With the snacking market becoming ever more competitive, how do new entrepreneurs decide which categories will give them the greatest chance of success and growth without having to spend a huge amount of money on research?
Global market research consultancy TNS says it has the answer. Using a proprietary tool called Growth Point, the firm recently released a report on its top 20 growth potential snacking categories. Growth Point analyzes both unmet consumer needs and the rate at which consumers are moving into a category. According to TNS, it is the combination of these two factors that generates the greatest potential for growth.
Here are the categories the company found:
TNS’ report indicates that health, especially protein-dense products, and permissible indulgence are the areas with the best growth potential, while products like chips and chocolate candy fall into the group with the least potential. TNS was careful to point out that Growth Point does not tell brands and retailers what will grow, just what has the biggest potential for growth.
So, while chips and chocolates may have high volume and show sales growth, they are saturated markets where new initiatives will have a tougher time of gaining traction compared to more health-oriented categories like nuts and yogurt.
TNS’ list was generated from more than 19,000 consumer interviews covering 250 food and beverage products.