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The Retail Value of the Total UK Snack Foods Market is Forecast to Fall By 3.4% Between 2007 and 2011

Posted on: Wednesday, 13 June 2007, 06:01 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c59498) has announced the addition of "Snack Foods Market Report Plus 2007" to their offering.

The snack foods analysed in this Market Report Plus encompass potato crisps, other savoury snacks and snack nuts. Such snack foods are available at all price points; in a diverse range of outlets; in individual packs, multipacks or family-sized bags; and in a wide choice of flavours.

Many products are being introduced to appeal to more sophisticated adult tastes in an ageing population. Nevertheless, retail sales have struggled to keep their value in an industry lambasted in the healthy eating debate and in which own-brand products are on the rise. In 2006 (year ending May), the total UK snack foods market, as defined by this report, was worth £2.08bn at retail selling prices (rsp), a rise of 0.4% on the same period in 2005.

Given the amount of publicity and debate surrounding a healthy diet and the obesity crisis, manufacturers of savoury snacks have acted to combat lost sales by increasing their development and production of potato crisps and other savoury snacks with lower fat and salt content. Previously, manufacturers had limited success in their introduction of specific low-fat brands. However, their tactics have changed; manufacturers are now reducing the fat and salt content of their major leading brands in what some see as a pre-emptive move before Government intervention forces them to do so.

Certainly, it is clear that many people in the UK eat unhealthy diets. According to the British Heart Foundation (BHF), half of the UK's children are consuming nearly 5 litres of cooking oil each year by eating a packet of crisps each day, while one in five double-up by eating two packs a day. From September 2006, moves were taken to improve school canteen meals and junk food, such as crisps, sweets and fizzy drinks, were banned from school vending machines. However, this may well result in children simply buying more of the same products on their journeys to and from school.

The savoury snacks industry, then, must contend with criticism from the media and health bodies, as well as from competition from other food categories also striving to meet the needs of snackers. In addition, companies face the formidable competition of the PepsiCo-owned Walkers Snack Foods. According to our exclusive consumer research, 61.7% of respondents buy Walkers crisps on a regular basis -- more than double the penetration recorded for its nearest competitor brand, Pringles. In addition, the research showed that Walkers increased its percentage penetration over the preceding year, whereas all the other named brands, with the exceptions of Kettle Chips and Doritos, saw their percentage penetration drop.

Other recent corporate activity includes the sale of United Biscuits and

Kettle Foods to private-equity investment companies, and the sale of Union Snack Ltd to a leading German snack foods company. The trend continues towards consolidation in the retail grocery industry in both the UK and Western Europe, and these consolidations have concentrated sales channels, increasing the bargaining power of the major grocery retailers.

Health issues are forecast to continue to have an adverse effect on the major sectors of the market, namely potato crisps and other savoury snacks, while growth is projected for snack nuts. Overall, the retail value of the total UK snack foods market is forecast to fall by 3.4% between 2007 and 2011.

Companies Mentioned:

Red Mill Snack Foods Ltd

Seabrook Crisps Ltd

Tayto (NI) Ltd

Union Snack Ltd

United Biscuits (UK) Ltd

Walkers Snack Foods Ltd

For more information visit http://www.researchandmarkets.com/reports/c59498

Source: Business Wire

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