More Australians are replacing traditional meals with frequent snacks throughout the day. GlobalData consumer markets analyst Meenakshi Haran shares how snack makers are tapping into trends to meet consumer snack demand. This story was first published in Food & Drink Business April 2020.
With busy lifestyles, the traditional eating habits of Australian consumers have been replaced with frequent and flexible snacking.
The desire for snacking is high as people feel time-pressed to eat full meals at traditional times and in conventional environments. Instead, consumers want options they can easily consume during their commute or in the time between tasks throughout the day.
Snack innovation
Consumers want snacks that not only help them live healthier lives, but do not compromise on taste and other specific lifestyle-based requirements.
Snack manufacturers are realising the significance of focusing on innovation across the border ranging from health and wellbeing to taste, personalisation and clean living driven by their desire to capitalise on the changing landscape of ‘snackification’ in Australia.
In 2019, global snacking giant Mondelez established SnackFutures, an innovation hub based in Australia.
The project combines the company’s global strength and expertise with Australia’s thriving food and snack start-up industry.
Its goal is to develop innovative, unique and forward-thinking snack products to help the company stand out in a highly competitive market and create new growth opportunities through disruptive offerings.
Strong interest in superfoods
As more consumers replace traditional and portioned meals with snacks, our research shows for 87 per cent of Australians, health and nutrition play an important role in influencing their food choices.
The major driver for this trend is the desire to lead an active life and the impact on health is therefore emerging as a major influencer of purchase decisions. The definition of health and wellbeing is evolving with changing lifestyles.
Consumers today, not only seek products that are good for them, but also demand products that are good for the planet.
Snack makers are focusing on launching clean, organic and nutritional snacks to cater to this growing consumer desire for ‘better for you’ snacking options.
For instance, Botanika Blends claims to combine food science with plant power to craft innovative nutritional snacks targeted at health conscious consumers.
Similarly, East Bali Cashews launched an organic line of ‘East Bali’ cashews that claim to be free from preservatives and sourced directly from farmers to appeal to healthy consumers seeking clean snacking options.
Thai-Wa Lupin products launched a new line of health snacks under the brand name ‘Pinarie’. The chips are made with Australian sweet lupins, a legume that is full of proteins and fibres, and is fast gaining acclaim as a superfood.
The plant-based mainstream
With vegetarian, vegan, and flexitarian diets gaining traction in recent years, more manufacturers and food service operators are featuring plant-based nutrition prominently in their portfolios.
Accordingly, snacks makers are rolling out more plant-protein products and alternatives to popular meat-based snacks to appeal to consumers who prioritise sustainable and clean label foods.
Getting personal
Consumers want what works for them and increasingly prefer ‘made for me’ snack options, driving demand for personalised products that meet specific requirements.
Differentiation and personalisation are essential in today’s marketplace.
This growing shift away from mass offerings remains a major factor prompting brands to create tailored offerings that resonate with specific consumer lifestyles.
Canadian company Noble Jerky produces Noble Vegan Jerky, made with marinated and seasoned tempeh. It is targeted at health-conscious vegan consumers who are looking for plant powered snacks that align with their vegan lifestyles.
The UPLIFT brand of ‘gut happy cookies’ are targeted at consumers who seek tailored snacks that can help improve their ‘gut health’ without compromising on taste.
Cross category consumers
Given the competitive nature of the Australian market, brands are increasingly focusing on innovation to stand out and drive consumer interest.
Young consumers are often eager to try new products, driven by their curiosity for different consumption experiences. ‘Sensory Indulgence’ is integral in the snacking landscape, as consumers’ product choices are influenced by sensory stimuli they experience everyday.
Experimental consumers seek new sensory experiences and are influenced by social media when deciding what new products to try. Unique and new consumption experiences also help products stand-out among the numerous new launches in the market.
Consumers are also more open to experimentation – they are willing to spend on products that provide an enhanced and often surprising consumption experience. This trend is largely driven by Gen Z and millennials who are highly influenced by sensory stimuli when choosing a product.
Arnott's Shapes released Meat Pie and Sausage Sizzle flavours this year. These additions to its ‘Aussie Legends’ range are in line with novel and experiential trends. The crackers interact on visual and sensory levels with a familiar shape (Australian mainland and Tasmania) and iconic flavours.
On-the-go convenience
In a bid to differentiate their offerings, manufacturers are focusing on improving convenience for busy consumers who are time poor and see set mealtimes as a chore.
Digitally-savvy younger consumers who have come to enjoy on-demand services through smartphone apps desire the same instant gratification in their food and beverage choices.
Australian start-up Grabox launched vending machines strapped to a car’s console (next to the driver). It’s a first of a kind in-car commerce allowing consumers to snack on the move.
Similarly, BP’s convenience stores have partnered with UberEats to launch Couchfood to help consumers snack on-demand at home, from the comfort of their couch.
These innovative models will drive further growth in the Australian snacking market.
