Industry Analysis
II – Industry Analysis
2.1 Industry Description This industry analysis will aid in researching the industry which is the Snack Food industry. We can also determine how the company will compete in the industry.
2.2 Industry Trends The progressively improved Philippine economy towards 2012 and 2013 was seen to benefit sweet and savoury snacks. Also, the higher purchasing power translated into greater purchasing ability even for more expensive sweet and savoury snacks, allowing greater room for numerous product launches. In the present years, factors such as current trends, cultural trends, health factors and physiological factors ensure that the high demand for finger foods will remain constant.
1. Current Trends- “Hot/Spicy Flavours “Heat Up” the Market within sweet and savoury snacks, manufacturers are introducing new products aimed at consumers’ increasing affinity for hot/spicy flavours. In April 2011, for instance, Frito-Lay partnered with the Tapatio hot sauce brand to release Tapatio-flavoured Doritos, Fritos, and Ruffles chips/crisps (tortilla, corn, and potato, respectively). The company also launched its Cheetos Crunchy Fiery Fusion line in 2011, while other manufacturers worked with major hot sauce companies like McIlhenny Co (Tabasco brand) to produce spicy-flavoured snacks. This trend follows what we have seen in related categories like spicy chili/pepper sauces, which have seen dramatic growth in recent years. These spicy flavours are especially popular with younger consumers” (Euromonitor International, http://www.euromonitor.com/sweet-and-savoury-snacks-in-the-philippines/report, February 2014).
2. Cultural Trends- According to Technomic’s Snacking Occasion Consumer Trend Report, 48% of consumers are snacking at least twice a day, up from 25% in 2010. As restaurants have adapted to this trend, their share of the snack market has increased from 17% in 2010 to 22% today. 30% of consumers are snacking away from home, up from
2.1 Industry Description This industry analysis will aid in researching the industry which is the Snack Food industry. We can also determine how the company will compete in the industry.
2.2 Industry Trends The progressively improved Philippine economy towards 2012 and 2013 was seen to benefit sweet and savoury snacks. Also, the higher purchasing power translated into greater purchasing ability even for more expensive sweet and savoury snacks, allowing greater room for numerous product launches. In the present years, factors such as current trends, cultural trends, health factors and physiological factors ensure that the high demand for finger foods will remain constant.
1. Current Trends- “Hot/Spicy Flavours “Heat Up” the Market within sweet and savoury snacks, manufacturers are introducing new products aimed at consumers’ increasing affinity for hot/spicy flavours. In April 2011, for instance, Frito-Lay partnered with the Tapatio hot sauce brand to release Tapatio-flavoured Doritos, Fritos, and Ruffles chips/crisps (tortilla, corn, and potato, respectively). The company also launched its Cheetos Crunchy Fiery Fusion line in 2011, while other manufacturers worked with major hot sauce companies like McIlhenny Co (Tabasco brand) to produce spicy-flavoured snacks. This trend follows what we have seen in related categories like spicy chili/pepper sauces, which have seen dramatic growth in recent years. These spicy flavours are especially popular with younger consumers” (Euromonitor International, http://www.euromonitor.com/sweet-and-savoury-snacks-in-the-philippines/report, February 2014).
2. Cultural Trends- According to Technomic’s Snacking Occasion Consumer Trend Report, 48% of consumers are snacking at least twice a day, up from 25% in 2010. As restaurants have adapted to this trend, their share of the snack market has increased from 17% in 2010 to 22% today. 30% of consumers are snacking away from home, up from