Create something tasty and sell it….
If only things were that easy. But making it in the global snack industry is one of the toughest gigs going – it’s an enormous, competitive market, and getting on the shelves of a supermarket is nigh on impossible without the right contacts.
But with the savoury snack market in the UK worth £3.2 billion and consumer spending on sweet confectionery totalling £13.6 billion in the last decade, this is one lucrative market if you do manage to crack it.
According to the folks over and Mintel and as reported in The Grocer “In recent years the snacking market has boomed, with 66% of adults snacking at least once a day [Mintel Consumer Snacking UK: March 2019] and an incredible 37% of 25 to 34-year-olds saying they snack instead of having a proper meal at least once a week.”
That is one hungry customer base, but even the most successful companies start with just an idea, some ingredients and that very first bite. If you’re wondering what the essential components are of a start-up snack business, then you’ve come to the right place; here are 5 tips for starting a successful snack business.
HEALTH CONSCIOUS CONSUMERS
As The Grocer also reports, “we’ve also seen a real shift in the types of snacks consumers are looking for, with an explosion of healthy alternatives being launched”. They add that almost half of consumers now view snacks as a chance to boost their nutritional intake rather than being a treat or stop-gap between lunch and dinner.
For so many, it’s just not about pop tarts, crisps and pork scratchings anymore. Things like “Kale chips, rice cakes, protein bars and energy balls” are becoming popular with increasingly health-conscious consumers, with this trend only set to get larger and more consuming as the decade continues.
What we’re saying is that you need to actively consider how you’re going to appeal to this mindful snacking market as younger, spendthrift consumers (you know, the ones you want to snag) increasingly prioritise health and wellness.
Consider innovative zero fat, low sodium and sugar free versions of popular snacks as the single most burgeoning subset of the snack market right now.
SAMPLE THE COMPETITION
Yes, we’re imploring you to go out and eat a hefty quantity of snacks. Permission granted, indeed! Knowledge is power, as they say, and to expand yours in the name of market research, you’re going to need to understand what makes your competition tick. And, of course, how your competition tastes.
We say that, and although taste is of course important, it’s also essential that you approach this sampling of the competition with a view to investigating every facet of the experience and product they offer. Consider the price point, the buying experience, the packaging, the branding and so much more, all with the critical eye of a consumer.
Read: 5 IDEAL tips on starting a home based baking business
GOOD BRANDING GOES A LONG WAY
Speaking of which, we should mention that the packaging from snacking causes a lot of waste. As such, it’s important to minimise the effect that snacking on your product has on the environment – something that is growing in importance to the ever eco-conscious consumer.
In 2019, the Guardian reported that the country’s ‘lunch on the go’ culture generated 11 billion items of packaging waste a year, and although the pandemic has seen us eating our lunches at home more often, the snack part of that meal often remains, with crisps, chocolate and other lunchtime favourites requiring packaging which ultimately ends up in landfill.
That is unless you prioritise sustainable packaging as a consumer and, in the future, as a snack business owner.
Our friends from foil pouch manufacturer LogoPack, who develop and create sustainable pouch packaging using biodegradable and 100% recyclable materials, tell us that it’s all about “sustainable packaging that entails the use of recyclable or compostable materials to produce packaging products’’.
This minimises the exploitation of raw materials and helps to curb waste pollution, and as a business owner, using such packaging also helps you set yourself apart from the crowd by displaying your green credentials in the most accessible, recognisable way. A clean, green brand image and less impact on the environment? What’s not to love!
FOCUS GROUPS: LEARN WHAT THE CONSUMER WANTS
In their in depth investigation into the snack industry last year, Food Bev suggest that “Increasing preferences for foods that fulfil health needs, environmental concerns, convenience and a desire for uniqueness, are just a handful of the factors set to drive growth in the 2020 snacking industry.”
Yep, we realise that we’re just repeating what we’ve already recommended earlier in the article. But more than that, we’re calling attention to how Food Bev came to these conclusions about the industry; focus groups.
A focus group may be a fairly traditional form of market research, but it’s still widely used, particularly in the food industry. Bringing individuals from your target audience together in one location, you’ll have the opportunity to present products, ideas, concepts and designs and get valuable feedback on them. As such, this old fashioned way of gathering intelligence and opinion on your products shouldn’t be overlooked.
In particular, focus groups are extremely effective for niche food businesses who are targeting a relatively small audience. When your target demographic is small, the views and opinions of respondents tend to be narrower. For start up food businesses and luxury food brands alike, focus groups offer an effective way to engage with individuals from your target audience on a one-to-one basis and obtain feedback directly from potential customers.
CONSIDER CROWDFUNDING
Once you’ve generated a buzz around your brand via a mix of a consistent, delicious offering, spoken word and social media marketing, consider crowdfunding to generate the finance needed for your transition to a fully fledged business proposition.
Kickstarter and Go Fund Me are just two of the many platforms now available; the one constant is the fact that you need to be militant about your marketing in the period running up to launching your enterprise, and during it, keeping your snack business high on the trending lists and on the lips of influential food influencers, bloggers and reviewers.