1 Trends In Consumer Snacking Behavior and Preferences Hailey Bauer University of Minnesota Duluth Intro Snacking is a huge part of many consumers' lives, with many snacking multiple times a day. In fact, almost half of consumer eating occasions are snacks (Sloan, 2017). Snacking has only become more common in recent years, increasing by 10% since 2013 (Mondelez International, 2022). There have been a large number of surveys conducted, asking consumers what their eating and snacking habits and preferences are. These surveys vary as to what they define as snacking but are usually one of the two following definitions: anything eaten outside of the typical three main mealtimes, or anything eaten that is not a large enough portion to be considered a meal. The three main meals are considered to be breakfast, lunch, and dinner. Understanding consumers' snacking behavior and preferences, and how they are changing with time is important for any snack brand to know. Knowing this information can help them tailor their products to fit their consumer’s needs. Understanding the consumer and delivering a product that meets both their needs and wants can allow a firm to increase its profits drastically. This review will first look at how consumer snacking behavior has changed over the years, especially in response to the pandemic, inflation, and the increase in time spent in the home. Secondly, it will look at what consumers value in a snack and which attributes are most important to them. It aims to give snack brands a clearer understanding of their consumers. TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 2 Theme 1: The Shift in Snacking Behavior Increase in Snacking There is valid reason to believe that in the past years we have seen an increase in snacking (Circana, Inc., 2023). Kant and Graubard (2017) followed several adults over 40 years and found that the number of adults reporting eating the three main meals fell from 70% to 60% from the start of the study (1970s) to the end (2017). In the even more recent years, a survey done by Mondelez International (2022) found that since 2013, there has been a 10% increase in snacking. Additionally, since 2013, the number of snacks per capita has seen a significant 6% growth (Mondelez International, 2022). This may be related to an increase in the number of times consumers are snacking per day. One survey gathered that 60% of US consumers reported eating a snack at least once per day (Sollid et al., 2022), while another found that 71% of worldwide consumers reported to snack at least twice per day. The increase in snacking may also be related to the increase in the amount of energy consumers are gaining from snacks, while the energy gained from meals has decreased (Kant & Graubard, 2016). A study done by Sloan (2017) found that 49% of surveyed consumers’ eating occasions were snacks. This increase in snacking is largely driven by members of Gen Z, those born between 1981 and 1996 (Circana, Inc., 2023), along with millennials, those born after 1997 (Mondelez International, 2022; Sollid et al., 2022). Additionally, there was a greater increase in snacking behaviors from women than men, which may be related to greater out-of-home employment (Kant & Graubard, 2016). Creating products targeted towards these growing market groups may improve a brand’s performance and sales. Overall, the studies suggest that consumers are relying on snacks for more of their daily calorie intake and are increasing the frequency of their snacking. TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 3 The Pandemic, Inflation, and the Increase in Home Cooking and Consumption The increase in snacking may be related to the increase in at-home consumption during and post-pandemic. Mintel’s survey (2022) found that 39% of consumers aspired to cook more from scratch. This trend has not declined since the pandemic, as 37% of consumers spent more on food at home in the year leading up to March 2023 than they did the previous year (Zegler, 2023). However, this increase in spending may not be due to an increase in at-home eating, but the increase in the cost of groceries due to inflation. Last year in 2023, a third of consumers listed finances as their main worry (Numerator, 2024). With the inflation, consumers claim that the costs of produce and fresh foods have risen more than snack foods (Mondelez International, 2022). This may cause them to lean towards purchasing snacks over other food options. Studies suggest that consumers are quite loyal to snacks. In a study ¾ of consumers claim they will always find room in their budget for snacks, and 64% saying they can count on snacks in tough times (Mondelez International, 2022). This may explain the increase in snacking during the past years, where tough times have been greater. As inflation continues to rise as well as the high cost of living, consumers are looking for easy meal recommendations, knowledge on adaptable cooking (which teaches consumers how to adapt their meal plans to product availability) (Zegler, 2023), recipe possibilities, pairing suggestions (Mintel, 2022), and snack inspiration (Mondelez International, 2022). In response, brands can meet their consumers’ wants and needs by offering these things on the packaging of their products, websites, advertisements, et cetera. Snacking and Time of Day Consumers are likely to snack across all times of the day and replace meals with snacks across all three standard mealtimes (Mondelez International, 2022). The afternoon has been TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 4 found to be the most common time (Sloan, 2017; Circana, Inc., 2023; Sollid et al., 2022), followed by late evening snacking (Sollid et al., 2022). Kant and Graubard’s (2016) 40-year study found that 9-18% of people eat a snack before breakfast, 36-51% between breakfast and lunch, >57% between lunch and dinner, and >60% after dinner. During this time period, midday snacking had seen a strong increase (Kant & Graubard, 2016). In more recent years, it has continued to see increases, while morning and evening snacking has seen decreases (Circana, Inc., 2023). In addition, Sloan (2017) has found that, pre-breakfast snacking has seen an increase, with 1 out of 5 consumers eating early. If consumers are snacking mainly during these times, the kinds of snacks eaten during these periods likely will see an increase in sales. It may be smart for brands to consider creating the kinds of snacks that consumers might be looking for during these key times of day. Increased Importance of Wellbeing Nine years ago, Forbes’ (2015) study found that ⅓ of consumers consider their snacking behavior to be unhealthy. However, more recently, health has come to the forefront of consumers’ minds with the pandemic and an increasing number of consumers are looking to better their health. Numerator’s (2024) recent survey has found that now 34% of consumers prioritize their physical well-being, which is up 13% from the previous year. Additionally, 40% of consumers intend to consume more healthy food (Mintel, 2022), and this trend is seen across all income levels, generations, and ethnicities (Numerator, 2024). The pandemic could certainly be a huge driver behind this shift, but it could also be the increase in health information being shared with consumers, as 40% claim that they will change their behavior when they learn new health information (Zegler, 2023). TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 5 Recently there has been an increase in consumers' interest in the nutrients in their food. In 2023 we saw a nearly twofold increase in the number of consumers favoring obtaining nutrients through food rather than supplements (Numerator, 2024). Furthermore, 47% of consumers today prioritize their macronutrient intake over calories when choosing meals (Zegler, 2023). One macronutrient that is a major focus right now is protein (Mintel, 2020). ¼ of consumers say they are trying to eat more protein in their diet than they did the year before (Sollid et al., 2022), with both plant-based and natural types trending (Mintel, 2022). Plant-based proteins and snacks have gained much popularity recently as 58% of consumers are making an effort to eat less meat and 54% making an effort to eat more plant-based snacks. Brands can use this attribute of protein to promote their products and increase consumer interest. Overall, brands can grab consumers' attention by increasing the healthiness of their snacks and promoting that idea in their products. Snacks as a Treat Despite the claims by consumers that they want to be healthier, treating oneself remains a key driver of snacking behavior (Kaczorowaski, 2023). While many consumers are becoming more health-conscious, many still perceive snacks as an acceptable ‘treat’ in their overall food consumption (McIntyre and Baid, 2009; Circana, Inc., 2023). In fact, Circana Incorporated’s (2023) study has found that “better for you” snacks have seen a decline in consumers choosing to consume in the past 5+ years, with the main loss being to fruit consumption. On the other hand, since August 2023, there has been an increase in consumers looking for cost-effective treat-yourself options (Numerator, 2024). This suggests that despite consumers wanting to eat healthier, their purchasing habits are not showing it. Stress from recent struggles like the pandemic or inflation may be causing consumers to turn to snacks to relieve the stress. One study found that ¾ of worldwide consumers say that TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 6 “these days it’s more important than ever to have moments of indulgence during the day” and 78% of consumers see snacking as a way to affordably pamper or reward themselves (Mondelez International, 2022). While consumers are looking for health benefits, brands need to realize that the taste and flavor components of snacks are most important to the consumer when it comes to purchasing. Theme 2: What Consumers Want From a Snack: A Ranking of Importance While consumers are making claims that they have changed their preferences and are seeking certain things, studies suggest that they are not following through with this thinking in their buying behavior. Below are listed what studies suggest to be considered the top factors consumers consider when purchasing a snack. Findings suggest that taste and flavor are of the highest importance to consumers, followed by cost, and then nutritional benefits/healthiness. 1. Taste Mintel (2022) found that flavor is the leading driver of snack choice. With a large portion of consumers looking to snacks to treat themselves, many consumers are looking for flavor innovation (Kaczorowaski, 2023; Mintel, 2022). The interest in flavor innovation is mainly driven by younger consumers, like Gen Z and millennials, who are especially open to new ideas; however, preferences vary across age groups, and baby boomers are likely to stick to more traditional, basic flavors(Mintel, 2022). To increase interest, brands could look to introduce more limited edition seasonal flavors, which 23% of consumers are interested in seeing more of. (Kaczorowaski, 2023). Specifically, savory and sweet flavors are seeing overall growth on all income levels (Circana, Inc., 2023; Mintel, 2020), and savory snacks are becoming more common as afternoon snacks (Circana, Inc., 2023). Additionally, many consumers are seeking TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 7 whole foods, with flavor profiles imitating their desired treats (Numerator, 2024). Brands can use these flavor ideas to grab the interest of younger consumers, who represent a large portion of the snacking market. 2. Cost Price is another key attribute considered by consumers when purchasing snacks (Forbes et al., 2015). However, Mondelez International’s (2022) survey has found that familiarity is important as 65% of consumers would agree they prefer brand-name snacks to store brands. Studies do not show to what degree this preference for brand-name products influences purchasing behavior. Both health and quality assurances (Mintel, 2022) as well as differentiation through innovation in flavor in functionality (Mintel, 2020) can sway consumers to purchase higher-priced options, which brands can use as a strategy. 3. Health Benefits As the economy recovers from the pandemic and inflation, consumers will be looking over the next two to five years to more value-added attributes than just taste and price (Zegler, 2023). Many adults wish to be more tempted by healthier options (McIntyre and Baid, 2009) and are looking for more nutrient-dense foods (Kaczorowaski, 2023). In a survey, 69% of Canadian adults said they would compromise slightly on flavor if the snacks were noticeably healthier (Kaczorowaski, 2023). Focusing on health benefits can lead to positive results in consumer interest and sales for brands. Consumers seek many different kinds of benefits from their food. In 2015, sugar and total fat were found to be the most important nutritional factors that consumers considered (Forbes et al., 2015). 60% of consumers wanted snacks that deliver an energy boost, 57% seek vitamins TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 8 and minerals in snacks, and 52% want snacks that have health benefits beyond their basic nutrition (Sloan, 2017). More recently, the most common health benefits consumers seek from their foods include energy, along with weight loss/management, heart health, and digestive health (Sollid et al., 2022). There has been an increase in consumers looking for brain health benefits from their food as well. 42% of consumers are interested in foods and drinks that will help them stay focused (Zegler, 2023). Brands can focus on adding or increasing these benefits in their snacks and advertising the benefits to consumers to draw their interest. When it comes to reading labels, in 2015, Forbes et al. found that around half of consumers actually read them, while in 2022, Mondelez International found that 68% read the label, showing that consumers may be more interested now in labels than they were in the past. Another study found that ⅘ shoppers across all generations are concerned about the nutritional value of their food (Sloan, 2017), with females being more concerned than males (Forbes et al., 2015). Snacks targeted more towards women may want to focus on improving the nutritional benefits of their snacks as their target market may be more interested in that. Consumers are seeking comfort, pleasure, and satisfaction in healthy snacks (Mintel, 2020). In McIntyre and Baid’s (2009) study, “natural” and “healthy” snack claims were positively received, as long as the key hedonic “treat” experience was still delivered. This shows that while all of these nutritional benefits are important to consumers, they will not be interested in the snack if it lacks the taste aspect, which brands may want to note. TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 9 Theme 3: Yogurt Product Sales Analysis 1. Executive Summary The data analysis I completed looked into the yogurt category for Dannon in the Milwaukee market to identify trends and opportunities to grow sales volume and revenue. I completed a comprehensive analysis of past data to come up with insights and recommendations for action. The data I had been given to analyze came from IRI, a market research company, and included sales data and panel data. The sales data included 286 weeks of product sales, ranging from 01-10-2016 through 06-27-2021. The panel data included 4 years of annual customer data, ranging from 2017-2020. I analyzed 6 locations with a focus on the Milwaukee market, 101 total products, and 8 Dannon products. Overall there were a few key findings that stood out to me. The first was that overall, yogurt products in all markets are declining in total dollar sales and the prices they are being sold at are declining as well; however, there are a few exceptions to this which include the yogurt products that are associated with health benefits. This includes Greek yogurt and probiotic drinks, which includes Dannon’s Activia Yogurt Drinks and Oikos Triple Zero Greek Yogurt. These products have seen large growth in the 5.5 year period I analyzed. Additionally, the “less-healthy” alternatives to these products, like Dannon Yogurt Drinks, and Original Oikos Greek Yogurt, have seen declines in total dollar sales over the past years. This data analysis, along with the literature review findings, led me to my recommendation. I recommended that Dannon should focus on making improvements to their marketing strategies. They should market key products, like Oikos Triple Zero Yogurt and Activia Yogurt Drinks, towards the growingly health-conscious market. For products that are TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 10 losing sales to these health products, like the original Oikos yogurt and Dannon Yogurt Drinks, they should change their marketing strategies and market them towards consumers who don’t value health attributes over others like flavor or cost. 2. Market Context Looking at the market makeup, Dannon products make up 33%, followed by Yoplait, Chobani, private labels, and other products. Of the 6 locations, Milwaukee’s market makes up the largest part of the yogurt market with 27% of total dollar sales . All locations are seeing a decline in dollar sales and Dannon’s products tend to be declining faster than average for yogurt products. However, Milwaukee’s Dannon Products’ decline rate is comparable to all yogurt products (Figure A). Figure A While Dannon overall as a brand is seeing a decline in total dollar sales with time, brands like Chobani or Private Label brands are seeing an increase in sales. Looking into individual product sales to see what may be the cause of this, it is seen that nearly all products are declining yearly in sales on average. The exceptions to this are Dannon Oikos Triple Zero Yogurt, which TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 11 has and average yearly growth rate of over 10% and Dannon Activia Yogurt Drinks, which has an average yearly growth rate of over an impressive 170%. 3. Analysis I looked further into these products that have been identified with strong growth for Dannon, and compared their sales against similar products. First I compared, the Oikos Triple Zero Yogurt with the Original Oikos Greek Yogurt. These were compared as they are both very similar products, however, the Oikos Triple Zero yogurt is promoted as having zero grams of added sugar, zero artificial sweeteners, zero grams of added fat, and 15 grams of protein per serving. Oikos Original does not have these claims. In the comparison, it was found that Original Oikos has seen a steady decline in sales over time. As sales fall for the Original Oikos, sales climb for Oikos Triple Zero, as seen in Figure B. Original Oikos went from being Dannon’s #2 product in 2016 to their #5 in 2021, in terms of dollar sales. Oikos Triple Zero went from Dannon’s #4 product in 2016 to their #2 currently. It has been the more popular product of the two since 2019. Figure B TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 12 I next compared Dannon Activia Yogurt Drinks with Dannon Original Yogurt Drinks. These were compared as they are also very similar, however, Activia has claims to promoting gut health with billions of live probiotics and essential nutrients, while the Original Yogurt Drinks do not. Original Yogurt Drinks have seen a steady decline in sales with time, as seen in Figure C. Activia has been rapidly increasing and does so dramatically every January. During the pandemic, we see Dannon Drinks’ sales fall while Activia Drinks’ rises. In 2021, Activia sales are over 5 times greater than the Original drinks. Figure C 4. Recommendation My research through both the literature reviews and the data analysis came together to bring me to my recommendation. It is clear that consumers are showing a preference for healthier products and this market is only growing. Dannon should work to maximize off this and focus on their marketing strategies. Doing so will increase their customer base, increasing total sales. They can boost their growing products and save their struggling ones. Looking at the products that boast health claims–Oikos Triple Zero Greek Yogurt and Activia Yogurt Drinks–I would recommend similar strategies. Dannon should work to improve TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 13 the packaging and advertising of these products to highlight the health benefits even more. They should work to target health-conscious consumers who will be attracted to the benefits found in these products. While the health benefits must be a high priority, the brand cannot forget about flavor—the attribute that most consumers will not compromise on—and work to ensure that these products do not fall short of consumers’ expectations. Looking at the alternatives–the Original Oikos Greek Yogurt and the Original Yogurt Drinks—I would recommend similar strategies for the two as well. Consumers who are choosing to purchase these products are going to be driven by other attributes, like taste or cost. These features should be more heavily emphasized and targeted toward customers who value cost or taste more than health benefits. The packaging and promotion of these products can be more trendy or aesthetically pleasing, also appealing to consumers in that way. Conclusion Overall, the literature has shown that consumers depend on snacks now more than ever. While there has been a dramatic increase in consumer interest in healthy eating, when it comes to snacks, flavor and satisfaction is still the most important aspect to them. Snack brands, like Dannon, can consider taking into account flavor, cost, and health benefits when producing snacks to increase consumer preference for their products as well as increase brand value. A brand must also remember that not all consumers are the same and different products can be created to meet different consumers’ needs. It is important to remember that surveyed consumers’ definitions of snacking may have varied in the surveys conducted and responses may have been influenced by respondents' opinions, backgrounds, biases, etc. Rather than looking for consumer opinions through surveys, TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 14 more experimental studies could be conducted to help better understand consumers’ true motivations and preferences. TRENDS IN CONSUMER SNACKING BEHAVIOR AND PREFERENCES, WITH A FOCUS ON NUTS 15 Sources 2023 Food & Drink Trends: North America—Mintel. (2023). Eating Patterns in America 2023. (n.d.). Forbes, S. 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