The latest Kantar figures on the global out-of-home (OOH) snacks and non-alcoholic drinks market indicate real, organic growth driven by consumers making more OOH trips. As inflation stabilizes, price effects are no longer the main catalyst for value increases, and consumers have both the desire and ability to increase their OOH consumption.
### Key Findings:
- Market Growth: The total market for snacks and non-alcoholic drinks continues to grow steadily across both in-home and OOH occasions, with a combined value increase of 11% in the fourth quarter of 2023.
- OOH Sales Outperform In-Home: Year-on-year OOH sales grew by 17%, outperforming in-home sales (7%).
- Rise in OOH Trips: Consumers increased the number of OOH trips by 16%, which is the main growth driver in almost all markets. This trend is especially strong in Brazil, France, and India.
- OOH Sector's Share: The OOH sector's contribution to total spend on snacks and drinks has consistently risen, increasing from 35% to 37% in Q4 2023.
- Spotlight on Snacks: Spend on snacking foods grew faster than drinks or meals, with a rise of 9%. The rising popularity of impulse channels reinforces the trend for 'on the go' consumption.
- Ice Cream and Salty Snacks: These categories saw the strongest growth in Q4 2023. Ice cream, in particular, saw growth despite the winter season in many markets.
- OOH Ice Cream Consumption: OOH occasions are vital to the ice cream category's performance, with 63% of total spend on ice cream attributed to OOH occasions. This proportion varies by region, with the highest in India (97%) and the lowest in the UK (25%).
- Modern Trade and QSR: Modern trade competes with quick service restaurants (QSR) for meals, with options such as hot food counters, sandwiches, and salads bringing their market share closer to QSR.
Overall, the report suggests that the OOH market for snacks and non-alcoholic drinks is seeing strong growth and recovery as inflation stabilizes and consumers increase their consumption in OOH occasions. This growth is particularly evident in snacking foods and ice cream categories, as well as in modern trade channels offering meals for immediate consumption.
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