According to Kantar's latest research, consumers globally have spent 11 percent more on snacks and non-alcoholic drinks to enjoy at home in the third quarter (Q3) of 2023 compared to a year prior.
This is a positive indication of a continued slow recovery trend following the drop from 202. Kanter identified that there was significant growth, which came down to more than simply inflationary prices, which include both out-of-home (OOH) and in-home categories, which have grown for the tenth quarter in a row with a nine percent year-on-year increase.
However, OOH value sales have increased significantly faster than in-home spending in 2023, with an 11 percent rise, equalling 6.8 billion dollars. This surpasses the in-home value sales of eight percent of 6.6 billion dollars.
This is particularly true in Brazil, where growth reached a staggering 41 percent in Q3 versus eight percent for in-home. In the UK, there is a 21 percent boost in OOH value versus 11 percent for in-home purchases. Only Spain and Mexico had the values swinging in the direction of in-home spending.
Exploring the landscape of OOH snacks and drinks growth reveals some encouraging trends. In the UK, the impact of inflation, known as the 'price effect,' contributes only one-third to the overall 21 percent increase in spending. Specifically, seven percent of the total rise can be attributed to inflation, signalling that the surge in value is primarily associated with a genuine and organic expansion in the frequency of consumer outings.
In Brazil, where OOH experienced a remarkable 41 percent growth in Q3 of 2023 compared to the same period in 2022, price hikes constitute just 45 percent of this substantial increase. The predominant driver behind this growth is the resurgence in the number of trips taken by consumers and the number of units purchased per trip, highlighting the significance of increased consumer activity in fueling this positive trend.
When comparing snacks and beverages, there was a 15 percent rise in snacking food versus a 10 percent rise in non-alcoholic drinks. Biscuits were the most significant drivers of this.
OOH and in-home spending increases reflect a gradual return to spending resembling pre-pandemic times. It's particularly promising that a significant portion of this spending is through organic growth rather than inflation rates, showing that consumers spend more often on snacking and beverage products for themselves both in and out of the home.
