in the private label snacks space, providing tailored market and consumer research insights alongside our taste, flavour and nutrition portfolio, as well as extensive applications expertise that facilitates the creation of the great-tasting, on-trend snacks consumers want. Private label snacks represent a huge emerging opportunity, and our informative online research microapp is both a great introduction to the opportunities available and an excellent way to identify how to partner with Kerry.