The Sweets & Snacks Expo featured IRI’s Sally Lyons Wyatt to present an annual review of the snack food industry including the opportunity in eCommerce.
E-commerce may have a small base for total food sales, but the dollar sales trends are strong. Lyons Wyatt explained that e-commerce business is different using dried meat snacks and granola bars as examples.
Web shares for these segments lagged for the category leader, but the online share for minor brands is much higher in the web than in the store as shelf space is not an issue. As NCA has found before, online is as much about convenience and price as it is about finding items shoppers cannot find at their local store. For instance, in-store, the meat snack category leader has a 31 percent share. Its online share is only 21 percent. To the contrary, a niche brand has a share of 3 percent in-store versus 8 percent online. This underscores the importance of a tailored assortment featuring consumer favorites and some intriguing surprises.
Lyons Wyatt goes on to say, “we are at the center of a consumer buying revolution,” and shared five staggering statistics:
- 77% of all retail sales will be influenced by digital
- 76% of all shopping trips begin online
- 71% of all product searched begin on retail sites
- 55% of product searches begin on Amazon
- 50% of CPG category market growth will be online by 2018
So what does that mean for snacks?
She advised retailers to study the omni-channel opportunity for snacks outlining a $2.7 billion e-commerce growth opportunity between now and 2022. View Sally’s presentation along with the other presentations from the 2017 Expo.