What Is The Snack Food Industry Expo About?
The United States is the largest world market for snack foods, consuming roughly a third of the total supply. The American snack food industry consists of more than 1,200 companies operating 1,465 plants and using over $11 billion worth of ingredients each year. From 2001-2006, snacking increased by 1.5% and skyrocketed another 4% just in the last year. “Consumers are serious about these ‘meals’ being healthy. Simultaneously, manufacturers are serious about meeting consumer, watchdog and governmental demands to make snacks more nutritious, particularly those aimed at kids,” says Don Montuori from Packaged Facts market research company.
It’s surprising to some that snack food industries have skyrocketed during a time of recession, especially when snack food prices have increased anywhere from 4-11% over the last year, due to increased energy and commodity costs. However, consumers are flocking to Wal-Mart for their fair-priced trail mixes and coated snacks. For the most part, weight management and nutrition headlines are driving consumer interest and demand for healthy snack foods, with 62% of consumers saying they eat foods to prevent or manage health conditions and 42% are seeking snacks with health benefits. Yet industry leaders add that the more indulgent treats still comprise two-thirds of all sales.
Some companies in the snack food industry are taking extra steps to evolve their businesses. For instance, PepsiCo has taken steps this year to reduce their carbon footprint. “It doesn’t matter if you believe in global warming or not,” said Robert D. Schasel, director of energy conservation. “You still want to save money.” He added that PepsiCo has drastically reduced energy consumption, water usage and waste discharge. They now use a landfill that converts methane gas for use in boilers for seven of their locations, a solar powered plant in California which produces 75% of the energy needed to produce Sun Chips and using the water content of potatoes to power their boilers. At the end of the day, the food snacks company is saving money and also boosting their rapport with eco-conscious consumers.
Product value was on everyone’s minds at the snack food industry exposition this year. Quality, convenience, innovation, differentiation, entertainment and price are all competitive features that contribute to a product’s success. By contrast, failed products often fail to meet with consumer needs, lack a clear difference from the competition or suffer poor merchandising. In a nutshell, success in foods market promoting is largely the melding of art and science.