Frugal foodies, quick serve competition and health quests: Snack firms take heed…

Snack firms must battle with frugal consumers, expanded competition and the challenge to remain innovative, exciting and healthy, a leading sector analyst says.

Sally Lyons Wyatt, executive and general manager for client insight at Sympony IRI Group, spoke exclusively to BakeryandSnacks.com to give a snapshot of the key challenges and opportunities snack manufacturers face in 2013.

Wyatt said there are four clear strategies snack firms must follow: ‘Feed the frugal foodie’, ‘Bring the show on the road’, ‘Keep excitement in the aisles’ and ‘Expand your snack horizons’.

If manufacturers can follow these four takeaways, business can be very vibrant with plenty of growth prospect.

The frugal foodie and exciting aisles

“Consumers are a discerning bunch – it’s going to be key to understand them,” Wyatt said.

“[They] are also on the run… looking for quick and easy ways to stay energized.” This on-the-go sentiment coupled with blurring of occasions where consumers view snacks as ‘mini-meals’ holds tremendous opportunities for snack makers, she said.

She said that in light of an uneasy economy, home-based eating has snowballed and to capture these consumers snack makers must develop innovative and exciting products – keep the excitement in the aisle.

New competition and the continued quest for health and wellness

Wyatt also warned that competition has expanded rapidly – Taco Bell and McDonalds are new competition to the snack world and manufacturers need to be aware of this.

She said that while health and wellness is nothing new, it is a trend set to stay and one companies simply cannot ignore.

“Address that quest for health and wellness that consumers have… Zero in on these key attributes that really have been driving that health and wellness quest. Whether it be gluten-free, soy, protein, freshness – we’ve seen huge increases on those attributes and it’s really getting that right combination to address the consumer needs.”