SNACK

AT TA C K
WHAT CONSUMERS ARE REACHING
FOR AROUND THE WORLD
SEPTEMBER 2014

Copyright 2014 The Nielsen Company 1

 UNDERSTAND THE
WHY BEFORE THE
BUY OF SNACKING

AROUND THE WORLD

Snack sales totaled $374 billion annually ending March 2014

an increase of 2%* year-over-year

Annual snack sales grew more than two times faster

in developing regions

Snacks as meal replacements are a growing opportunity

Women consume more snacks than men

Consumers want snacks to stick with the basics; the absence

of ingredients is more important than the addition of them

WHO DOESNT LOVE A GOOD SNACK?

Always at the ready, those crispy, crunchy, chewy provisions are our
comfort food when we are down, meal replacement when we are in a
hurry, companion when we are relaxing and party staple when we are
celebrating. These indulgent products, however, often get a bad rap as
they shoulder some of the blame for eating habits that can contribute to
health issues.

As snack manufacturers look to tailor offerings to deliver snacks

that appeal to both the palate and the psyche, knowing what drives
a consumer to pick one snack rather than another is vital to stay
competitive in the $374 billion worldwide snacking industry.

*Adjusted for inflation.

2 SNACK ATTACK
 So whats the go-to nosh for consumers craving a snacksalty, savory,
sweet or spicy? How much are health considerations taken into account
when selecting a snack? As the size of category sales and consumer
need-states across the worldwide snacking industry vary widely from
region to region and country to country, finding growth opportunities
requires both a global and local understanding of what consumers say
and dowhich are not always the same.

The competitive landscape in the snacking industry is fierce, said

Susan Dunn, executive vice president, Global Professional Services,
Nielsen. Demand is driven primarily by taste and health considerations
and consumers are not willing to compromise on either. The right
balance is ultimately decided by the consumer at the point of purchase.
Understanding the why before the buy provides the foresight necessary
to deliver the right product to the right consumer at the right time.

The Nielsen Global Snacking Survey polled 30,000 online consumers

in 60 countries to identify which snacks are most popular around the
world and which health, taste and texture attributes are most important
in the selection criteria. We take an in-depth look at the reasons why
we consume snacks, and we offer insights and recommendations
for expansion opportunities that will help manufacturers better align
offerings to consumer needs and desires.

ABOUT THE GLOBAL SURVEY METHODOLOGY

The findings in this survey are based on respondents with

online access in 60 countries. While an online survey
methodology allows for tremendous scale and global reach, it
provides a perspective only on the habits of existing Internet
users, not total populations. In developing markets where
online penetration is still growing, audiences may be younger
and more affluent than the general population of that country.
In addition, survey responses are based on claimed behavior
rather than actual metered data.
Where noted, the survey research is supplemented with actual
behavior using Nielsens retail and consumer purchase data.

Copyright 2014 The Nielsen Company 3

 SIZE OF THE
OPPORTUNIT Y
SNACKS ARE MORE THAN JUST TAST Y TREATS;
THEYRE ALSO BIG BUSINESS.

Global snack sales totaled $374 billion annually ending March 2014an
increase of 2%* year-over-year, according to Nielsen retail sales data.
Europe ($167 billion) and North America ($124 billion) make up the
majority of worldwide snack sales, with sales flat in Europe, and growing
at a rate of 2% in North America, compared to the previous year. While
annual snack sales in Asia-Pacific ($46 billion), Latin America ($30
billion) and the Middle East/Africa ($7 billion) are significantly lower
than in the other two regions, annual growth in these largely developing
regions increased more over the past year4% in Asia-Pacific, 9% in
Latin America and 5% in the Middle East/Africa.
NON-SUGARY
So what types of snacks are driving sales around the world? It depends
on where you live.
SNACKS ARE
Confectionswhich include sugary sweets, such as chocolate, hard
SHOWING
candy and gumcomprise the biggest sales contribution to the overall
snack category in Europe ($46.5 billion) and the Middle East/Africa ($1.9
STRONG
billion). Salty snacks contribute more than one-fifth of snack sales in
North America ($27.7 billion), refrigerated snacks comprise almost one-
GROWTH
third of snacks in Asia-Pacific ($13.7 billion) and cookies and snack cakes
make up more than one-fourth of total snacks in Latin America ($8.6
billion).

Smaller in size but big in potential: the fastest-growing snack categories

are ones to watch. Sales of savory snacks, which include crackers, rice
cakes and pita chips, increased 21% in the last year in Latin America.
Meat snacks, which include jerky and dried meat, grew 25% in the
Middle East/Africa and 15% in North America. Refrigerated snacks,
which include yogurt, cheese snacks and pudding, jumped 6.4% in Asia-
Pacific, while dips and spreads, which include salsa and hummus, rose
6.8% in Europe.

Non-sugary snacks closely aligned with meal-replacement foods are

showing strong growth, which signals a shift in a consumer mindset to
one focused on health, said Dunn. While conventional cookies, cakes
and confections categories still hold the majority share of snack sales,
more innovation in the healthy snacking and portable food space is
necessary to adjust to this changing dynamic.

*Adjusted for inflation.

4 SNACK ATTACK
 THE BIGGEST SNACK CATEGORIES WORLDWIDE

RETAIL ANNUAL DOLL AR SALES ENDING MARCH 2014

NORTH AMERICA EUROPE

$124B SALES (+2% CHG. vs. YA) $167B SALES (NO CHG VS. YA)

SALTY $28B CONFECTIONS $47B

REFRIGERATED $22B REFRIGERATED $36B

CONFECTIONS $20B SALTY $24B

VEGETABLES/FRUIT $17B COOKIES/CAKES $22B ASIA-PACIFIC

$46B SALES (+4% CHG. vs. YA)

REFRIGERATED $14B

COOKIES/CAKES $12B

CONFECTIONS $11B

SALTY $9B

LATIN AMERICA MIDDLE EAST/AFRICA

$30B SALES (+9% CHG. vs. YA) $7B SALES (+5% CHG. vs. YA)

COOKIES/CAKES $9B CONFECTIONS $2B

CONFECTIONS $8B SALTY $2B

SALTY $7B COOKIES/CAKES $1B

REFRIGERATED $5B REFRIGERATED $1B

Source: Nielsen Retail Sales, 52 weeks ending March 2014, adjusted for inflation

Copyright 2014 The Nielsen Company 5

 FRESH FRUIT
IS BEST, BUT
CHOCOL ATE IS
SWEET
We asked consumers around the world what one snack they would
choose above all others. The overwhelming answer: Fresh fruit. But
chocolate is a close second.

Across the regions, and by large margins, global respondents say that
fresh fruit (18%) is the snack of choice selected from a list of 47 different
snacking options, followed by chocolate (15%). Both snack categories
scored more than double or triple the responses for yogurt (6%), bread/
sandwiches (6%), cheese (5%), potato chips/tortilla chips/crisps (5%),
vegetables (5%) and ice cream/gelato (4%). Still, as the low percentages
suggest, consumers preferences vary widely when it comes to picking a
favorite.

Choosing just one snack is hard, which is why consumers dont. They
want variety.

In the span of 30 days, at least half of global respondents say they ate
chocolate (64%), fresh fruit (62%), vegetables (52%), cookies/biscuits
(51%), bread/sandwich (50%) and yogurt (50%). More than four in
10 respondents consumed cheese (46%), potato chips/tortilla chips/
crisps (44%) and nuts/seeds (41%). One-third chewed gum (33%) and
devoured ice cream/gelato (33%), while about one-fourth munched on
popcorn (29%), crackers/crisp breads (28%) and cereal (27%). Softer
offerings like dumplings (26%) and instant noodles (26%) were also
popular with a quarter of respondents.

Taste preferences for snack options are noticeably different around

the world. Besides fresh fruit and chocolate, large percentages of
respondents also snack on vegetables in Asia-Pacific (57%), cheese in
Europe (58%), bread/sandwiches in the Middle East/Africa (47%), ice
cream/gelato in Latin America (63%) and potato chips/tortilla chips in
North America (63%).

6 SNACK ATTACK
 In the dichotomy of snacking, consumers want healthy, but yet
indulgent options are still going strong, said Dunn. A better
understanding of consumer demand and the need states that drive
demographic profile preferences will help manufacturers crack the code
on the right portfolio balance between indulgence and healthy. It will
also increase the odds of success in this ultra-competitive landscape.

Snacking differences between the sexes is also prevalent. Globally,

women drive snacking consumption more than men. More women
consume chocolate (68% women vs. 61% men), fresh fruit (68% vs.
57%), vegetables (56% vs. 49%), cookies/biscuits (55% vs. 48%), bread/
sandwiches (51% vs. 49%), yogurt (57% vs. 44%), cheese (51% vs. 41%),
potato chips/tortilla chips (45% vs. 42%), nuts/seeds (44% vs. 39%)
and gum (34% vs. 32%).

Copyright 2014 The Nielsen Company 7

 TOP 10 FAVORITE SNACKS BY REGION

PERCENTAGE OF CONSUMERS WHO SAID THEY ATE THESE

SNACKS IN THE L AST 30 DAYS

GLOBAL AVERAGE

1. CHOCOLATE 64%
2. FRESH FRUIT 62%

3. VEGETABLES 52%

ASIA-PACIFIC 4. COOKIES/ BISCUITS 51% EUROPE

CHOCOLATE 69% FRESH FRUIT 62%
5. BREAD/ SANDWICH 50%
FRESH FRUIT 65% CHOCOLATE 61%
VEGETABLES 57% 6. YOGURT 50% CHEESE 58%
COOKIES/BISCUITS 55% YOGURT 54%
BREAD/SANDWICH 54% 7. CHEESE 46% VEGETABLES 49%
NUTS/SEEDS 49% COOKIES/BISCUITS 45%
YOGURT 48% 8. CHIPS/CRISPS 44% BREAD/SANDWICH 42%
CHIPS/CRISPS 43% CHIPS/CRISPS 38%
DUMPLINGS 43%
9. NUTS/ SEEDS 41% NUTS/SEEDS 34%
GUM 38% GUM 31%
10. GUM/ICE CREAM 33%

MIDDLE EAST/AFRICA LATIN AMERICA NORTH AMERICA

FRESH FRUIT 52% YOGURT 66% CHIPS/CRISPS 63%
CHOCOLATE 51% CHOCOLATE 64% CHOCOLATE 59%
BREAD/SANDWICH 47% CHEESE 64% CHEESE 58%
CHIPS/CRISPS 43% ICE CREAM/GELATO 63% COOKIES/BISCUITS 56%
CHEESE 42% FRESH FRUIT 57% FRESH FRUIT 55%
YOGURT 41% BREAD/ SANDWICH 55% BREAD/ SANDWICH 48%
COOKIES/BISCUITS 41% VEGETABLES 50% CRACKERS/CRISPBREADS 48%
VEGETABLES 39% POPCORN 49% VEGETABLES 44%
ICE CREAM/GELATO 33% CRACKERS/CRISPBREADS 45% PEANUT BUTTER 44%
POPCORN 26% COOKIES/BISCUITS 44% POPCORN 43%

Source: Nielsen Global Snacking Survey, Q1 2014

8 SNACK ATTACK
 SNACKING WITH A
CONSCIENCE
When reaching for a snack, how much do you think about the
ingredients inside? Are attributes such as artificial coloring, natural
flavors and high fructose corn syrup important criteria in the decision-
making process? What about snacks that contain whole grain, protein
and fiber?

It turns out that more respondents around the world care about the
absence of ingredients than the addition of them. Consumers want
snacks to stick to the basics, said Dunn.

Snacks with all natural ingredients are rated very important by 45% of
global respondents and moderately important by 32%the highest
percentages out of the 20 health attributes included in the study. The
absence of artificial colors (44%), genetically modified organisms
(43%) and artificial flavors (42%) are also rated very important when it CONSUMERS
comes to the snacks we eat. Caffeine-free (23%) and gluten-free (19%)
snacks are very important for about one-fourth and one-fifth of global WANT SNACKS
respondents, respectively.
TO STICK TO
Less is more for roughly one-third of global respondents who think its
very important that snacks be low in sugar (34%), salt (34%), fat (32%) THE BASICS
and calories (30%). One-fourth of those surveyed want snacks that have
either low or no carbohydrates. Conversely, roughly one-third are looking
for beneficial ingredients, rating fiber (37%), protein (31%) and whole
grains (29%) as very important attributes in the snacks they eat.

Environmentally conscious consumers believe it is very important that

snacks include ingredients that are sourced sustainably (35%), are
organic (34%) and use local herbs (25%).

Meanwhile, portion control is very important for just over one-fourth of

global respondents (27%).

Copyright 2014 The Nielsen Company 9

 BACK-TO-BASICS SNACK ATTRIBUTES MATTER MOST

PERCENTAGE THAT RATE HEALTH ATTRIBUTES VERY,

MODERATELY OR SLIGHTLY IMPORTANT

VERY MODERATELY SLIGHTLY

IMPORTANT IMPORTANT IMPORTANT

ALL NATURAL 45% 32% 15%

NO ARTIFICIAL COLORS 44% 31% 15%

GMO FREE 43% 30% 16%

BACK-
NO ARTIFICIAL FLAVORS 42% 33% 16%
TO-BASICS
NATURAL FLAVORS 37% 38% 17%

CAFFEINE FREE 23% 32% 25%

GLUTEN FREE 19% 32% 26%

LOW SALT/SODIUM 34% 37% 19%

LOW SUGAR/SUGAR FREE 34% 37% 19%

LOW FAT 32% 36% 21%

LESS 30% 37% 21%
LOW CALORIES
IS MORE
PORTION CONTROL 27% 39% 23%

NO HIGH FRUCTOSE CORN SYRUP 26% 37% 23%

LOW/NO CARBOHYDRATES 25% 39% 23%

WHOLE GRAIN 29% 37% 21%

MORE
HIGH IN PROTEIN 31% 37% 20%
IS MORE
HIGH IN FIBER 37% 37% 17%

INGREDIENTS SOURCED
SUSTAINABLY/FAIR TRADE 35% 34% 19%

SUSTAINABLE ORGANIC 34% 35% 20%

LOCAL HERBS/INGREDIENTS 25% 35% 25%

Source: Nielsen Global Snacking Survey, Q1 2014

10 SNACK ATTACK
 WHY WE SNACK
Just as no two people are alike, the reasons why we snack are diverse
and varied. But there are some common themes.

The obvious reason we snack is for pure enjoyment. We snack because

it tastes good and the experience is pleasurable. But snacks that are
focused on just enjoyment are missing some key opportunitiestodays
consumers expect snacks to serve many needs.

For instance, more than three-quarters of global respondents (76%) eat

snacks often or sometimes to satisfy their hunger between meals or to
satisfy a craving, but fewer (45%) global respondents consume snacks
as a meal alternative52% for breakfast, 43% for lunch and 40% for
dinner. Middle East/Africa (58%) and Latin America (55%) respondents
exceed the global average for eating snacks as a replacement meal.

There is a perception that snacks are intended more for in-between THERE IS AN
meals than for actual meal replacements, said Dunn. But busy, on-
the-go lifestyles often dictate a need for quick meals, and many opt for OPPORTUNITY
fast food options that can be high in calories and low in health benefits.
There is a massive untapped opportunity to gain market share in the TO GAIN MARKET
nutritious, portable and easy-to-eat meal alternative market that snack
manufacturers could fill. SHARE IN THE
Nutrition is the reason why 63% of global respondents eat snacks, and NUTRITIOUS,
61% snack to get an energy boost. Many also consume snacks when
taking a break (60%) and when passing the time (53%). Therefore, PORTABLE MEAL
its reasonable to believe that given a snack option that fills a need
for nourishment, many consumers will pick an option that is both ALTERNATIVE
convenient and nutritious.
MARKET
Other reasons for snacking are purely emotional. Sixty-four percent of
global respondents eat snacks to improve their mood, 53% as a reward
and 44% because they are stressed. Only 38% consume snacks often or
sometimes to manage their weight.

Copyright 2014 The Nielsen Company 11

 OPPORTUNIT Y GAP BETWEEN SNACKING FOR HUNGER
AND FOR MEAL REPL ACEMENT

THINKING ABOUT THE SNACKS YOU ATE IN THE L AST 30 DAYS,

WHY DID YOU CONSUME THESE SNACKS?

HUNGER MEAL REPLACEMENT

77% 79%
63%
55%
39% 37%
ASIA-
PACIFIC

69% 66% 60%

44% 41% 37%
EUROPE

75%
66% 64% 62% 57% 56%
MIDDLE
EAST/
AFRICA

74% 80%
63% 58% 56%
50%
LATIN
AMERICA

84% 83%
66%
48% 51%
41%
NORTH
AMERICA

SATISFY HUNGER SATISFY PROVIDE

BREAKFAST LUNCH DINNER
BETWEEN MEALS A CRAVING NUTRITION

Source: Nielsen Global Snacking Survey, Q1 2014

12 SNACK ATTACK
 PL ANNER,
PURPOSEFUL OR
SPONTANEOUS
WHAT KIND OF
SNACKER ARE
YOU?
Do you plan all your snack purchases or do you like to try new snacks on
a whim? The majority of global respondents do a bit of both.

Large percentages of global respondents are snack planners. They eat

snacks at home (79%), with family and friends (68%), and they have a
few snacks they keep in rotation (68%). These consumers tend to buy
snacks in the store aisle (63%) and know exactly what they want when
they get to the store (56%). A smaller percentage plans and carries the
snacks they eat each day (36%). Asia-Pacific respondents exceed the
global averages for snack planning.

Nevertheless, many of us are spontaneous snackers. These global

respondents like to try new snacks (65%), buy a variety of snacks (63%),
and do not plan their snack purchases (58%). These consumers often
eat snacks as soon as they buy them (48%) and tend to buy snacks
at the check-out counter (31%). The largely developing regions of
Asia-Pacific, Middle East/Africa and Latin America exceed the global
averages for such spontaneous snacker characteristics. North American
respondents lead the way for buying a variety of different snacks (70%).

Purposeful snackers know what they want in a snack and are very
selective about what they choose. These global respondents prefer
snacks with ingredients that are sourced sustainably (56%) and will
pay extra for fair-trade snacks (47%). Confectionery such as fair trade
chocolate and premium varieties of chocolate are good examples.
Purposeful snackers prefer to buy name-brand snacks (51%), and many
will only buy snacks that are on sale (37%). North Americans have the
highest percentage of respondents that buy snacks on sale (43%).
For sustainably sourced snack ingredients, the highest percentages of
respondents live in Asia-Pacific (68%); for brand-name snacks, its the
Middle East (63%).

Copyright 2014 The Nielsen Company 13

 WHAT KIND OF SNACKER ARE YOU?

PERCENT OF GLOBAL RESPONDENTS WHO

STRONGLY OR SOMEWHAT AGREE

PLANNER

EAT SNACKS AT HOME 79%

HAVE A FEW SNACKS THAT I STICK WITH 68%

EAT SNACKS WHEN WITH FAMILY AND FRIENDS 68%

TEND TO BUY IN STORE AISLE 63%

KNOW WHAT I WANT WHEN I GET TO STORE 56%

PLAN THE SNACKS I WILL EAT EACH DAY 36%

CARRY SNACKS WITH ME EACH DAY 36%

PURPOSEFUL

PREFER WITH INGREDIENTS SOURCED SUSTAINABLY 56%

PREFER BRAND NAME SNACKS 51%

PAY EXTRA FOR SUSTAINABLY SOURCED/FREE TRADE 47%

ONLY BUY SNACKS ON SALE 37%

SPONTANEOUS

ENJOY SNACKS WHEN ALONE 66%

LIKE TO TRY NEW SNACKS 65%

BUY A VARIETY OF SNACKS 63%

MOST SNACK PURCHASES UNPLANNED 58%

OFTEN EAT SNACKS AS SOON AS PURCHASED 48%

TEND TO BUY SNACKS AT CHECKOUT 31%

Source: Nielsen Global Snacking Survey, Q1 2014

14 SNACK ATTACK
 THE GO-TO
DESTINATIONS FOR
SNACKS
Snacks seem to be available almost everywhere we shop. Grocery stores,
convenience stores, warehouse club stores and roadside vendors are just
some of the retail outlets that tempt and tantalize our taste buds. Since
many snack purchases are unplanned, it makes good business sense to
have snacks always at the ready and within arms reach.

But with many retail options available, ensuring the right distribution
outlets are well-stocked with snack options can be a challenge, especially
in a global marketplace where retail channel options and shopping habits
can vary widely.

In Asia-Pacific, the online respondents in our survey are most likely

to shop evenly across three different retail outlets compared to other
regions, which aligns with the variety of different regional snack favorites,
such as chocolate, fresh fruit, vegetables and cookies/biscuits. The top
three go-to snack retailers in the region for these online respondents
are: mass merchandisers/hypermarkets (47%), grocery stores (44%) and
convenience stores (36%). Almost one-fourth of respondents (24%) shop
most often for snacks in small neighborhood stores and 18% shop in
specialty stores. On a less frequent, sometimes basis, however, small
neighborhood stores are the destination pick for 45% of respondents.

In Europe, snacking favorites include fresh fruit, cheese, yogurt and

vegetables so its no surprise that more than half of respondents
(53%) shop most often for snacks in grocery stores, followed by mass
merchandiser/hypermarkets (41%). About one-fifth (22%) buy snacks
most often in convenience stores, 15% in small neighborhood stores and
14% in discount dollar stores. About one-third of respondents shop some
of the time in small neighborhood stores (36%), grocery stores (34%),
mass merchandiser/hypermarkets (34%) and convenience stores (32%).

In the Middle East/Africa, grocery stores are the source for snacks among
the largest number of online respondents in our survey (48%) in the
region, followed by 37% who shop in mass merchandiser/hypermarkets.
Top snacking picks include fresh fruit, chocolate, bread/sandwich and
potato chips/tortilla chips/crisps. Three in 10 online respondents shop in
small neighborhood stores and 26% opt most often for both convenience
and specialty stores. About four in 10 respondents shop some of the time
in small neighborhood stores (43%), mass merchandiser/hypermarkets
(40%) and specialty stores (40%).

Copyright 2014 The Nielsen Company 15

 In Latin America, refrigerated items, such as yogurt, cheese and ice cream
are top regional snack preferences making grocery stores the resounding
favorite retail store for snacks among 67% of online respondents.
Mass merchandiser/hypermarkets (44%), convenience stores (32%),
small neighborhood stores (30%) and warehouse club stores (27%) are
shopped most often by fewer respondents. On a less regular basis, small
neighborhood stores are sometimes frequented by 44% of respondents,
followed by mass merchandiser/hypermarkets (38%), specialty stores
(37%), convenience stores (36%) and discount/dollar stores (35%).

In North America, its common for shoppers to stock up on one-stop

shopping trips, which may account for why respondents say they
shop grocery stores most often for snacks by the widest margin of any
region64% compared with 30% who shop at mass merchandiser/
hypermarkets. Top regional snack favorites include potato chips/tortilla
chips/crisps, chocolate, cheese and cookies/biscuits. While convenience
stores (16%), discount/dollar stores (16%) and warehouse club stores
(14%) are less frequented for snacks on a most-often basis, about
one-third of respondents frequent convenience stores (34%), mass
merchandiser/hypermarkets (33%), discount/dollar stores (31%),
warehouse club stores (30%) and drug stores (30%) some of the time.

16 SNACK ATTACK
 RETAIL CHANNEL PREFERENCES FOR SNACKS

PERCENT WHO BUY SNACKS OFTEN BY OUTLET

GROCERY/ MASS MERCHANDISER/ CONVENIENCE LOCAL SPECIALTY

SUPERMARKET HYPERMARKET NEIGHBORHOOD

ROAD-SIDE DISCOUNT/ WAREHOUSE VENDING DRUG/PHARMACY/

VENDOR DOLLAR CLUB MACHINES CHEMIST

44% 53% 48%

8% 13%
47% 5%
41% 37%
9% 4% 12%

MIDDLE
ASIA- 6%
13% PACIFIC 36% EUROPE 22% 16% EAST/ 26%
AFRICA

13% 24% 14% 15% 21% 30%

4%
13% 18% 11% 15%
26%

67% 64%

11% 10%
44%
6% 30%
7%

LATIN NORTH
27% AMERICA 32% 14% AMERICA 16%

20% 30% 16% 11%

8% 5% 8%
22%

Source: Nielsen Global Snacking Survey, Q1 2014

Copyright 2014 The Nielsen Company 17

 SUCCESS IN
THE SNACKING
INDUSTRY
With close to $400 billion dollars of annual worldwide sales, the
snacking industry is robust and thriving. To keep it growing, snack
manufacturers need to adjust and align strategies to changing
demographic trends, an emerging worldwide middle class, evolving taste
preferences and new retail channel alternatives.

FUTURE GROWTH POTENTIAL

So where will growth come from in the upcoming years? While North
America and Europe are the biggest snack consumption regions from
a sales perspective, growth is lower than in the largely developing SNACK
regions. The biggest future growth will come from the Asia-Pacific region
for two key reasons: increased consumption per capita and an increasing PRODUCTS THAT
population. With a growing middle class, there are more mouths to
feed and more money to spend on snacking. The same is true in Africa, BRIDGE THE
although the growth trajectory for snacks is still lower than Asia-Pacific
at this time. GAP BETWEEN
GLOBAL VS. LOCAL OPPORTUNITIES NUTRITION AND
As consumers continue to aspire to better health and healthier eating,
snack products that bridge the gap between nutrition and indulgence INDULGENCE
with tasty, portable options will break through the clutter both globally
and locally. But there is more to it than that. Regional and local taste WILL BREAK
preferences need to be considered when developing a successful growth
strategy. For example, local snack favorites like instant noodles or THROUGH THE
dumplings in China will leave less space for a global player to compete,
but there are growth opportunities to be found within each snacking CLUTTER
category if you look closely at the underlying consumer dynamics that
are driving behavior.

INGREDIENTS FOR SUCCESS: ASSORTMENT AND

DISTRIBUTION
The two biggest challenges facing snack manufacturers are assortment
and distribution. Finding whitespace opportunities that fit the market
dynamic, culture and taste preferences takes a critical and in-depth
view of the retail landscape and the consumer trends driving purchase
habits. More than half of global respondents are spontaneous snackers,
therefore, meal-replacement options represent an untapped opportunity.
Broad distribution strategies that get snacks in the right places and that
fill an at-the-moment snacking occasion will be best poised for success.

18 SNACK ATTACK
 COUNTRIES INCLUDED IN THIS STUDY

EUROPE ASIA-PACIFIC
MARKET INTERNET PENETRATION MARKET INTERNET PENETRATION
Austria 80% Australia 89%
Belgium 81% China 40%
Bulgaria 51% Hong Kong 75%
Croatia 71% India 11%
Czech Republic 73% Indonesia 22%
Denmark 90% Japan 80%
Estonia 78% Malaysia 61%
Finland 89% New Zealand 88%
France 80% Philippines 32%
Germany 83% Singapore 75%
Greece 53% South Korea 83%
Hungary 65% Taiwan 75%
Ireland 77% Thailand 30%
Israel 70% Vietnam 34%
Italy 58%
Latvia 72% LATIN AMERICA
Lithuania 65% MARKET INTERNET PENETRATION
Netherlands 93% Argentina 66%
Norway 97% Brazil 46%
Poland 65% Chile 59%
Portugal 55% Colombia 60%
Romania 44% Mexico 37%
Russia 48% Peru 37%
Serbia 56% Venezuela 41%
Slovakia 79%
Slovenia 72% MIDDLE EAST / AFRICA
Spain 67% MARKET INTERNET PENETRATION
Sweden 93%
Egypt 36%
Switzerland 82%
Pakistan 15%
Turkey 46%
Saudi Arabia 49%
United Kingdom 84%
South Africa 17%
Ukraine 34%
United Arab 71%
Emirates

NORTH AMERICA
MARKET INTERNET PENETRATION
Canada 83%
United States 78%
Source: Internet World Stats, June 30, 2012

Copyright 2014 The Nielsen Company 19

 ABOUT THE NIELSEN GLOBAL SURVEY
The Nielsen Global Survey of Snacking was conducted between Feb.
17 and March 7, 2014, and polled more than 30,000 consumers in 60
countries throughout Asia-Pacific, Europe, Latin America, the Middle
East, Africa and North America. The sample has quotas based on age
and sex for each country based on its Internet users and is weighted
to be representative of Internet consumers. It has a margin of error of
0.6%. This Nielsen survey is based only on the behavior of respondents
with online access. Internet penetration rates vary by country. Nielsen
uses a minimum reporting standard of 60% Internet penetration or an
online population of 10 million for survey inclusion. The Nielsen Global
Survey, which includes the Global Consumer Confidence Index, was
established in 2005.

ABOUT NIELSEN
Nielsen N.V. (NYSE: NLSN) is a global information and measurement
company with leading market positions in marketing and consumer
information, television and other media measurement, online
intelligence and mobile measurement. Nielsen has a presence in
approximately 100 countries, with headquarters in New York, USA and
Diemen, the Netherlands.

For more information, visit www.nielsen.com.

Copyright 2014 The Nielsen Company. All rights reserved. Nielsen and
the Nielsen logo are trademarks or registered trademarks of CZT/ACN
Trademarks, L.L.C. Other product and service names are trademarks or
registered trademarks of their respective companies. 14/8119

20 SNACK ATTACK