No Sugar Please: How Snacks are Being Redefined

1. NO SUGAR PLEASE: HOW SNACKS ARE BEING REDEFINED EUROMONITOR’S PRESS BRIEFING – FOOD & NUTRITION FRIDAY 30TH SEPTEMBER 2016 LONDON, UK

2. © Euromonitor International 2 How Much Sugar Is The Average Global Consumer Buying? INTRODUCTION 72g Average purchase of sugar per capita per day, globally in 2015 2% Annual growth rate of sugar purchased over 2015-2020 of global respondents look for foods that have limited or no added sugar 47% Source: Euromonitor International Global Consumer Trends Survey 2016 Sugar purchased, per capita consumption in 2015 5-29g 30-54g 55-81g 82-94g 95-127g

3. © Euromonitor International 3 The War on Sugar: The Evolution of Snacks CHANGED SNACKING SPACE, NEW BRAND STRATEGIES US$505 bn Conventional snacks 5% Sweet Biscuits Confectionery Crisps Soft Drinks 7% Yoghurt and Milk Products Savoury Snacks Energy Bars Nuts, Seeds and Trail mixes US$140 bn Healthy snacks Y-o-yGrowth,2014-2015

4. © Euromonitor International 4 Changes in UK Snacking Mean a Shift in Ingredients INGREDIENT ADDITION DEFINING PRODUCTS Source: Euromonitor International

5. © Euromonitor International 5 Share packs Pack Sizing Strategies Help Sustain Growth in Conventional Snacks GREATER CONVENIENCE ON THE GO IN PACKAGING Standard pack sizes Small treats More Portion control Less consumer guilt More impulse purchase “We’ve seen an increasing polarisation of pack sizes in conventional snacks, as larger formats are marketed for a shared consumption, and smaller sizes, more commonly launched as ‘calorie packs.” Karine Dussimon, Senior Analyst – Packaging research at Euromonitor International.

6. © Euromonitor International 6 HW vs NON-HW (%) share Confectionery HW vs NON-HW (%) share Biscuits and Snack Bars HW vs NON-HW (%) share Sweet and Savoury Snacks Health and Clean Label: UK vs World FUTURE EXPECTATIONS IN HEALTH AND WELLNESS 9 16 91 85 0% 50% 100% UK World HW Non- HW 21 23 79 78 0% 50% 100% UK World HW Non-HW 23 24 77 77 0% 50% 100% UK World HW Non- HW 0 0 4 1 0 15 0 5 10 15 20 Protein Fibre Sugar GRAMS PER CAP PER DAY World UK 1 0 1 1 1 1 0 1 1 2 2 Protein Fibre Sugar GRAMS PER CAP PER DAY World UK 1 0 22 1 7 0 2 4 6 8 Protein Fibre Sugar GRAMS PER CAP PER DAY World UK Source: Euromonitor International Source: Euromonitor International Source: Euromonitor International

7. © Euromonitor International 7 Wrap-up KEY TAKEAWAYS New products will take a larger slice of the snacking pie, resulting in further acquisitions Selective use of ingredients will allow product re-positioning and grow mass market appeal Use packaging type and sizing innovation to convey calorie control and portability Big food companies to continue on a health drive as demand for healthy food will transform the industry

8. THANK YOU FOR LISTENING Extract from the press briefing presentation compiled by Euromonitor’s Food and Nutrition team: • Ewa Hudson, Head of Health and Wellness Research • Jack Skelly, Analyst – Packaged Food Research • John George, Analyst – Ingredients Research • Karine Dussimon, Senior Analyst – Packaging Research For press inquiries, reach out to the Communication team. Find out more about Euromonitor’s research and request a demo.