Snacking and immunity booster products that were high in sales during COVID are still growing at double digits, said market research firm Kantar.
These segments saw huge panic buying during the first wave last year when consumers stayed in their homes due to coronavirus-related restrictions. Kantar had expected the segments to slow down after mobility improved and out-of-home consumption occasions rose, but it did not happen.
According to Kantar, snacking continues to impress with consistent growth, and as a result, snacking is right now out-performing all expectations and is growing at 12%. While immunity categories are growing at 14.8% right now.
Many companies said COVID-induced work-from-home made two long-term changes to the consumption behaviour of most urban households. In one, households shifted from a “3-meals-plus-1-snack” per day consumption pattern to a “2-to-3-meals-plus-multiple-snacks” per day consumption pattern. Secondly, consumers increasingly chose their food based on the health and immunity quotient of the products they purchased, sometimes even if that meant compromising on taste.
Anish Basu Roy, founder of TagZ Foods, said that the preference for better-for-you snacks like our popped chips with 50% less fat, which can combine taste and health, will increase further.
It is unlikely that consumers will compromise on taste altogether by choosing health bars and immunity balls in the long term. While snacking occasions will remain high, consumers may not always choose packaged snacks, and some of the needs will be met by eating out or ordering in.
While most packaged foods saw a jump in sales last year, categories including cold beverages had an underwhelming performance as hotels, restaurants, and caterers (HoReCa) were shut down or operated with restricted hours. However, the segment has grown by 21% since January of this year.Kantar expected the category to close the year with a growth of around 16%.