Happy New Year! Here at Watson we are excited to start the New Year and, like you, have been looking ahead to what the year ahead will bring, especially in the area of healthy snacks. Lets discuss several of the factors that will be influencing healthy snack sales in 2013.

According to Mintel, there are several demographic factors that will influence snack sales in the upcoming year.

A better economy means better habits. Unfortunately, many believe that eating healthy means spending more. During the economic downturn of 2008, many people abstained from purchasing healthy snacks to “save a buck or two”. However, with the economy improving and disposable income increasing, many consumers feel more comfortable purchasing healthy snacks and feel more comfortable “splurging” on healthy food then they did a few years ago. According to Mintel, 38% of healthy snackers say they are purchasing healthier snack options this year. However, economic improvement is not good news for snack companies alone. During the uncertain economic times, many snack companies limited R&D spending and product launches to remain conservative. However, now that conditions are looking better, many snack companies have increased their R&D spending. This means more innovative and better quality snacks for consumers.

Women desire healthy snacks. According to Mintel, although women tend to purchase less snacks overall then their male counterparts; the snacks women do choose tend to be healthier, with 78% of their snacks purchases consisting of healthy snacks. While this makes men the greatest target segment for growth, women remain the most engaged consumers. As women tend to be more receptive to “health-related marketing efforts”, according to Mintel, there is opportunity in creating healthy snacks specifically formulated to meet women’s needs, such as calcium for bone health, antioxidants for healthy skin, and energy boosting vitamins.

Young snackers are avid snackers. While young snackers, classified as those being between the ages of 18-34, tend to eat more snacks then average, they also tend to eat less healthy snacks on average. According to Mintel, snackers in this age group are “less likely to make an intentional effort to eat healthfully”. However this segment is poised to grow, with 23% of snackers in this segment saying they plan to purchase more snacks in the upcoming year. To cater to these consumers, snack companies should focus on product attributes other then health such as energy boosting attributes that would appeal to this fast-paced segment.

Sell to your elders. Another growing segment are the more distinguished consumers, those who are 55+. According to Mintel, this age group represents the fastest growing and largest population segment, with the 55-64 age group expected to grow 31% and the 65-74 group expected to grow by 48% by 2016. Healthy snacks with “low in” qualities, such as snacks that are low in sugar and cholesterol, and are formulated with ingredients like glucosamine, calcium and vitamin E that promote joint, bone, and heart health, will greatly appeal to this group as they look to maintain their active lifestyles.

Family feud: healthy vs. tasty. As mentioned in earlier posts, while children are avid snackers, they are also some of the pickiest. According to Mintel, the percentage of healthy snacks consumed in a household with kids is lower then households without – 75.3% compared to 79.2%. However, the current focus on childhood obesity has encouraged parents to choose healthier options for their tots. According to a Fleishman-Hillard and Motherhood.com survey, 78% of mothers say they are reading more food labels to look for ingredients they want to avoid, such as high fructose corn syrup, high-levels of sugar, artificial dyes and gluten. The challenge for snack companies is to create healthy snacks that come in kid-friendly portions and combine kid-friendly flavors with parent-friendly nutrition. Portability is another important aspect when developing snacks for this segment as the majority of snacks are consumed on the go.

In addition to the factors listed by Mintel, there are several taste and flavor trends that will be hot in 2013. According to Datamonitor’s 2013 consumer trend watch, high impact flavors, such as balsamic vinegar and caramelized onion, will be extremely popular when it comes to chips and dips. For bakery snacks, different textures will make the consumption experience more interesting while sugar becoming more acceptable. According to a recent IFIC survey, 61% of consumers believe that sugar does not need to be eliminated from their diet in order to loose weight. This shows that many consumers are willing to accept small amounts of sugar in their snacks. Protein also remains an important factor for snacks, with consumers becoming more focused in the protein contribution of yogurt in a variety of snacks, such as yogurt covered granola bars and dairy-based chips.

All-in-all, there are a lot of things that snack companies should be aware of when formulating snacks this upcoming year, from custom formulations and marketing campaigns to unique flavors and ingredients to reach their target markets. I don’t know about you, but yogurt covered granola bars and caramelized onion flavored chips sound delicious to me!