Table of Contents
Issues in the Market
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- Key themes
- Definition
- Abbreviations
Future Opportunities
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- A Simple Balance for Health
- The Real Thing
Market in Brief
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- Growth of 29% to £479 million forecast by 2015
- Everyday and healthy bars capture two thirds of the market
- Kellogg's dominates the market
- On-the-go snacking, lunchboxes and health continue to provide opportunities
- Three in five adults eat cereal, snack and energy bars
- Strong interest in variety packs, nutritional benefits and adventurous varieties
- Non-users put off by poor value and health credentials
Internal Market Environment
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- Key points
- Snacking and treats benefit in the recession
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- Figure 1: Trends in the tendency to snack and eat treats, 2006-10
- Half the nation snack on the go
- The lunchbox opportunity remains lucrative
- Additive-free food can still justify a premium
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- Figure 2: Trends in attitudes towards ingredients and additives in food, 2006-10
- One in three adults are trying to lose weight
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- Figure 3: Trends in attitudes towards weight control and calories, 2006-10
Broader Market Environment
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- Key points
- Changing age profile brings opportunities and challenges
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- Figure 4: Changes in the age structure of the UK population, 2010-15
- Growth of C2s is good news for the cereal and snack bar market
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- Figure 5: Changes in the socio-economic structure of the UK population, 2010-15
- Consumer spending to recover slowly
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- Figure 6: Consumer expenditure at current and constant 2010 prices, 2005-15
- Cost pressures loom
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- Figure 7: Weekly prices of cereals in England and Wales, 2008-10
Competitive Context
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- Key points
- Cereal, snack and energy bars play many roles
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- Figure 8: Performance of selected markets competing with cereal, snack and energy bars, 2009-10
- Figure 9: Performance of selected markets competing with cereal, snack and energy bars, 2005-10
- Many bars compete with wholesome snacks...
- …while others aim for indulgence
Strengths and Weaknesses
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Fragmented NPD activity reflects the structure of the market
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- Figure 10: New product launches in the UK cereal, snack and energy bar market, by brand, 2010
- Vegetarian and no additives are top claims
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- Figure 11: New product launches in the UK cereal, snack and energy bar market, by top 16 claims, 2010
- Figure 12: Change in share of all new product launches in the UK cereal, snack and energy bar market, by claim, 2008-10
- Claims popular in overall food gain ground
- Mixed trends in functional claims
- Functional bars enjoy active NPD globally
- Chocolate and strawberry are top flavours
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- Figure 13: Top five most common flavour components in new cereal, snack and energy bars, 2008-10
- Smaller formats appear on the global arena
- Boundaries between bars and biscuits continue to blur
Market Size and Forecast
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- Key points
- Annual growth rates are slowing
- Underlying consumer trends and brand activity support growth
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- Figure 14: Forecast of UK retail sales of cereal and snack bars, by value, 2005-15
- Forecast
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- Figure 15: Forecast of UK retail sales of cereal and snack bars, by value, 2005-15
- Slow spending growth and ageing population dampen short-term outlook
- …growth of ABs and healthy eating bodes well longer-term
- Forecast methodology
Segment Performance
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- Key points
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- Figure 16: UK retail value sales of cereal, snack and energy bars, by type, 2010 (est)
- Nature Valley has energised everyday bars
- Mixed performance from healthy bars
- Kellogg’s Rice Krispies Squares drive sales of children’s bars
- Eat Natural still leads the premium end
Market Share
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- Key points
- Kellogg’s leads a fragmented market
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- Figure 17: Manufacturers’ estimated shares in UK retail value sales of cereal, snack and energy bars, 2010
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- Figure 18: Brand shares in the cereal, snack and energy bar market, by value, 2008-10
- Mixed performances from market leaders
- Strong marketing support fuels rising stars
- Eat Natural maintains share
- Own-label still small
Companies and Products
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- Kellogg’s
- United Biscuits
- Weetabix
- Eat Natural
- General Mills (Nature Valley)
- Jordans
- Mars
- Raisio
- Big Bear Group
- Glisten
Brand Elements
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- Brand map
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- Figure 19: Attitudes towards and purchase of cereal, energy and snack bar brands, December 2010
- Brand attitudes
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- Figure 20: Attitudes by cereal, energy and snack bar brand, December 2010
- Brand personality
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- Figure 21: Cereal, energy and snack bar brand personality – macro image, December 2010
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- Figure 22: Cereal, energy and snack bar brand personality – micro image, December 2010
- Correspondence analysis
- Brand experience
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- Figure 23: Cereal, energy and snack bar brand usage, December 2010
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- Figure 24: Satisfaction with various cereal, energy and snack bar brands, December 2010
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- Figure 25: Consideration of cereal, energy and snack bar brands, December 2010
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- Figure 26: Consumer perceptions of current cereal, energy and snack bar brand performance, December 2010
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- Figure 27: Cereal, energy and snack bar brand recommendation – Net Promoter Score, December 2010
- Brand index
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- Figure 28: Cereal, energy and snack bar brand index, December 2010
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- Figure 29: Cereal, energy and snack bar brand index vs. recommendation, December 2010
- Target group analysis
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- Figure 30: Target groups, December 2010
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- Figure 31: Cereal, energy and snack bar brand usage, by target groups, December 2010
- Group One – The Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – The Individualists
Brand Communication and Promotion
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- Key points
- Adspend fluctuates as major players adjust strategies
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- Figure 32: Main monitored media advertising spend on cereal bars, 2006-10
- £2 in every £3 of adspend is by Kellogg's
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- Figure 33: Main monitored media advertising spend on cereal bars, by advertiser, top five, 2008-10
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- Figure 34: Main monitored media advertising spend on cereal bars, by brand, top ten, 2008-10
- TV still dominates
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- Figure 35: Main monitored media advertising spend on cereal bars, by media type, 2008-10
- Celebrity and TV tie-ups gain popularity
Channels to Market
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- Key point
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- Figure 36: UK retail distribution of cereal bars, by value, by type of outlet, 2007-10
- Impulse, treat and meal demand provide opportunities
Consumer – Usage of Cereal and Snack Bars by Brand
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- Key points
- Youngsters, families and C2s eat cereal, snack and energy bars most
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- Figure 37: Usage of cereal, snack and energy bars in the last six months, by type, November 2010
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- Figure 38: Usage of cereal, snack and energy bars, by age and household income, November 2010
- Lapsed users geared towards 25-44-year-olds
- Usage by children is rising slowly
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- Figure 39: Consumption of cereal bars – 7-19s, 2008-10
- Most users are brand-loyal
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- Figure 40: Repertoire of consumption of cereal, snack and energy bars in the last six months, November 2010
- Only the diet bars have a clear female bias
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- Figure 41: Usage of cereal, snack and energy bars in the last six months, by type, by gender, November 2010
Consumer – Occasions for Eating Cereal, Snack and Energy Bars
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- Key points
- A filling, on-the-go snack with strong health credentials
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- Figure 42: Attitudes of users towards cereal and snack bars, November 2010
- The bars are first and foremost for on the go
- The bars enjoy image as filling
- Two in three choose the bars as a 'better-for-you' alternative
- The bars are a treat to nearly half of users
Consumer – Attitudes towards Cereal, Snack and Energy Bars
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- Key points
- Nutrition and variety packs spark majority interest
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- Figure 43: Attitudes towards choosing and buying cereal, snack and energy bars, November 2010
- High interest in nutritional benefits
- Variety and adventurous flavours chime with consumers
- Price is not all-important
- Only a minority shun the bars at home
Consumer – Non-users' Attitudes towards Bars
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- Key points
- Doubts about value for money and healthiness are key barriers
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- Figure 44: Non-users' attitudes towards cereal, snack and energy bars, November 2010
- Poor value image remains an issue for the bars
- Half of non-users doubt healthiness of the bars
- One in three think the bars are for dieters
Targeting Opportunities
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- Key points
- Four target groups
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- Figure 45: Target groups for cereal and snack bars, November 2010
- Indulgers (38%)
- Snack-swappers (17%)
- Bar Lovers (24%)
- Big Spenders (21%)
Appendix – Internal Market Environment
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- Figure 46: Agreement with selected lifestyle statements, 2006-10
- Figure 47: Agreement with selected lifestyle statements, by demographics, 2010
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- Figure 48: Agreement with selected lifestyle statements, by demographics, 2010 (continued)
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Appendix – Competitive Context
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- Figure 49: Performance of selected markets competing with cereal, snack and energy bars, 2006-10
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Appendix – Market Size and Forecast
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- Figure 50: Best and worst case forecasts for cereal and snack bars, 2010-15
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Appendix – Consumer – Usage of Cereal, Snack and Energy Bars
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- Figure 51: Cereal, snack and energy bars eaten in the last six months, by brand/type, November 2010
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- Figure 52: Most popular cereal, snack and energy bars eaten in the last six months, by brand/type, by demographics, November 2010
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- Figure 53: Next most popular cereal, snack and energy bars eaten in the last six months, by type, by demographics, November 2010
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- Figure 54: Other cereal, snack and energy bars eaten in the last six months, by brand/type, by demographics, November 2010
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- Figure 55: Consumption of cereal bars – 7-19s, by demographics, 2010
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- Figure 56: Consumption of cereal, snack and energy bars in the last six months, by brand/type, by repertoire, November 2010
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- Figure 57: Repertoire of consumption of cereal, snack and energy bars in the last six months, by demographics, November 2010
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Appendix – Consumer – Users' Attitudes towards Cereal, Snack and Energy Bars
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- Figure 58: Attitudes of users towards cereal, snack and energy bars, November 2010
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- Figure 59: Agreement with the statement ‘I eat it when I need a filling snack’ and ‘I eat it as part of a meal eg lunch, as a dessert after dinner’, by demographics, November 2010
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- Figure 60: Agreement with the statement ‘I eat it when I need a snack on the go’ and ‘It’s more nutritious than snacks like chocolate/sweets/crisps’, by demographics, November 2010
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- Figure 61: Agreement with the statement ‘It’s a lower-calorie alternative to snacks like chocolate/sweets/crisps’ and ‘I eat it when I feel like a treat’, by demographics, November 2010
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- Figure 62: Agreement with the statement ‘I eat it when I need an energy boost’, by demographics, November 2010
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Appendix – Consumer – Attitudes towards Choosing and Buying Cereal, Snack and Energy Bars
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- Figure 63: Attitudes towards choosing and buying cereal, snack and energy bars, November 2010
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- Figure 64: Agreement with the statement ‘I prefer cereal/snack/energy bars with more adventurous/exotic flavours/ingredients’ and ‘I often buy more expensive bars that are made from quality ingredients’, by demographics, November 2010
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- Figure 65: Agreement with the statement ‘I buy multipacks of cereal/snack/energy bars’ and ‘I’d sometimes rather buy single bars than multipacks‘, by demographics, November 2010
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- Figure 66: Agreement with the statement ‘I’d buy more cereal/snack/energy bars if they were easier to find in-store’ and ‘I only buy cereal/snack/energy bars when they are on promotion’, by demographics, November 2010
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- Figure 67: Agreement with the statement ‘I would be interested in multipacks offering different flavours/varieties’ and ‘I would be interested in cereal/snack/energy bars with nutritional benefits (eg high in fibre)’, by demographics, November 2010
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- Figure 68: Agreement with the statement ‘I rarely eat cereal/snack/energy bars at home’, by demographics, November 2010
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- Figure 69: Attitudes towards choosing and buying cereal, snack and energy bars, by repertoire, November 2010
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Appendix – Consumer – Non-users’ Attitudes towards Cereal, Snack and Energy Bars
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- Figure 70: Non-users' attitudes towards cereal, snack and energy bars, November 2010
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- Figure 71: Agreement with the statement ‘I am not sure what cereal/snack/energy bars are’ and ‘I’ve tried them but wouldn’t buy them again’, by demographics, November 2010
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- Figure 72: Agreement with the statement ‘I think they are mainly aimed at dieters’ and ‘I buy them for my children but not for myself’, by demographics, November 2010
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- Figure 73: Agreement with the statement ‘I don’t think they look very appetising’ and ‘If I am going to have a snack then I’d rather have something else (eg chocolate, crisps etc)’, by demographics, November 2010
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- Figure 74: Agreement with the statement ‘I don't think they are any healthier than other snacks’ and ‘I am not interested in healthy snacks’, by demographics, November 2010
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- Figure 75: Agreement with the statement ‘They are expensive compared to other snack options’, by demographics, November 2010
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Appendix – Consumer – Target Groups
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- Figure 76: Target groups, by demographics, November 2010
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- Figure 77: Consumption of cereal, snack and energy bars in the last six months, by brand/type, by target groups, November 2010
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- Figure 78: Repertoire of consumption of cereal, snack and energy bars in the last six months, by target groups, November 2010
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- Figure 79: Attitudes of users towards cereal and snack bars, by target groups, November 2010
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- Figure 80: Attitudes towards choosing and buying cereal, snack and energy bars, by target groups, November 2010
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- Figure 81: Statements on eating habits, by target groups, November 2010
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