Penetration Is As Crucial As Volume
Volume growth alone isn’t enough – buyer base matters more than ever
Value sales have grown well across almost all product categories, while buyers are also increasing their consumption in all areas.
Loose pack products have started to grow better than packaged products, especially in the street food category, which has seen rapid growth in sales, quantity, and purchase frequency. This emerging behaviour is primarily driven by convenience and lifestyle, rather than affordability. While loose pack formats do have a lower unit price than packaged formats, our data shows that average spend per occasion and price per volume are often higher. This indicates that a different value equation is in play.
Packaged products have also grown, particularly in RTD (ready-to-drink) beverages which is the largest category in the OOH sector. Its growth can be taken as a positive sign for the beverage market as a whole.
While freshly brewed beverages and RTD loose packs may have higher growth rates, the purchase frequency of these products has decreased – possibly in favour of RTD packaged products.
While sales in the snack category are on the increase, it is important to note that the number of people buying packaged snacks has decreased. Sales growth may not be sustainable without the most crucial factor: penetration. If the number of buyers decreases, even if the market can grow or remain stable this will not be beneficial in the long term as people will start choosing other products. This could lead to a market decline.
Finally, the RTE (ready-to-eat) food category has grown well, although its share of spend is still smaller than street food. This indicates that consumers are increasingly prioritising convenience in their meals.
