Snacks For Children: Targeting A New Generation of Parents: April 2020

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New parents want children's snacks that are nutritious, with simple and minimally processed ingredients. They also prefer snacks that are portable and convenient due to time scarcity.

New parents want children's snacks that are nutritious, with simple and minimally processed ingredients. They also prefer snacks that are portable and convenient due to time scarcity.

Time scarcity has increased parents' reliance on packaged foods for children. However, parents still struggle to provide balanced nutrition and prefer minimally processed options.

SNACKS FOR CHILDREN: TARGETING A NEW

GENERATION OF PARENTS

April 2020
CORONAVIRUS (COVID-19)

The analysis in this report was written before Coronavirus (COVID-19) started
to spread and export internationally. Accordant industry data were also built
and published prior to this. Euromonitor International has therefore not
included analysis relating to COVID-19 in this report, and its potential influence
is not factored into forecast data.

Given its early stage of development, the scale and impact of COVID-19, at
national, regional and global levels, remains uncertain, but is evolving fast. For
the latest insight on COVID-19 and how it can be expected to impact demand
across fmcg industries, readers can access strategic analysis and regular
updates on www.euromonitor.com and via the Passport system, where new
content is being added on a systematic basis as the situation develops.

© Euromonitor International INDUSTRY: SECTOR PASSPORT 2


INTRODUCTION
OVERVIEW: SNACKS, CHILDREN AND
PARENTS
RAISING NUTRITIONAL PROFILE
MAKING CHILDREN'S SNACKS ACCESSIBLE
FUTURE OUTLOOK
INTRODUCTION

Scope

▪ All values expressed in this report are in US dollar terms, using a fixed 2019 Disclaimer
exchange rate. Much of the information in this
briefing is of a statistical nature and,
▪ All historical value data are expressed in current terms; inflationary effects are while every attempt has been made
to ensure accuracy and reliability,
included. All forecast data are expressed in constant terms; inflationary effects Euromonitor International cannot be
are excluded. held responsible for omissions or
errors.
Figures in tables and analyses are
Staple foods calculated from unrounded data and
USD864.4 billion may not sum. Analyses found in the
briefings may not totally reflect the
companies’ opinions, reader
Cooking ingredients discretion is advised.
and meals
USD390.3 billion Confectionery This briefing explores how the
Packaged food USD191.4 billion busier lifestyles of new
generation parents have
Dairy increased their reliance on
USD572.3 billion Savoury snacks packaged snacks for children.
Children offer a big opportunity
USD165.1 billion to brand owners; however,
parents have high nutritional
Snacks expectations of children’s
Ice cream and frozen
USD540.4 billion snacks. The categories of
desserts interest and approaches to
USD83.8 billion raising nutritional profiles vary
significantly between developed
and developing regions. Product
Sweet biscuits, snack accessibility and appeal to
bars and fruit snacks children are key purchase
influencers too.
USD100.1 billion

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 4
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INTRODUCTION

Key findings

Eating anytime, The emergence of eating anytime, anywhere has brought convenient food options
anywhere leads to the to the top of consumers’ mind. Snacks have benefited, due to their ubiquitous
rise of “snackification” availability; however, the nutritional expectations of snacks have increased too.
Brand owners are repositioning snacks for on-the-go consumption, giving rise to
healthier alternatives to traditional sweet and savoury products.
Children represent a big Besides the sheer size of the child population, the growing trend of anytime,
opportunity for snack anywhere eating amongst children makes this segment a big opportunity for snack
manufacturers manufacturers. With less time spent at home and more meals eaten outside the
home, parents will be on the lookout for snacks for on-the-go consumption in the
longer term.
Nutrition is a key Children's health is a key parental concern for brand owners to address. Brand
concern for new owners are focusing on raising the nutritional profile of snacks by using naturally
generation parents functional food to appeal to parents. Parents play an influential role in making
purchases, irrespective of children’s age, although the correlation between
parents’ influence and snack purchases weakens with the increase in the child’s
age.
Packaging has a role in Packaging’s influential role in communicating the ingredients through clean labels
enhancing product can be leveraged further. In addition, strategies such as single serve, portable and
accessibility resealable packs allow food manufacturers to achieve portion control, reduce food
wastage and appeal to parents.
Brand engagement – Brand owners are increasingly seeking to engage responsibly with children
an alternative to through product co-creation, pop-up cafés and digital activities. There is much to
traditional advertising be explored in the area of digital engagement, as brands owners move towards
more responsible advertising.

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 5
PARENTS
INTRODUCTION
OVERVIEW: SNACKS, CHILDREN AND
PARENTS
RAISING NUTRITIONAL PROFILE
MAKING CHILDREN'S SNACKS ACCESSIBLE
FUTURE OUTLOOK
OVERVIEW: SNACKS, CHILDREN AND PARENTS

Packaged snacks outperform foods growth globally

Packaged Food vs Snacks Performance by ▪ Consumers’ time-pressed lifestyles,


Region 2019-2024 leading to the trend of eating anytime,
800 4.0% anywhere, benefited sales of packaged
snacks over 2014-2019. Packaged
700 3.5%
snacks’ ubiquitous availability, zero
preparation time and convenient
600 3.0%
consumption makes them a popular
USD billion, rsp

% CAGR 2019-2024
500 2.5% choice amongst consumers.
▪ While consumers in developing and
400 2.0% emerging countries are increasingly
replacing home-made snacks with
300 1.5%
packaged snacks, consumers in
200 1.0%
developed markets are on the lookout for
healthier snacks or snacks that allow
100 0.5% permissible indulgence.
▪ Through packaged snacks launches over
0 0.0%
APAC WE NA LA MEA EE 6A
2014-2019, manufacturers targeted health
and also introduced snack alternatives to
Dairy Products and Alternatives Cooking Ingredients and Meals provide more choice to consumers. With
Snacks Staple Foods
greater choice, consumers are becoming
Snacks % CAGR 2019-24 Packaged Food % CAGR 2019-24
more comfortable using snacks to replace
Note: APAC- Asia Pacific, WE- Western Europe, NA- North America, LA- Latin America, meals, which is creating further room for
MEA- Middle East and Africa, EE- Eastern Europe, 6A- Australasia growth.

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 7
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OVERVIEW: SNACKS, CHILDREN AND PARENTS

Less and less cooking with each passing generation benefits snacks

▪ Survey data show a clear pattern – with each I would rather spend my time doing things
new generation, more people would rather other than cooking
spend time doing things other than cooking.
▪ Millennials saw their parents cook less than
their grandparents did. As such, they are less Generation Z

likely to develop cooking skills or enjoy the


process. When they have children, they are
likely to spend even less time cooking, and
are less likely to pass on cooking skills. Millennials

▪ Millennial parents are less likely to cook at


home, and their Generation Z children are
those most likely to consume snacks
between meals, resulting in a greater Generation X
dependence on food made outside the home,
benefiting sales of snacks.
▪ With their considerable reliance on food
produced outside the home, younger Baby
Boomers
consumers are more inclined to eat anywhere
and at any time, depending on what is
convenient for them, which has created 0% 5% 10% 15% 20% 25% 30%

demand for packaged snacks that can be


% of respondents
consumed on the go.
Source: Euromonitor International’s Global Lifestyles Survey, 2017 n =25,362

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 8
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OVERVIEW: SNACKS, CHILDREN AND PARENTS

Fluid eating habits create newer consumption occasions for snacks

▪ Snacking in between meals is more common amongst younger I eat a lot of snacks in
generations, with this trend’s prominence increasing with each between meals 2019*
passing generation. Millennials, many of whom are now parents,
and Generation Z are the heaviest snackers. Generation Z, which Baby Boomers

accounts for a large proportion of the child population, are likely to


Generation X
be more familiar with eating snacks anywhere, anytime than
previous generations, like Baby Boomers. Besides fluid eating
Millennials
habits, consumers’ time-pressed lifestyles have turned traditional
sit down meal occasions into prominent snacking occasions, Generation Z
impacting certain occasions more heavily than others. Mid-morning
snacks is the most impacted, as consumers prefer snacks that can 0% 10% 20% 30% 40%
be consumed on the go when in offices or schools. Respondents

At what time do you eat meals and snacks?**


40%
Respondents

30%

20%

10%

0%

Meal time Snack time


Source: *Euromonitor International Health & Nutrition Survey, 2019 n =20,166
**Euromonitor International Global Lifestyles Survey, 2020 n =40,608

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 9
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OVERVIEW: SNACKS, CHILDREN AND PARENTS

Children are a big opportunity for snack manufacturers

Global Population by Age Band 2019/2024


800
700
600
500
Billion

400
300
200
100
0
0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64
Years
2019 2024

▪ Population in the younger age bands spanning 0 to 14 years represent a substantial segment globally.
Children in this age group are heavier snackers than their parents, and their large population size makes
them a big opportunity for snack manufacturers.
▪ There is a clear negative correlation, whereby the role of a parent in the purchasing decision of a snack for
a child decreases as the child grows older. The child’s possible role as an influencer in this purchasing
decision increases as he/she gets older, and it changes to that of a potential shopper him/herself when
moving into his/her teen years. For snacks brand owners, this means that parents’ concerns and priorities
when it comes to choosing a product for their child are more crucial when addressing products for babies
and young children.
▪ While the influence of parents typically weakens over time, this is increasingly offset by greater
empowerment enabled by social media platforms and parents’ online networks, such as Mumsnet in the
UK. Parents’ endorsement of a children’s snacking product therefore remains important, and will
increasingly matter.

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 10
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OVERVIEW: SNACKS, CHILDREN AND PARENTS

Alternatives to standard sweet and savoury snacks offer a healthier image

▪ Snacking has been redefined as consumers seek more snack options to eat outside their homes, more
frequently and on the go. According to Euromonitor International’s survey data, eating snacks outside the
home has become more frequent. In 2016, 36% of respondents bought or consumed snacks outside the
home, compared to 27% in 2015. With the increased frequency of snacking and the blurring of lines
between snacks and meals, consumers are also seeking snacks that provide more balanced nutrition than
the standard salty snacks, confectionery and biscuits. This has benefited categories such as nuts/seeds
and trail mixes, as well as popcorn and yoghurt, which are being redesigned or repositioned as snacks. For
instance, yoghurt, which was previously sold in bigger pack sizes of 500ml and in pots for at-home
consumption, is now increasingly available in single serve, spouted pouches to be eaten on the move. Such
snack alternatives are the new benchmarks for sweet and savoury snacks, and are driving innovation in
products with a stronger health profile.

Top 10 Fastest Growing Snack Categories 2019-2024


140 6%
120

CAGR 2019-2024
5%
USD billion, rsp

100
4%
80
3%
60
2%
40
20 1%
0 0%
Other Savoury Nuts, Seeds Fruit Snacks Snack Bars Ice Cream Salty Snacks Popcorn Chocolate Sweet Biscuits
Snacks and Trail Confectionery
Mixes

Market size 2019 Absolute growth 2019-2024 % CAGR 2019-2024

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 11
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OVERVIEW: SNACKS, CHILDREN AND PARENTS

Preferences in snacks differ significantly across countries

Top 10 Countries in Sweet and Savoury Snacks: Value ▪ Consumers’ snack choices and
Breakdown by Category 2019 preferences differ across the
world’s top 10 markets for
US
snacks by value. In more
China established and developed
snack markets, such as the US,
Japan Japan and the UK, the variety of
UK
on-the-go packaged snacks
tends to be widest. Snacking
Germany options such as snack bars,
Brazil
popcorn, fruit snacks, nuts,
seeds and trail mixes
Russia increasingly appeal to
consumers.
India
▪ In developing countries, such as
France Brazil and India, home-made
Italy food and street food are still a
major part of people’s diets.
0% 20% 40% 60% 80% 100%
Consumers are, however,
Value Sales
increasingly shifting towards
Confectionery Ice Cream and Frozen Desserts Nuts, Seeds and Trail Mixes
Salty Snacks Savoury Biscuits Popcorn packaged food, and snacks
Pretzels Other Savoury Snacks Fruit Snacks have significant prospects for
Snack Bars Sweet Biscuits growth over the period to 2024.

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 12
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OVERVIEW: SNACKS, CHILDREN AND PARENTS

Parents willing to explore new “healthier” food options for their children

Attitudes Toward Child's Eating Habits, World ▪ Irrespective of the region,


parents globally are
concerned about their
I want to improve my child's eating habits children’s eating habits,
which is evident in
Euromonitor International’s
I am happy with my child's current eating and survey results. Parents want
drinking habits
to inculcate healthier eating
habits and add healthy food
I plan all my child's meals in advance to their children’s diet.
▪ Rapid shifts in the attitudes
of parents towards health is
My child eats healthier food during the week than
on weekends evident in the food products
they choose for their
children. This will become
My child eats a lot of snacks in between meals more visible in the snack
choices parents make as
“snackification” becomes
I do not pay attention to my child's eating and
drinking habits
more prominent – something
manufacturers should
0% 10% 20% 30% 40% 50% 60% 70% consider when innovating.
Strongly agree or Agree
Source: Euromonitor International’s Health and Nutrition Survey, 2019 n =8,504

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OVERVIEW: SNACKS, CHILDREN AND PARENTS

Key attributes that parents prioritise when purchasing packaged food

Parents’ Preferred Food Attributes, World Parents on the lookout for natural food
▪ Parents with young children prioritise natural,
Is all natural low-sugar/salt/fat, high-protein and other
No artificial nutrients over other factors. As well as providing
sweeteners healthy food, parents are keen on addressing
No trans fat or certain generic issues. Weight, height, appetite
hydrogenated oils and many other growth factors are supplemented
Limited sugar with regular nutrient intake. Hence, clean labels
or no added sugar
and nutritional information on packaging are
No GMO ingredients important aspects besides value for money when
choosing the right product for children.
Contains
added vitamins or fiber Food that appeals to the palate
▪ Parents prefer purchasing food that tastes good
Good for heart health
and appeals to children. Healthy foods are
Has limited or no usually low in sugar and monosodium glutamate,
artificial ingredients
which can make them taste different from the
Reduced or low calorie standard foods that children are accustomed to
eating. A less appealing taste can act as a
Has limited or barrier to eating healthily amongst children.
no added fat
Around 90% of the parents surveyed indicated
0% 20% 40% 60%
that their children are picky eaters and therefore
Respondents
they have no choice but to pay attention to taste.
Source: Euromonitor International’s Lifestyle Survey, 2017 n=8,504

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 14
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INTRODUCTION
OVERVIEW: SNACKS, CHILDREN AND
PARENTS
RAISING NUTRITIONAL PROFILE
MAKING CHILDREN'S SNACKS ACCESSIBLE
FUTURE OUTLOOK
RAISING NUTRITIONAL PROFILE

Gaps in nutrient intake in snacks to be addressed

Nutrient Purchasing in Snacks by Region ▪ Within snacks, nutrient intake is orientated heavily
2018 towards the more mature regions. Nutrient volume
Grammes per capita per day

120
100
sales per capita per day are highest across North
80 America, Australasia and Western Europe, with the
60 Middle East and Africa and Asia Pacific at the other
40 end of the spectrum. Within snacks consumption,
20
nutrition is arguably more important for brand
0
owners to focus on when aiming for children and
marketing to their parents.
▪ There is ample room for further innovation in
snacks recipes in developing markets. While
Per Capita Nutrient Purchase in Snacks protein is sometimes consumed to excess in
by Type and Region 2019 mature regions, volume sales can be expanded in
Latin America, the Middle East and Africa and
Carbohydrate
parts of Asia Pacific. Fibre also has significant
Fat
prospects in the latter region.
Protein
Fibre ▪ Among North American and Western European
Salt consumers, more balance is being sought in salt,
Sugar sugar and fat amounts in snacks. Recipes which
Saturated Fat substitute these nutrients with other, more
0% 20% 40% 60% 80% 100% functional ingredients will increasingly appeal. A
% per capita shorter list of ingredients that are also perceived as
North America Australasia Western Europe natural should go a long way, paving the way for
Latin America Eastern Europe Middle East and Africa
Asia Pacific
plant-based ingredients to be increasingly used.

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 16
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RAISING NUTRITIONAL PROFILE

Two approaches to raise the nutritional profile of children snacks

Naturally functional Fortification

• Consumers’ shifting attitudes towards • Artificial fortification is a promising


health are reflected in the preference for approach in emerging markets, where
natural ingredients and for minimally the focus is on addressing the macro
processed food and snacks; however, and micro nutrition gap or deficiencies.
the expectations of nutrition from food That said, artificial fortification allows
have increased. In developed markets, brand owners to keep prices in check,
leading brand owners are expected to which is still a key factor in making
move away from artificial fortification purchase decisions in many developing
towards more natural ingredients with and emerging markets.
functional benefits.
• Artificial fortification within children’s
• The use of naturally functional food is prominent in certain categories,
ingredients is more prominent in snack such as baby food and yoghurt;
varieties in developed markets. however, it offers opportunities in other
Pro/prebiotics, ancient ingredients and snacking categories, as children in
superfood vegetables are popular developing and emerging markets start
ingredient choices for snacks. to snack outside the home.

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 17
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RAISING NUTRITIONAL PROFILE

Innovations target natural and functional ingredients

India: GoMo Dal Crunchies UK: Kefir Slurpy and Squeezy China: Good Gout Kidz

▪ Launched by Mars Inc in 2019, ▪ Biotiful Dairy launched ▪ Health and Happiness Group
GoMo Dal Crunchies are made fermented kefir for children in invested in expansion in China
from pulses, which are a key 2019. Kefir is considered very in 2019, and introduced its baby
part of the daily diet of Indian nutritious, being high in protein, food brand Good Gout locally. In
consumers. Mars’ major focus is vitamins and calcium, and has early 2020, the company
to address nutritional gaps 40 types of beneficial gut- planned to launch new products
among Indian children by friendly bacteria. The children’s in its local range, including
providing iron, key vitamins and Kefir Quark Squeezy and Kefir children’s snacks such as fruit
fibre in its new snacks range. Slurpy are made with natural and nut bars, sweet biscuits,
The company also tried to reach ingredients, whole milk and fruit, yoghurt and vegetable chips.
a wider range of consumers and are available in flavours to One of Good Gout’s unique
through its INR20 and INR10 appeal to children and parents selling points is its focus on
price points. equally. natural, organic ingredients.

Source: Mars.com Source: Mumsnet.com Source: Nutraingredients-asia.com

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 18
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RAISING NUTRITIONAL PROFILE

Growing appeal of free from labels a cue for future snacks for children

▪ With the rises in instances of food World Health and Wellness Packaged Food by
intolerance and in the prevalence of food Type 2014/2019, and Growth 2019-2024
allergies, informed consumers, especially 180 6%
parents, are increasingly concerned about
food purchased and consumed outside the 160

home. Free from claims are most 5%


140
frequently used in dairy, given lactose

USD billion, constant 2019 rsp


intolerance is common and awareness is
120 4%
widespread. With eating out becoming
more common, however, parents are

CAGR
100
increasingly looking for free from food 3%
outside of the dairy category, and this 80
represents opportunities for manufacturers
to introduce allergen-free products in 60 2%
snacks, which is the packaged food
category most consumed outside the 40
1%
home.
20
▪ Another approach to dealing with allergies
is to introduce children to common 0 0%
allergens, such as peanuts, in smaller
quantities at a younger age so that they
develop immunity. This represents a
potential area for innovation as well. 2014 2019 % CAGR 2019-2024

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 19
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RAISING NUTRITIONAL PROFILE

Allergens a promising innovation route in and beyond the free from aisle

▪ For parents with children Marty’s Chickpea Snacks, UK


who have allergies, it is a
▪ Danone launched its Marty’s allergy-free range
struggle to provide nutritious
of snacks in the UK in 2019. The range
food because of the limited
includes chickpea popped crisps and dairy-free
products available in
desserts. These products are free from gluten,
supermarkets. Growing
peanuts and egg. Danone used a very targeted
awareness among parents of
distribution approach, using unconventional
the rise in food allergies, as
distribution channels, including soft play areas
documented by health
Source: grocer.com and children’s theatres.
organisations such as the US
Centers for Disease Control
and Prevention, encourages Puffworks Baby, multiple countries
parents to look for products
▪ Puffworks Inc baby organic peanut butter puffs,
that are free from allergens.
were launched in 2018 in the US. The snack
▪ Another approach to range encourages parents to introduce
overcoming the problem of peanuts, the most common allergen, to infants
food allergies, which is that at an early age to build immune defence and
of building early immune reduce the chances of developing an allergy
defence, represents another later. This is in line with the new medical
interesting route of Source: pour-nourrir- guidelines introduced by the National Institute
innovation, especially in demain.fr of Allergy and Infectious Diseases.
snacks for children.

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 20
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RAISING NUTRITIONAL PROFILE

Cognitive development in toddlers, a key area of innovation

▪ Many tech-savvy new generation parents Prime Positioning for Baby Milk Formula by
rely on parenting apps to learn parenting Region 2019
techniques. These apps emphasise the
Asia
importance of boosting cognitive Pacific
development right from birth, and have been
instrumental in parents focusing on their North
America
children’s brain health. For instance, the
Nuryl app is intended to educate parents Western
how to boost infants’ brain development and Europe

cognition from an early age. Another app, Latin


Brain Kids, uses games to boost the brain America
development of children aged 7+ years,
Eastern
while keeping them engaged. Europe
▪ Brain health and memory is the second
largest claim globally on baby milk formula Australasia
packaging, after general wellbeing. Parents
across the world treat brain development as Middle East
and Africa
a key area to focus on, and when babies
grow to become children, parents continue 0% 20% 40% 60% 80% 100%
to look for food with brain health and % retail value sales

memory benefits. Many food products General Wellbeing Brain Health and Memory
targeting younger children, in particular, Bone and Joint Health Digestive Health
feature brain health as a key claim. Immune Support Vision Health

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 21
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RAISING NUTRITIONAL PROFILE

US leads the way in brain development foods for toddlers

Brainiac Kids, US Cerebelly baby food, US

Source: foodnavigator-usa.com Source: Cerebelly.com

▪ Brainiac offers a range of milk yoghurts and ▪ Cerebelly was developed by a neurosurgeon to
yoghurt drinks focused on providing brain nutrition provide tailored nutrients during the specific
to children. The product includes a “brainpack”, development window of babies’ brains. It looks at
which contains choline, omega-3 and DHA, all the growth period of each region of the brain and
sourced from natural ingredients, such as flaxseed maps it to the nutritional needs at each stage. The
and algae. The product is low in sugar, and thus brand has chosen vegetables as the first
addresses a common concern regarding yoghurt, ingredients to develop the right taste preferences
and is high in protein, while ensuring that it is tasty from childhood and to avoid sugar. The product is
and liked by picky eaters too. Brainiac quickly shelf stable and comes in convenient packaging. It
expanded its presence across the US, and is is available in 10 flavours to offer variety in taste.
available in a wide range of outlets.

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INTRODUCTION
OVERVIEW: SNACKS, CHILDREN AND
PARENTS
RAISING NUTRITIONAL PROFILE
MAKING CHILDREN'S SNACKS ACCESSIBLE
FUTURE OUTLOOK
MAKING CHILDREN'S SNACKS ACCESSIBLE

Increasing convenience and accessibility of children snacks

Portability and Transparency Easier Retailing Consumer


Portioning Through Through Clean Through E-Commerce Endorsement
Packaging Design Labels • Amid faster paced Through Enhanced
• By introducing smaller • Clean labels draw lifestyles and consumers Experience
pack sizes and/or more attention with a simple increasingly looking for • Developing the
convenient pack types and healthy ingredients ways to reclaim quality experience around
than the standard list. Typically paired time, the retailing of discovering or buying a
flexible plastic, such as with a minimalist snacks is evolving product increasingly
pouches and thin wall approach to branding towards more online matters to create
plastic containers, and on-pack design, ordering and direct impetus among
brand owners are able clean labels also delivery. Subscription consumers. Initiatives
to make it easier for simplify the message models are one route to such as technological
parents to carry and thereby aid attract new parents, for innovations for digital
children’s snacks and parents’ decision- whom shopping trips consumer engagement
to give them the making process. and decision-making can and monobrand pop-up
amounts they need. feel particularly time and stores can be explored
energy consuming. by snacks brands for
children.

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 24
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MAKING CHILDREN'S SNACKS ACCESSIBLE

Smaller pack sizes allow portion control and keep prices in check

▪ Smaller pack sizes allow parents to control the World Food Packaging, Retail Unit
portion of snacks and hence limit indulgence. In Volume Size and CAGR 2018-2023
addition, smaller packs and single-serve packs
2,500 25%
promote product trials and avoid wastage. Parents

CAGR 2018-2023
usually prefer to buy smaller pack sizes for children 2,000 20%

Billion units
who are picky eaters. According to Euromonitor 1,500 15%

International’s survey, 44% of parents said that their 1,000 10%


children are picky eaters. 500 5%

▪ Smaller packs are even more important in developing 0 0%


total less than 100g more than 1kg
and price sensitive markets. Lower price is one of the
2013 2018 2023 CAGR 2018-2023
key attributes parents look for in children’s snacks.
RXBar Kids Messy Monkey baked snacks

1 bar 1 bar 33g Freedom Foods, Australia


52g ▪ Freedom Foods launched Messy
Monkey snacks in Australia in 2017 and
extended its range to baked snacks for
children. The US launch was made in
2018..
Source: Rxbar.com ▪ It offered this product that is both
RXBar Kids, June 2017, US nutritious and affordable with the right
balance of ingredients per serving for
RXBar was launched in 2012, and the brand launched smaller size bars in
parents in varying income brackets.
2017 for children, keeping their clean label packaging consistent. The
difference between bars for adults and for children is ingredient portion size, ▪ The product comes in a 10x14g
eg the adult version has three egg whites and the children’s version has multipack, with a net weight of 140g.
two. The dimension are also smaller and they weigh less. Source: Freedomfoods.com.au

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MAKING CHILDREN'S SNACKS ACCESSIBLE

Packaging to enhance portability for on-the-go consumption

▪ Besides right portioning, parents consider Stand-up Pouches vs Total Packaging:


portability as an important factor, especially Growth Comparison by Region 2019-2024
when choosing snacks for younger children. 10
Pack types such as plastic pouches and

% volume CAGR
8
stand-up pouches have gained attention on 6
the back of increased demand for on-the-go
4
snacks consumption.
2
▪ Stand-up pouches come with plastic
closures and ensure that the product can be 0
resealed and used again. Resealable packs
have considerable appeal in children’s
snacks, since children do not necessarily
Packaging % CAGR Stand-up pouches % CAGR
consume the entire product at one time, even
if the product is correctly portioned. Stand-up Danone Kids Yoghurt
pouches are preferred for yoghurt, which is
Danone introduced its new range of yoghurt in
an increasingly popular snack for children. 2019, to be sold in the UK. The yoghurt contains
▪ Thin wall plastic containers in categories simple fruit and vegetable ingredients with no
additional sugar and no preservatives. The
such as savoury snacks ensure portability yoghurt is available in two pack types – pots and
and allow children to eat from the same pack pouches. The pots come in single serve and
sharing pack sizes. The pouches are intended to
more than once. provide a convenient pack for on-the-go
▪ Overall, flexible packaging still remains the consumption by children.

preferred pack type for children’s snacks


Source: ocado.com
globally.

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MAKING CHILDREN'S SNACKS ACCESSIBLE

Clean labels, to simplify parents’ decision making

▪ Parents pay more attention I closely read the nutrition labels of food and beverages
to reading food and beverage before consuming
packaging labels than non- 60%

parents, according to 50%

% respondents
Euromonitor International’s 40%

Lifestyle Survey. 30%


20%
▪ Most parents are seeking out
10%
shorter ingredient lists and
0%
are avoiding artificial 2015 2016 2017 2019 2020
additives. They want to know
Parent with children ages 0-17 in home Non-parent or parent of grown children
what is in the product, rather
Source: Euromonitor International’s Lifestyle Survey, 2020 n=41,231
than what is not.
▪ Therefore, many brands are Siggi’s Kids Yoghurt pouches, US
adopting clean label
In 2019, Siggi’s Dairy tapped into the needs of parents who are
packaging initiatives, looking for wholesome offerings without added sugar or artificial
especially in snacks for ingredients that their children will enjoy, and launched Siggi’s Kids
yoghurt pouches. The packaging clearly communicates the benefits
children category, where and short list of ingredients, with a “30% fewer ingredients” claim and
transparency and food safety a minimalist packaging design.
are of paramount importance
for parents, and this will
continue to be an area of
focus.
Source: Siggi’sdairy.com

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MAKING CHILDREN'S SNACKS ACCESSIBLE

E-commerce preferred by consumers seeking convenience

▪ Many consumers seeking convenience switched to Top 10 Countries for Snacks by


the e-commerce channel for snacks purchases in E-commerce Sales 2019
both developed and developing markets over 2014- 8,000 60%

USD millon
2019 . Globally, the top three motivations driving the 6,000 45%

CAGR
switch to online channels are best price, time saving 4,000 30%
and ability to order anytime, anywhere, in that order, 2,000 15%
according to Euromonitor International’s lifestyle 0 0%
surveys.
▪ As of 2019, e-commerce accounted for 3% of snacks
value sales, with it being a bigger channel for savoury
snacks and sweet biscuits than for confectionery. 2019 retail value sales 2014-2019 % CAGR

Despite being small, e-commerce is an important part


of leading companies’ omnichannel strategies, given Fastest Growing Countries for
that consumers’ purchases through e-commerce E-commerce Snack Sales 2014-2019
have increased rapidly. New small and disruptive 200 120%

companies are leveraging the channel to reach

USD million
150 90%

CAGR
consumers directly in a more economical manner. 100 60%
▪ Demand for convenience will accelerate the shift to 50 30%
e-commerce and will also lead to the emergence of
0 0%
new business models, such as subscription services
and direct-to-consumer. Companies should consider
both the growth and size of the prize to tailor their
strategies to different markets. 2019 retail value sales 2014-2019 % CAGR

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MAKING CHILDREN'S SNACKS ACCESSIBLE

Subscription boxes make snacks more accessible to time pressed


parents
ChewyMoon, UK Timios weekly pack, India Top Five Subscription
Motivations 2020

Convenience

Enjoy the
products/brand

Source: Chewymoon.com Source: FirmRoots.com


Try a variety of new
▪ ChewyMoon has launched the ▪ Firmroots Private Ltd has products
UK’s first nutritionally balanced launched an age-appropriate
snack box to offer convenience 100% natural product range for
To save money
to parents. The range of snacks children from 2-12 years, aiming
includes cheese, fruit and to fill a gap in the market in
biscuits. Time-pressed parents India. In this range, it recently Was given
often struggle to offer balanced introduced a weekly snack pack subscription as a gift

nutrition to children on a daily and a school bag pack as


basis, and ChewyMoon has subscription boxes to provide Recommendations
from friends and
simplified this by providing nutritional balance over a week. family
options to subscribe to snack The pack is a mix of energy
0% 25% 50%
boxes for three months, six bars, crunchies, snack sticks % respondents
months or a year. Each box has and puffs.
Source: Euromonitor International’s Lifestyle
10 snacks and a fun activity to Survey 2020, n=15,819
keep children engaged.

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MAKING CHILDREN'S SNACKS ACCESSIBLE

Engaging with children consumers: An increasingly fine balance to strike

▪ In developed markets, there is heightened awareness Kellogg’s brand engagement with children
of the possible challenges in advertising food products
directly to children. There is a growing debate around Kellogg’s The Kids Café,
how brand owners address children through UK
advertising and marketing, including what features on ▪ The Kids Café is a pop-up
breakfast café for children,
the pack. with creative activities. It
▪ Advertising is being monitored from the social allows children to create
customised bowls with
responsibility aspect, and brand owners are looking at Kellogg’s new range of
responsible ways to engage with children when WK Kellogg’s cereals.

promoting healthier food products. For instance,


Unilever in the UK has confirmed that it will stop
Source: Campaignlive.co.uk
advertising food and drinks to children.
Augmented reality game by WK Kellogg by Kids

Kellogg has introduced an augmented reality game played on Facebook to


highlight the nutritious ingredients that go into the products, to promote the newly
launched WK Kelloggs’ brand. WK is a plant-based cereal brand.

Kellogg’s innovative approach to engaging with children is very appealing and


potentially inspiring for other brand owners.

Source: Campaignlive.co.uk

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MAKING CHILDREN'S SNACKS ACCESSIBLE

Engaging with child consumers by co-creating the food flavours

▪ Taste is the biggest deterrent to healthy eating and Top Barriers to Healthy Eating among
also to the success of new launches of healthy Children Globally 2019
children’s snacks. Manufacturers appreciate that
Gen Z’s taste preferences are very sophisticated, Picky eater

given their exposure to many flavours since Meals outside home


childhood.
Taste of healthy food
Co-creation
▪ Some manufacturers, such as Kashi, are co- Lack of healthy food at school
creating products with children – from ingredients
No cooking time
to flavour selection – to ensure that the taste
appeals to children. Many companies test their 0% 10% 20% 30% 40% 50%
food flavours with children before launch. % respondents

Gimmies yoghurt crunch Kashi Organic Super Food Bites


Kashi by Kids, 2018, US
Chobani Gimmies, 2018, US
▪ Soft baked snack bites made from high quality
Chobani Gimmies is a line of Greek yoghurt superfood plant-based ingredients. These
products with 13 flavours. Gimmies are made come in two flavours – chocolate and mixed
with natural non-GMO ingredients. The brand berry. The snack bites are high in protein and
features new characters and offers new fibre, and come in a convenient portable
flavours designed to appeal to – and tested pouch, making on-the-go consumption easy.
by – children of 5-9 years. The product range The company is focused on creating products
includes yoghurt tubs, milkshakes in bottles, that appeal to both parents and children.
sachets and pouches.
Source: Chobani.com

Source: kashibykids.com

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INTRODUCTION
OVERVIEW: SNACKS, CHILDREN AND
PARENTS
RAISING NUTRITIONAL PROFILE
MAKING CHILDREN'S SNACKS ACCESSIBLE
FUTURE OUTLOOK
FUTURE OUTLOOK

Children aged 3-7 years and developing markets offer opportunities

The Six Countries with the Largest Child Populations: Segmentation by Age 2024
140,000

120,000

100,000
Population(’000)

80,000

60,000

40,000

20,000

0
India China Indonesia Nigeria Pakistan US

0-2 years 3-7 years 8-12 years

▪ Most of the countries that have the largest child populations are developing and emerging markets,
indicating a clear opportunity for brand owners to explore. Busier lifestyles and the convenience-seeking
attitudes of parents are slowly seeping into developing markets, as consumers spend more time outside the
home.
▪ The child population aged 3-7 years represents the largest opportunity within the child population globally
in terms of size. Children in this age band can often be persuasive; however, their snack purchases are
influenced heavily by parents, which is a key factor for brand owners to consider.

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FUTURE OUTLOOK

Considerable room for growth in developing markets

▪ With more women joining the workforce in developing and emerging markets, consumers’ and parents’
affluence is increasing, but they are left with less time to spend at home or cook. Consumers in developing
markets increasingly favour convenient meal options, which has benefited eating out and sales of packaged
foods which require little preparation time.
▪ With a significant drop in the frequency of eating home-cooked food, consumers in developing markets are
becoming more conscious about their health and their children’s too. There is, however, a dearth of
healthier snacks for children. Other factors, such as awareness and affordability, are also likely to help any
new launches in this space succeed.

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FUTURE OUTLOOK

From targeted occasions to snacks for every occasion

Busier lifestyles have increasingly made breakfast a snack occasion,


Breakfast and mid-
at least for parents, and there is potential to replace the traditional
morning snacking time-consuming breakfast menus for children.

Health-conscious working parents are often worried about children


Lunch eating in school cafeterias. Providing healthy packaged snacks in
school bags can address these concerns.

Many children globally snack on biscuits, fruit or milk before evening


Post-school and playtime or after playtime. These quick bites could be products that
mid-evening are more nutritionally rich, representing a promising occasion for
snack manufacturers.

On-the-go occasions

Parents are looking out for


All day Holidays healthy alternatives for
occasions such as holidays,
(impulse playtime and car rides, in
snacking) Playtime/hobby classes order to improve their
children’s nutritional intake.

Children’s stayovers/sleepovers

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FUTURE OUTLOOK

Key takeaways: What do new parents want from their children’s snacks?

Parents have increasingly high nutritional expectations of children’s snacks. Time scarcity has
increased parents’ reliance on packaged foods; however, they continue to struggle to provide
balanced nutrition for their children.

For children’s snacks, parents prefer minimally processed food and simple ingredients,
and this has led brand owners to use naturally functional ingredients. Artificial fortification
would still be an opportunity to explore in developing markets to bridge nutritional gaps.

Clean labels that communicate the ingredients and child-friendly portable packs simplify
the purchase decision-making of parents. E-commerce and subscription boxes are
emerging as parents’ preferred channels for repeat purchases, given the convenience
offered.

Experiential engagement with children and parents’ endorsement are both important to
increase a brand’s appeal.

With the lifestyle gap between developing and developed markets closing, parents in
developing markets are on the lookout for products in newer categories, such as snackable
yoghurt and snack bars.

© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN – TARGETING A NEW GENERATION OF PASSPORT 36
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FOR FURTHER INSIGHT PLEASE CONTACT
Ina Dawer
Research Manager
[email protected]
Experience more...
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