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Non-Chocolate, Gum & Mints
Packaged Sweet Snacks Offer Safety, Indulgence
Americans catered to their sweet tooths during the pandemic, and that — along with their learned preference for packaged items rather than fresh — will stand sweet snacks and granola bars in good stead in 2022.
Cakes, pastries and sweet pies account for a sizeable portion of sales in the convenience store channel, expected to reach $3.3 billion by 2025, according to Khalid Peerbaccus, senior innovations researcher for GlobalData. Cookies are forecast to reach close to $1 billion by 2025.
According to IRI, for the 52-week period ending Dec. 26, 2021, in the convenience store channel, the overall snack bars, granola bars and clusters category totaled $760 million, up 14.7%, with granola bar sales specifically rolling in at $65.1 million, a dip of 2.6%.
Meanwhile, packaged sweet snacks grew by more than 12% in dollar sales in 2021, according to InfoMetrics data from Management Science Associates.
The pandemic not only moved consumers to look for comfort snacks but had them reaching for packaged baked goods for sanitary reasons — both habits that consumers have retained in 2022.
Retailers reported that sweet snacks was a growing category through 2021, with more consumers shifting from fresh options to packaged options.
Joseph Bortner, center store category manager for York, Pa.-based Rutter’s, which operates 79 stores in Pennsylvania, Maryland and West Virginia, said he sees the two categories of fresh and packaged baked sweet snacks blurring as time goes on.
In the wake of COVID-19, Bortner suggested, a fortunate scenario for retailers and consumers has developed as a result of that blurring.
“That gap between fresh and packaged has narrowed significantly as suppliers continue to develop and increase the quality of products offered,” he said. “Consumers perceive the (packaged) products as being free from any contamination. Utilizing these products in high-trafficked areas helps drive impulse and baskets.”
Implementing cross-promotions and cross-merchandising for packaged baked items with beverage and foodservice — merchandising by coffee, queue lines and checkouts — will also stimulate sales, Bortner added.
GUILT-FREE INDULGENCE
Health remains a factor in customers’ approach to sweet snacks.
According to GlobalData’s 2021 consumer survey, 43% of consumers said they are actively trying to reduce their consumption of sugar, and 35% said they are trying to reduce their intake of calories.
“Furthermore, 40% admit they are reducing their consumption of fats,” Peerbaccus noted. “These figures indicate consumers would be receptive to snacks that provide a guilt-free opportunity to indulge and are low in sugar, calories, fat or all three as consumers demonstrate a proactive desire to curb unhealthy eating habits.”
A quarter of respondents said they were interested in reducing their intake of artificial sweeteners, and 29% are doing the same with artificial flavors/colors, highlighting a desire for fewer processed foods in favor of those that contain a higher number of natural ingredients.
Snack Bar Sales See Strong Growth
Snack bar sales in the convenience store channel rang in $760 million in dollar sales, up 14.7% for the 52 weeks ending Dec. 26, 2021, per IRI. Nutritional bars saw the biggest increase for the period, up 17.3%, while granola bars dipped 2.6%.
Current 1-Year % Change Current 1-Year % Change Current 1-Year Change
Snack bars/ granola bars/clusters $760 M 14.7% 385 M 6.8% $1.97 $0.14 Nutritional/intrinsic health value bars $498 M 17.3% 196 M 13.4% $2.54 $0.09 Breakfast/cereal/ snack bars/clusters $196 M 14.6% 121 M 7.5% $1.63 $0.10 Granola bars $65.1 M -2.6% 68.0 M -9.7% $0.96 $0.07
Nuts and Seeds Demand, Pricing Increase
Nuts and seeds both typify and refl ect Americans’ growing obsession with health, which positions them for success throughout 2022 and beyond.
While prices have risen due in part to the pandemic, and will likely continue to rise, consumers are expected to adjust to the increases, given their demand for the category.
Snack nut sales totaled almost $591 million, a 9.6% increase for the 52 weeks ending Dec. 26, 2021, according to convenience channel data from IRI.
Leading brands were Planters, just shy of $155 million, up 11.9%; Wonderful, nearly $118 million, up 33.3%; Blue Diamond, over $49.5 million in sales, up 15.3%; and Nut Harvest, with sales of $42.3 million, down 8.8%.
Sunfl ower/pumpkin seed sales topped $267 million and rose by 8.2% for the period. Leading brands included David at $92.3 million, a gain of 13.2%, and Bigs, with sales of $70.5 million, up 25.6%. Toasted corn nut snacks saw sales of just under $52 million, a gain of 12.7%.
Nissan Koroghli, a 7-Eleven franchisee with one store in Las Vegas, said he fi nds success with the chain’s proprietary nut line, as well as traditional favorite Planter’s.
“More people are buying them because people are trying to eat healthy,” Koroghli pointed out.
Peanuts, pistachios and cashews all move briskly from the four-foot wall section devoted to nuts. Sunfl ower seeds are also popular, led by Spitz’s Dill Pickle seeds.
Nuts and Seeds Trend Upward
Nuts & seeds dollar sales surged 9.4% to total $910 million in the 52 weeks ending Dec. 26, 2021, though unit sales saw a slight dip of 2.4%. Toasted corn nut snacks saw the biggest year-over-year gains in the category, up 12.7% for the period.
Description
Snack nuts/seeds/ corn nuts
Dollar Sales Unit Sales Price Per Unit
Current 1-Year % Change Current 1-Year % Change Current 1-Year Change $910 M 9.4% 495 M -2.4% $1.84 $0.20
Snack nuts
$591 M 9.6% 315 M -1.7% $1.87 $0.19 Sunfl ower/ pumpkin seeds $267 M 8.2% 149 M -5.7% $1.80 $0.23 Toasted corn nut snacks $51.8 M 12.7% 30.4 M 8.4% $1.71 $0.07
Source: IRI Market Advantage - TSV Total U.S. Convenience data for the 52 weeks ending Dec. 26, 2021
PRICE POINTS RISE
Koroghli said both lines of products are growing more expensive in Las Vegas as they are around the country. Price points have risen since the pandemic to $1.99 and even $2.29.
“There is nothing we can do; that’s the way of life right now,” he said. “Eating healthy is so expensive.”
Caitlin Campbell, media relations specialist for Love’s Travel Stops & Country Stores, said that despite the higher prices, Americans’ desire to eat healthier snacks is here to stay.
“Love’s thinks customers will continue to demand fresh and healthier food options in 2022,” Campbell said. “We’ll also continue to listen to customers’ feedback and add products they want.”
Martin Kruse of the Copenhagen Institute for Futures Studies suggested that the impact from climate change may be slowly changing consumer habits and causing prices of items such as nuts to go even higher in 2022 and beyond.
“Increasingly, nuts production may come into focus, and with higher tariffs on water, producer countries may change,” Kruse said. “As an example, almond production in California is a high water-intense production. If drought becomes an issue, consumers may turn away from too-intensive production. The overall increase in the use of nuts may, however, swallow up any decline, so the net result of the two trends evens out.”
