Consumers Have 'Two Summers in One' Mentality as Memorial Day Approaches, Frito-Lay U.S. Snack Index Finds

Rhea-AI Summary

Frito-Lay's latest U.S. Snack Index reveals a significant shift in consumer behavior ahead of Memorial Day, with 80% of adults planning outdoor activities compared to 2020's stay-at-home trend. Salty snacks contribute significantly to retail growth, essential for summer gatherings. Key findings include a 14-point rise in in-person snack purchases and a 73% year-over-year increase in online snack sales. Consumers increasingly prefer new, bold flavors, especially among younger demographics. Frito-Lay anticipates eCommerce to double by 2025 as pandemic habits continue.

Positive

• Salty snacks are the No. 1 contributor to retail sales growth.
• 80% of consumers plan to engage in outdoor activities for Memorial Day.
• 73% year-over-year increase in online snack sales.
• In-person snack purchases rose by 14 points since 2020.
• Growing consumer preference for bold flavors, especially among Millennials and Gen Z.

Negative

• None.

PLANO, Texas, May 20, 2021 /PRNewswire/ -- Memorial Day kicks off an anticipated 'breakout summer' as consumers catch up on activities they missed out on last year, and however and wherever consumers are celebrating, snacks will be plentiful.

Salty snacks is the No. 1 food contributor to sales growth at retail and Frito-Lay is ready to meet the snacking demand.

Frito-Lay's latest U.S. Snack Index¹, a poll focused on consumers' snacking habits, found that eight in 10 (80 percent) indicated they have already made plans for Memorial Day, including many activities outside the house like attending a barbecue, spending time at the park, visiting the beach, traveling or playing outdoor sports. The results are a drastic difference to 2020 data where 82 percent of consumers noted they planned to stay at home alone for the holiday. Additionally, 50 percent of vaccinated adults said they plan to spend time with people outside of their household for Memorial Day.

Regardless of consumers' Memorial Day plans, the Snack Index found that snacks remain essential to summer. Eight in 10 cite summer snacks as a staple of the season (84 percent) or are essential to moments they enjoy (80 percent).

"Overall, the home continues to be central for snacking and gatherings; however, as the world reopens and vaccinations continue, consumers are venturing out again," said Mike Del Pozzo, chief customer officer, Frito-Lay North America. "With salty snacks being the No. 1 food contributor to sales growth at retail, Frito-Lay is ready to meet consumer snacking demand wherever they snack."

Additional market trends and U.S. Snack Index highlights show:
Both in-person leisure and everyday activities this summer are coming back – but some pandemic behaviors are here to stay.

• Consumers are returning to in-person shopping and dining at an accelerated pace – from drug stores, to convenience, to big-box retailers and quick-service restaurants.
• More people are getting snacks in-person at the grocery store (a 14-point increase from 2020). One-third (35 percent) are picking up snacks at convenience stores – an area that has seen a large uptick as consumers get out more.
• But, eCommerce is here to stay as consumers are now used to purchases at the push of a button. Frito-Lay anticipates eCommerce to double by 2025 and online snack sales are up approximately 73 percent year-over-year.

Consumers are trying both new snacks and bold flavors, but the classics remain a steady favorite.

• When choosing a summer snack, the most important thing to consumers is convenience or having tried-and-true favorites (89 percent).
• Chips are the top snack to stock up on for nearly all summer activities and two in three say they prefer to stick with the classic, traditional flavors this summer.
• However, Americans are getting more adventurous compared to last year, with people preferring new, spicy and bold flavors (25 percent in 2020 vs. 32 percent in 2021).
• This is exponentially higher among Millennials and Gen Z, with 45 percent saying they prefer new, spicy and bold flavors this summer.

Snacking habits and summer plans vary across the United States.

• More than a quarter of people in Los Angeles (29 percent), Baltimore/D.C. (27 percent) and Houston (26 percent) say they expect to snack more this summer compared to a typical, pre-pandemic summer.
• Summer activities differ across markets as the world begins to open up. Los Angeles shows strong interest in spending more time among other people at restaurants, sporting events and concerts, while Dallas shows interest in spending more time outdoors this summer (63 percent).

"The pandemic has caused companies to find creative ways to meet consumer snacking demand," said Elizabeth Avery, president & CEO, SNAC International, the global trade association representing the snack food industry. "We have seen drastic shifts in consumer preferences and habits – from the flavors and types of snacks consumers choose to how snacks are making it to their doorstep. As we approach Memorial Day and beyond, we can expect some behaviors learned in the pandemic to become a mainstay."

For more information, visit FritoLay.com/SnackIndex.

¹Survey Methodology
This poll was conducted on April 28, 2021 – April 30, 2021 among a national sample of 2,199 Adults. Interviews were conducted online and the data were weighted to approximate a target sample of Adults based on age, educational attainment, gender, race, and region. Results from the full survey have a margin of error of plus or minus 2 percentage points.

About Frito-Lay North America
Frito-Lay North America is the $18 billion convenient foods division of PepsiCo, Inc. (NASDAQ: PEP), which is headquartered in Purchase, N.Y. Learn more about Frito-Lay at the corporate website, https://www.fritolay.com/ and on Twitter http://www.twitter.com/fritolay.

About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $70 billion in net revenue in 2020, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker, Tropicana and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Convenient Foods and Beverages by Winning with Purpose. "Winning with Purpose" reflects our ambition to win sustainably in the marketplace and embed purpose into all aspects of our business strategy and brands. For more information, visit www.pepsico.com

 

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SOURCE Frito-Lay North America

FAQ

What does the Frito-Lay U.S. Snack Index reveal about consumer behavior for Memorial Day 2021?

The Snack Index shows 80% of consumers have plans for outdoor activities, a notable shift from 2020.

How have online snack sales changed according to Frito-Lay's Snack Index?

Online snack sales have increased by approximately 73% year-over-year.

What is the significance of salty snacks for Frito-Lay in 2021?

Salty snacks are the No. 1 food contributor to sales growth at retail.

What trends in snacking are expected in 2021 according to Frito-Lay?

Consumers are trying new, bold flavors, particularly among Millennials and Gen Z.

How are consumers purchasing snacks differently in 2021 compared to 2020?

There has been a 14-point increase in in-person snack purchases since last year.