Snacking occasions have increased as have the types of products that are being consumed as snacks. Encompassing one third of the world´s value of Packaged Food, the Americas are a diverse region of snacking. Some Latin American countries show opportunities as consumers shift away from artisanal / unpackaged snacks while the more developed North American countries need to focus on innovation to meet the latest consumer needs in order to grow. Health and wellness regulation and trends as well as convenience play a major role in the category´s development and performance. Who will be the winners and losers of this market?

1. SNACKING: A TOP TREND IN THE AMERICAS
FEBRUARY 2016

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Americas: a tale of two distinct regions
OVERVIEW
* Excluding Argentina and Venezuela due to distortionary foreign exchange effects.
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2010 2011 2012 2013 2014 2015
Currentvaluegrowth,fixed2015exchangerates
Packaged Foods Growth
Latin America * North America World
The Americas
• 1/3 of global US$ Packaged
Foods sale.
• US sales are 4 times Brazil’s,
7 times Mexico’s.
North America
• Retail volume sales are down
since 2010.
• Value-added products and
snacking buoy the industry.
Latin America
• Continued impressive, but
decelerating value growth.
• Retail expansion and lifestyle
changes drive growth.

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The Snacks Universe
OVERVIEW
Packaged
Food Snacks
Universe
Biscuits & Snack Bars
Cakes
Confectionery
Ice Cream
Pastries
Sweet & Savoury Snacks
Yogurt
Snacking occasions have increased as have the types of products
that are being consumed as snacks. It is important to consider the full
Snack Universe when looking to reach today’s consumer.

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A Diverse Region of Snacking
OVERVIEW
Brazil
ChileColombia
Costa Rica
Mexico
Peru
Canada
US
0%
2%
4%
6%
8%
10%
12%
$0 $100 $200 $300 $400 $500
2010-2015CAGR
US$ per capita
Snacks Universe 2015
Opportunities as consumers
shift away from artisanal /
unpackaged snacks.
Strong historic growth will
confront difficult economic
circumstances ahead.
Developed, but still growing
by successfully meeting the
latest consumer needs.
CAGR : compound annual growth rate
In this graphic we consider the trajectory of select countries’ US$ snacking per
capita consumption over the previous five years to arrive at their 2015 level.

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The Snackification of Packaged Foods
OVERVIEW
25% 30% 35% 40%
North America
Australasia
Asia Pacific
World
Latin America
Western Europe
Eastern Europe
Middle East and
Africa
% Snacks in Packaged Foods
Snacks Penetration
2005 2015
The World
Snacks % has
remained flat
at 32%… …while
Snacks in Latin
America and
North America
advance faster
than other
regions.
In the US 10%
of Packaged
Food sales go
to Sweet &
Savoury
Snacks only

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Fastest Growth Snacks Categories in 2015
OVERVIEW
Increasingly consumers
are looking to a variety
of packaged food
products to satisfy their
snacking needs. As
seen here in the
diversity of the fastest
growth categories,
success is not one-
size-fits-all. Consumer
demand is driving
categories that best
adapt to their daily
routine and meet their
evolving tastes.
Cakes
Sweet & Savoury Snacks
Yogurt
2015 Fastest Growth Category

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Elements of
Convenience
Busier Lifestyles
(Especially in Capital Cities)
Packaging
Innovation
(Re-closable, Portable)
Expanded
Distribution
(Easier Access)
Convenience Plays a Vital Role in Snackification
SNACKING DRIVERS

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Example
Driver
Country Argentina
Distribution:
Expanded
infrastructure for
frozen snacks
Freezers for
products like
Chocotorta
ready-to-go
dessert by Arcor
Packaging:
Focus on more
portable product
packaging
Arcor Cereal Mix
bars, Yogurisimo
Cremix Dessert
Convenience Drivers in the Americas
SNACKING DRIVERS
Costa
Rica
Distribution:
Retailer
engagement in
snack trends
Convenience
stores and
supermarkets
giving snack
foods prime shelf
space
Packaging:
Focus on more
portable product
packaging
Bioland and
NutriSnacks
snack bars;
multipack ice
cream from Dos
Pinos

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Example
Driver
Country Mexico
Distribution:
Rapid growth in
convenience-
focused retailers
Rapid growth in
convenience
stores like Oxxo;
driving snack
food availably
Busier
Lifestyles:
Socioeconomic
trends promote
snacking
Urbanisation and
more working
women make
yoghurt, biscuits
and snack bars
popular breakfast
alternatives
Convenience Drivers in the Americas
SNACKING DRIVERS
USA
Packaging:
Focus on more
portable product
packaging
Belvita Biscuits,
Kit Kat Minis,
Nutella & Go,
KIND Snack
Bars, Chobani
Yoghurt; Meat
Snacks
Distribution:
Consumers
favour
convenience-
based channels
Snack sales at
forecourt retailers
grow with lower
gasoline prices,
consumers spend
savings inside the
store on snacks

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Demand for Health &
Wellness Snacks
Obesity
crisis:
Consumers
looking to eat a
healthier diet
Indulgence:
Consumers still
want to treat
themselves
Regulation:
Taxes or other
regulations
against junk food
Health & Wellness also Drives Snack Innovation
SNACKING DRIVERS

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In Mexico, an 8% special tax on
high-caloric food took effect in
January 2014, impacting many
snack food categories.
In response, manufacturers in
categories like confectionery
introduced smaller portion sizes
to reduce the selling price of the
product and maintain sales.
In Chile, new regulation will tag
all products that exceed a
certain threshold of sugar,
saturated fat, or sodium with a
notorious “high in” label.
Companies are working to
change their product
formulations or stand to witness
declines in sales.
Bolivia, Costa Rica, Peru and
Uruguay introduce bans on the
sale of foods high in salt, sugar
or fat content at schools.
In some cases, these regulations
have helped other categories. In
Peru, snack bars has grown,
including brands like Angel
Break, which are marketed for
children.
Regulation Drives Better Snacking
SNACKING DRIVERS
Regulation drives consumer snack habits

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Yoghurt: A high-protein, low-fat snack
• Trending In: Bolivia, Canada, Chile, Costa Rica, Dominican Republic
Ecuador, Mexico, USA
• Examples: Yaqú (Ecuador), Pil Andina (Bolivia), Yoka Yoghurt Slender
(Dominican Republic), Digess de Migurt (Venezuela)
Snack Bars: Natural Ingredients, minimal processing
• Trending In: Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica,
Ecuador, Mexico, Peru, US
• Examples: Trio Nuts (Brazil), Angel Break (Peru), Simsa (Bolivia), KIND
(USA), Arcor Cereal Mix (Argentina)
Premium Offerings: Higher-Quality Indulgences
• Trending In: Bolivia, Canada, Chile, Colombia, Mexico, USA
• El Ceibo confectionery (Bolivia), Santander confectionery (Colombia),
Talenti ice cream (USA)
Demand Drives Growth from Healthier Snacks
SNACKING DRIVERS

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Winners & Losers
SNACKING DRIVERS
Premium, Less-Processed,
Better-for-You Snacks
Highly-Processed, Less
Healthy Snacks Snack foods that are high in sugar, fat or calories
face challenges from both government regulation and
consumer preferences. In several countries, state
action like taxes or even outright bans of “junk foods”
– often employed in the fight against obesity – have
become increasingly common. At the same time,
consumers want “healthy indulgence” offerings that
they can enjoy with less guilt.
Consumers increasingly want snack foods that they
can eat in place of traditional meals. This benefits
higher-protein snacks which aid in satiety, as well as
better-for-you offerings that cut the amount of salt, fat
or sugar in a consumer’s diet. At the same time,
shoppers are increasingly turning away from artificial
ingredients in favour of more natural snacks.
WINNERSLOSERS

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THANK YOU FOR LISTENING
Jared Koerten
Senior Food Analyst
Jared.Koerten@Euromonitor.com
Sean Kreidler
Research Manager
Sean.Kreidler@Euromonitor.com
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