Snacks and drinks market sees 38% share from out-of-home sales in Q1 2024

Salty snacks show fastest growth at 19%.

The out-of-home (OOH) sales accounted for 38% of the global snacks and non-alcoholic drinks market in the first quarter of 2024, up from 36% in Q1 2023 and 34% in 2022. This trend is nearing the pre-pandemic 60/40 split.

According to Kantar’s latest study, there is a 14% increase in OOH spending on snacks and drinks this quarter, outpacing the 3% growth in at-home consumption. India leads this surge, with OOH share climbing from 66% to 71% and spending rising by 44%.

OOH spending is outperforming take-home in India, Brazil, the UK, France, and Mainland China. In contrast, Spain, Portugal, and Thailand show slower growth due to established OOH habits.

Price hikes drove at-home value growth in 2023, but inflation's impact has lessened in 2024.

“As inflation has eased, we can clearly see that the value increase within OOH is natural and organic, driven by people buying small snacks and drinks more frequently to consume out and about,” the report noted.

 Consumers are making more frequent trips for OOH snacks and drinks, with a 9% increase in trips and a 3% rise in volume in Q1 2024. Price per unit rose by 2%, slowing from a 5% increase in Q1 2023.

The report also noted that the market is returning to pre-pandemic norms, though some changes in consumer behavior may be permanent. In-home snack and drink sales have decreased from 66.3% to 62.3% of market value over the past two years.

Coffee shops, bakeries, and modern trade formats are benefiting most from the recovery. Bars, cafes, and coffee shops saw a 1.2% increase in their share, highlighting the demand for accessible snacks and drinks.

OOH growth is fastest in snacking foods, with salty snacks and biscuits growing by 19% and 15%, respectively. Globally, Lay’s remains the top OOH snacking brand, whilst Kit Kat and Kinder have seen the biggest gains in Consumer Reach Points.  India and the UK are key drivers of OOH growth in salty snacks.

Moreover, traditional trade channels have seen the largest increase in spend, rising from 31% in Q1 2023 to 35% in Q1 2024. 

In India, traditional trade dominates, with six snack brands in the Brand Footprint Top 20, led by Bingo. Haldiram’s leads India’s savory snack market with a 40% penetration, reflecting ongoing innovation and consumer expansion.