Market Trends of South Africa Snack Bar Industry
Demand for Convenient and Healthy On-The-Go Snacking
The demand for convenience foods is growing faster due to changes in social and economic patterns and increased expenditure on food and beverage products, awareness about healthy foods, changes in meal patterns and existing food habits, and the desire to taste new products. Snacking is common in South Africa during social occasions or on the go. However, healthier snacking options are becoming more popular as customers become more informed. Snacks often include bars with whole grain wheat and other cereals, although pulse flours, nuts, and organically processed grains are also being used. Moreover, the rising disposable income of consumers is also adding to the demand for snack bars in the country. On-the-go snacking is becoming extremely popular, especially among working-class people, teenage children, people living in hostels, and bachelors due to their hectic lifestyles. Moreover, the on-the-go snacking concept is closely associated with the easy consumption and handling of snack bars' products. Thus, the demand for snack bars is increasing due to the linked convenience of consumption, aided by disposable packaging that prevents the bars from coming in contact with hands, keeping them clean to work simultaneously.
Supermarkets/Hypermarkets Lead the Distribution Channel Segment
Over time, consumer demand for easy and nutritious on-the-go snack choices has been the most crucial factor in the sales of snack bars. In addition, the evolving lifestyles of South African consumers, which include the consumption of smaller meals, contribute to increased consumption of energy bars, which are the healthier choice. Thus, supermarkets/hypermarkets provide a super-sized shopping experience with suitable displays and assortments of indulgent snacking products. The proximity factor of these channels, especially in bigger cities and metropolitan areas, gives them an added advantage of influencing the snacking habits of consumers.
Supermarkets/Hypermarkets hold a relatively high market share in the distribution channel segment in the region. The distribution of multi-brand items is being accelerated by expanding supermarket chains, such as Shoprite, Pick n Pay, Spar, and Woolworths, among others. According to the USDA Foreign Agricultural Services, Shoprite witnessed 36% of the market share in this segment, followed by Pick n Pay and Spar at 18%, and Woolworths having 9%.
These supermarkets are focusing more on hassle-free shopping experiences for customers. Snack bars and other related items are often displayed at the entrance, end of aisles shows, in island bins, at the checkout, and in the designated snack food aisles, which induces impulsive buying behavior among the consumers before they check out from the stores. This factor has boosted the demand for snack bars in supermarkets and hypermarkets.
