In developed countries, market saturation has led to shrinking growth; in emerging markets, socio-economic issues have dampened expected growth. This is the reality facing the snack industry, with retail sales growing only 1.7% in 2015, the lowest since 2008. In the snack industry, confectionery & chocolate, the largest segment, saw the smallest growth at just 1%, with chocolate maintaining 2% growth while candy sales showed no positive performance. As chewing habits disappear, gum continues to decline. In the past few years, North America and Western Europe have seen declines; however, this year the situation is different. Latin America is the worst, growing only 0.3% in 2015, largely due to the economic and political downturn in the three major snack markets: Brazil, Argentina, and Venezuela. China, which has been the cornerstone of growth for many years, also faced a significant market decline in 2015, with only a slight rebound in 2016. The changes in the Chinese market are exactly what Mondelez, Hershey, and other snack giants are concerned about. Note: The left vertical axis and blue bars represent market share size (in millions of USD); the right vertical axis and red wavy line represent year-over-year (Y-O-Y) growth rate. Need for more natural and healthy products As media increasingly links sweet snacks, such as candy, to childhood obesity and other diseases, consumers are becoming more aware of their recommended sugar intake and the sugar content of different sweet snacks. This is one of the most important factors hindering growth of sweet snacks in developed markets. How to solve? Products need to present a more natural image to consumers. Processed fruit snacks for children and fruit and nut bars for adults still have growth potential in developed markets. KIND bars are hailed as a "game changer" in the U.S. snack bar market; in the UK, brands like Nakd snack bars sell products through clean label claims. ▲ Sweet snacks: finding growth opportunities in developed markets Note: The vertical axis represents the compound annual growth rate from 2011-2016, and the horizontal axis represents the growth amount from 2011-2016 (in millions of USD). Savory snacks trending towards independence The concept of "alternative snacks" is another hot topic in the snack industry in 2016. This concept originally came from a snack product that does not contain potato or corn ingredients. Other typical examples include IPS egg white chips and Calbee Harvest Snaps made from pea flour and lentil flour. The launch of these new products reflects consumers' increasing desire for differentiation and preference for snacks made from healthier ingredients than the usual staples of potatoes and corn. In addition, meat snacks have also stood out in this field, such as ConAgra's Slim Jim and Link Snacks' Jack Link's. This has also inspired some confectionery or other companies to venture into meat snacks, such as Hershey's acquisition of Krave and General Mills' purchase of EPIC Provisions. However, due to the World Health Organization's health warnings and consumers' increasing concern about the negative environmental impact of cattle farming, the long-term future of meat snacks remains uncertain. Overall, the future of the snack industry looks brighter than the present, with annual growth expected to recover to above 2% from 2017 onwards. Latin America returning to stability and the expected rebound growth in the Chinese market will drive global market recovery. In emerging markets, we should improve snack distribution channels to drive market growth. In developed markets, snack brands will shift towards premiumization, and more natural and healthy alternative snacks will give brands greater value. Content source: Foodaily Daily Food Network -END- The best learning platform for FMCG distributors in China Focusing on providing professional, practical, and actionable tutorials for companies and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]