Americans have an immense love for snack foods and most of the snacks are purchased globally by the Americans only. However, purchasing snacks is definitely not limited just to America. People from various other parts of the world are also purchasing different kinds of snacks. Currently, almost everyone is leading a busy lifestyle and this is what is forcing them to eat it in a completely different manner. Most of the people have started replacing their full meals with small portions of snacks. The busy lifestyle is also responsible for changing the manner in which the customers are shopping for snacks.
This condition has been responsible for creating a huge opportunity for snack food brands. People are buying snacks through the various online channels. Currently, more customers are interested in purchasing snacks online, through subscription services, e-commerce, or click and collect methods. In order to ensure that this situation is taken advantage of, both the big as well as the small snack food brands require amazing shelf strategies, which will focus on remaining ahead in the competitive market and also win online.
Overview of the market of snack food
The snacking market of the United States is going to see a growth of 4% of the annual rate of $64 billion by 2021. It is true that the landscape of macro food has not completely matured online; however, people prefer buying snack foods. According to www.onespace.com, almost 42% of consumers are purchasing snack foods online. In fact, the online sales of the snack food brands have seen tremendous growth the previous year. The reason behind this is the value propositions of the snack foods. Snacking is responsible for serving numerous functions for the customers, right from hunger satisfaction to true indulgence to boosting energy. It is also important to understand that most of the sub-categories of snack foods, especially functional and healthy snacks have already started embracing the amazing power associated with digital commerce.
Snacks that sell the most online
An important thing that you have to understand is that not every snack category is created equal when online popularity is being considered. Few snack categories do not have the same power of growing online in comparison to the growth that they can see in normal retail shops. In the categories of salty, candy, and cookies, e-commerce is not capable of driving a great growth proportion in comparison to wholesome snacks. In the case of wholesome snacks, digital channels are responsible for around 42.5% of the dollar growth. Other snack categories observing great growth from the e-commerce companies include nuts and crackers, as stated by Nielsen.
Prioritizing click and collect
In comparison to various other categories of CPG, beverages, and other foods have not been able to adapt to e-commerce as a channel of sales because of the numerous difficulties associated with shipping any individual item. This is also exceptionally true for the segment of snack foods, where any heavy item, that has a low margin, like juices and soft drinks, can become extremely expensive for shipping. Furthermore, chips and crackers can be damaged easily, and perishable items like cheese and meat are known to require proper temperature control, or it is obvious that they are going to go bad before reaching the customer.
As a result of these, click and collect is responsible for presenting a huge opportunity for snack food brands, especially for those products, which are not at all suitable for traditional retail shops. The snack categories that are normally being purchased through click and collect depend on the kind of retailer, however, a Nielsen study has revealed that shoppers across a number of store types, like grocery, club, and mass, are using click and collect for the snack foods. This definitely means that each and every snack food brand, irrespective of the size, need to prioritize retailers, which are actively building the click and collect capabilities.
Trying out subscription services
Subscription services, as well as automated ordering, are also popular fulfillment options for purchasing online snacks. Almost 29.8 percent of the autopilot customers are making use of this option to order snacks online. Nielsen also discovered that snack foods belonged to the top 10 of the categories of online grocery that were fulfilled through subscription services. This definitely means that all the brands of snack food need to test the direct-to-consumer subscription service and make sure that all the products are available to the customers through numerous third party services.
Standing out online
It is true that the online subscription of snacks has increased, but Nielsen discovered that stocking up snacks is definitely an important trip type for purchasing an online snack. Almost 27% of the snack orders online are considered to be stock-up trips. It has also been discovered that customers are freer when they are purchasing snack foods online in comparison to purchasing snack foods from brick and mortar stores.
In order to ensure online success, the brands of snack food have to concentrate on beating the competitors and also increase their visibility on the website of the retailers. Paid advertisements can also be effective but it is even more important to appear right on top of the search results when customers are searching for certain terms, which are relevant to specific snack products.
Packaging should not be neglected
Visibility is going to mean nothing if any customer is not satisfied with the snack foods when they arrive at his doorstep. In order to succeed through any pure-play e-commerce channel and ensure ideal snacks delivery, brands have to consider the product packaging in such a manner that it survives the final delivery mile. This is definitely an important marketing proposition that has to be included in the product listings.
It was observed that most of the customers prefer purchasing snack foods via digital channels. In order to ensure that you are a part of the competition, you need to consider the strategies that have been mentioned above in order to make your brand win online.