5 minute read
MINTEL GLOBAL NEW PRODUCTS
from PG_0922
by ensembleiq
Potato and Tortilla Chips
Market Overview
Consumption of potato and tortilla chips is nearly universal, and the category saw an 8% increase in 2020. The next year saw sales correct, and by 2023, consumers are expected to resume their pre-pandemic pace of slow but steady growth, fueled by interest in on-the-go snacking options and chips that can offer flavors that attune to consumers’ sense of the familiar.
Nearly six in 10 American consumers reported eating regular plain potato chips in the past few months.
Half of U.S. consumers are interested in trying potato chips cooked in healthier oils.
Despite the 8% sales growth for potato and tortilla chips noted above, consumer usage occasions for the category’s offerings remained consistent: potato chips primarily at lunch, and tortilla chips mostly with dinner.
Key Issues
Chips have a long-standing reputation as an indulgence with little nutritional benefit. Yet, as consumers emerge from a pandemic with greater interest in their health, the chip category faces a distinct challenge, one that it’s already begun to meet with baked and popped options, but to which consumers would like to add healthier oils and ingredients, and functional attributes.
A return to dining out may negatively affect chips, but not to the same degree as other CPG foods, simply because potato chips are so associated with the lunch occasion as opposed to dinner.
With finances tight, consumers’ definition of “affordable” is altered, and they’ll seek to stretch their food dollar and want to make sure that the products they purchase remain “fresh” for as long as possible before going to waste.
Despite the 8% sales growth for potato and tortilla chips noted above, consumer usage occasions for the category’s offerings remained consistent: potato chips primarily at lunch, and tortilla chips mostly with dinner. FOR MORE INFORMATION, VISIT WWW.MINTEL.COM OR CALL 800-932-0400
What Consumers Want, and Why
Consumers generally believe that natural ingredients make for a healthier chip, a sentiment particularly strong among younger consumers. The use of natural-adjacent claims, such as “free from artificial ingredients,” can convey a sense of a healthier option.
Smaller package sizes for on-the-go eating, as well as single servings, would help consumers meet their goal of limiting snacks.
Much of the category’s focus in recent years has been on flavors that push the boundaries in terms of spiciness, yet consumers strongly indicate a preference for familiar flavors. This doesn’t have to mean standard chip flavors are a thing of the past, however, and could include broadening available options with more regionally specific flavors.
Healthy Holiday Eating on a Budget
n 2022, grocery inflation reached its highest point since 1979. Nearly one-quarter (23.6%) of U.S. households say that they don’t have spare cash. Americans are feeling the pinch of rising food prices, soaring fuel costs and the looming threat of recession. Inevitably, budget-conscious shoppers will need help balancing the cost of holiday gift-giving with the cost of holiday eating and entertaining this holiday season.
Less Impulse Buying
When budgets tighten, impulse buying is one of the first consumer behaviors to change. More than 70% of consumers report being less likely to grab an unplanned treat while grocery shopping. Increasingly, cash-strapped consumers will choose online shopping with delivery to reduce the temptation to buy impulse items, while eliminating the related fuel costs of in-store shopping. In fact, 63% of consumers plan to do some or all meal planning digitally. Retailers can use e-blasts featuring discounts and links to digital coupons, along with social media posts, to entice consumers to add deserving items to their holiday shopping lists. They don’t have to be complex: Consumers often search online for basic holiday recipe favorites, including green bean casserole, mashed potatoes, cookies and appetizers.
Trading Down
“Trading down” means different things to different shoppers. For example, some may swap traditional holiday fresh fruits and vegetables for smaller quantities of produce varieties that are on sale. Others may trade down altogether from fresh produce to less expensive frozen or canned private-brand options. Some may also trade down when it comes to meats and seafood, closely comparing frozen and fresh departments in search of bargain pricing. July purchasing data reflects an inflation rate jump of 28% in the frozen meat category. Therefore, the fresh case may still be the best place to bargain shop. Suggest holiday recipes featuring budget-friendly pork tenderloin and roasts, beef strip loin and sirloin, and case-ready selections in place of more costly cuts like prime rib and filet mignon.
Diluting Share of Wallet
As financial optimism and the purchasing power of the dollar drop, so can customer loyalty. Memberships to warehouse/club stores become more attractive to value shoppers, prompting traditional grocery retailers to lose some share of wallet to discount and big-box retailers. Consumers will also turn to online shopping and digital price checking to get the best deals. Retailers need to stay connected with their shopper base and offer affordable holiday meal solutions, both in-store and online.
Differentiate During the Holidays
Retail dietitians can help differentiate and contribute to customer retention by offering budget-friendly holiday menu ideas, and tips on how to stretch food dollars, reduce food waste and gain the best nutrition out of their spend.
Demonstrate ways to save on holiday menu favorites. Create holiday recipes using food brands featured on discount promotions, in combination with private-brand ingredients that help decrease price per portion. Align in-store displays and cross-merchandising with holiday meal deals to position your stores as affordable, one-stop destinations for healthy holiday shopping.
Help Consumers Reinvent Party Foods
Show customers how to make the most of leftover holiday entertaining menu items by first storing them at proper temperatures, and then using them as creative secondary meals. Save raw veggie tray leftovers to use as soup starters or steamed veggie side dishes. Offer recipes to use today’s fruit tray as tomorrow’s breakfast smoothies. Serving a holiday shrimp tray on ice? Reinvent the remainder as a hearty shrimp-andfrozen-corn chowder. Have leftover beef steak? Get creative by making steak-andpepper fajitas or steak-and-egg omelets.
One of the best ways that consumers can save holiday food dollars is to ensure that healthy foods purchased are eaten, rather than landing in the waste bin.
