Value-added launches have helped to boost the prominence of nuts in the global snack foods market, according to Innova Market Insights.
Nuts are finding increasing favour as a convenient and nutritious snack and technology has allowed development of the value-added category in particular, according to Innova.
As a result, nuts have increased their share of the snacks market to around 36 per cent, up from around 32 per cent five years ago.
Lu Ann Williams, Director of Innovation at Innova Market Insights says the packaged snack nuts market has seen mixed fortunes in recent years, with some difficult times in the market for standard salted peanuts and other commodity-style lines.
At the same time, however, there has been rising interest in value-added products, such as natural, flavoured and premium lines.
“Exotic nuts, such as Brazils, macadamias, pistachios and pecans, are increasingly being used to add value and interest in the market, while nut mixes have moved into whole new areas in terms of ingredients and away from their traditional reliance on seasonal sales,” Williams says.
Interest in health has also been a key driver in the market in recent years, with the growing positioning of nuts as a healthy snack, according to Innova.
Nuts are suitable for year-round consumption, both as an impulse snack and as a planned snack for sharing during in-home family and social occasions.
Ongoing interest in the health attributes of nuts resulted in one-third of global launches in 2013 being positioned on a health platform of some kind, rising to over 60 per cent in the US.
The share of nuts in the snack foods category varies markedly from country to country, according to Innova.
Nuts have the highest market share in Continental European markets, such as Spain, France and Germany, where they are traditionally eaten as a snack.
Lower shares occur where there is a traditional dominance of potato crisps, such as the UK and the US.
In terms of product activity, Western Europe has the highest penetration of nuts, equivalent to 40 per cent of total snacks introductions, while the US has a more modest 32 per cent, which is well behind the global average.
“While innovation opportunities have traditionally seemed more limited in nuts than in some other sectors of the snacks market, it would appear that this may no longer be the case.
"Technological improvements have allowed the development of much more complex and sophisticated flavours and coatings and a range of more user-friendly packaging formats. These include resealable cardboard cans, plastic and aluminium pouches and plastic jars, as well as the more traditional flow-wrapped bags,” says Williams.
