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POTATO AND TORTILLA CHIPS-US-FEBRUARY 2018

Published By :

Mintel

Published Date : Feb 2018

Category :

Food

No. of Pages : N/A

Potato and tortilla chips have generated solid growth in recent years, driven by the increasing prevalence of snacking, a steady stream of new flavors, and the category’s status as a permissible indulgence. Bold and creative new flavors and forms will continue to drive sales in coming years, along with a greater emphasis on premium quality and clean ingredient lists.

Table of contents
OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Category on track for continued modest growth
Figure 1: Total US sales and fan chart forecast of potato and tortilla chips, at current prices, 2012-22
Potato chip purchase near universal, tortilla chips have room to grow
Figure 2: Chips purchase, November 2017
Chip purchasers can be creatures of habit
Figure 3: Factors influencing chips purchase, November 2017
The opportunities
Snacking dominates usage for both potato and tortilla chips
Figure 4: Chip occasions, November 2017
Younger chip purchasers more likely to buy on impulse
Figure 5: Chip behaviors, by age, November 2017
Adults 35-54, a key secondary target, express strong interest in concepts
Figure 6: Chip innovation areas, by age, November 2017
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Category on track for continued modest growth
Potato chips account for majority of category sales
Salty snacks maintain strong growth
Snacking continues to grow more prevalent
MARKET SIZE AND FORECAST
Category on track for continued modest growth
Figure 7: Total US sales and fan chart forecast of potato and tortilla chips, at current prices, 2012-22
Figure 8: Total US sales and forecast of potato and tortilla chips, at current prices, 2012-22
MARKET BREAKDOWN
Potato chips account for majority of category sales
Figure 9: Share of potato and tortilla chips sales, by segment, 2017
Tortilla chips drive growth
Figure 10: Sales of potato and tortilla chips, by segment, 2012-17
MARKET PERSPECTIVE
Salty snacks maintain strong growth
Figure 11: Total US sales of salty snacks, by segment, 2012-17
MARKET FACTORS
Snacking continues to grow more prevalent
Figure 12: Snacking frequency, March 2017
Number of households with children down for now
Figure 13: Households, by presence of own children, 2007-17
KEY PLAYERS – WHAT YOU NEED TO KNOW
PepsiCo remains dominant
Ruffles gains on shift to young male target
Heat wave: Takis continues to gain on intensely hot flavors
Continued decline for old-line regional chip brands
Uglies: using blemished potatoes to combat food waste
COMPANY SALES OF POTATO AND TORTILLA CHIPS
PepsiCo remains dominant
Campbell’s purchase of Snyder’s-Lance may intensify competition
Private label gains may reflect the weakness of smaller regional brands
Sales of potato and tortilla chips by company
Figure 14: Multi-outlet sales of potato and tortilla chips, by leading companies, rolling 52 weeks 2016 and 2017
WHAT’S WORKING?
Ruffles gains on shift to young male target
Heat wave: Takis continues to gain on intensely hot flavors
On the Border continues to grow, branches into bold flavors
WHAT’S STRUGGLING?
Continued decline for old-line regional chip brands
Sales of baked chips stagnate
WHAT’S NEXT?
Cape Cod continues to push premiumization
Uglies: using blemished potatoes to combat food waste
Increasing emphasis on clean labels
Figure 15: Potato and tortilla chip packaging claims, 2013-2017
Beyond flavor: textures and combinations
THE CONSUMER – WHAT YOU NEED TO KNOW
Potato chip purchase near universal, tortilla chips have room to grow
Chip purchasers can be creatures of habit
Snacking dominates usage for both potato and tortilla chips
Many chip purchasers guided by habit, but impulse could drive growth
Restaurant style and spicy flavors draw interest, consistent with market success
Okay to indulge on chips, up to a point
CHIPS PURCHASE
Potato chip purchase near universal, tortilla chips have room to grow
Plain varieties purchased most widely, but category increasingly diverse
Figure 16: Chips purchase, November 2017
Variety of chips purchased drops among older adults
Figure 17: Chips purchase, by age, November 2017
Highest incidence in households with school-aged kids
Figure 18: Chips purchase, by presence and age of children, November 2017
Tortilla chip purchase skews to White, Hispanic consumers
Figure 19: Chips purchase, by race and Hispanic origin, November 2017
FACTORS INFLUENCING CHIPS PURCHASE
Chip purchasers can be creatures of habit
Figure 20: Factors influencing chips purchase, November 2017
Younger purchasers more interested in new flavors, dietary preferences
Older shoppers more attuned to health measures
Figure 21: Factors influencing chips purchase, by age, November 2017
CHIP OCCASIONS
Snacking dominates usage for both potato and tortilla chips
Figure 22: Chip occasions, November 2017
CHIP BEHAVIORS
Many chip purchasers guided by habit, but impulse could drive growth
Figure 23: Chip behaviors, November 2017
Younger chip purchasers more likely to buy on impulse
Figure 24: Chip behaviors, by age, November 2017
CHIP INNOVATION AREAS
Restaurant style and spicy flavors draw interest, consistent with market success
Figure 25: Chip Innovation areas, November 2017
Adults 35-54, a key secondary target, express strong interest in concepts
Figure 26: Chip Innovation areas, by age, November 2017
ATTITUDES TOWARD CHIPS
Okay to indulge on chips, up to a point
Figure 27: Attitudes toward chips, November 2017
Those purchasing more are an opportunity for premium, all-natural chips
Figure 28: Attitudes toward chips, by change in amount purchased, November 2017
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET
Figure 29: Total US sales and forecast of potato and tortilla chips, at inflation-adjusted prices, 2012-22
Figure 30: Total US sales and forecast of potato chips, at current prices, 2012-22
Figure 31: Total US sales and forecast of potato chips, at inflation-adjusted prices, 2012-22
Figure 32: Total US sales and forecast of tortilla chips, at current prices, 2012-22
Figure 33: Total US sales and forecast of tortilla chips, at inflation-adjusted prices, 2012-22
Figure 34: Total US retail sales of potato and tortilla chips, by channel, at current prices, 2012-2017
APPENDIX – KEY PLAYERS
Figure 35: Multi-outlet sales of potato chips, by leading companies and brands, rolling 52 weeks 2016 and 2017
Figure 36: Multi-outlet sales of tortilla chips, by leading companies and brands, rolling 52 weeks 2016 and 2017

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