According to Kantar Worldpanel’s latest report, OOH Barometer Q4 2023, there is clear evidence of real, organic growth in spending within the latest figures in the global OOH market. snacks and non-alcoholic drinks outside the home (OOH)driven by consumers making more trips.
As the price per unit has stabilized, the impact of inflation has reduced, and the price effect is no longer the primary catalyst for value increases. People have both the desire and the ability to increase their OOH consumption.
The total snack and non-alcoholic beverage market continues to grow steadily in both at-home and out-of-home (OOH), with a combined value increase of 11% in Q4 2023.
In addition, OOH year-on-year sales grew by 17%, surpassing home sales (7%); a trend that is seen in all markets except Spain, Portugal and Mexico. The most significant increases occurred in India, Brazil and the United Kingdom.
Focus on snacks
Spending on snacks (+9%) is growing faster than drinks (+5%) or meals (+7%), which is closely related to the growing popularity of impulse channels, where consumers often go for a quick bite to eat.
This reinforces the upward trend in consumption “on the go” which has been followed in previous quarters, and confirms the recovery of smaller, everyday OOH occasions.
The ice cream and salty snack categories grew strongest in the fourth quarter of 2023. This was a particularly notable feat for ice cream, considering it was the winter season in many markets.
OOH occasions are vital to the performance of the ice cream category, since they contribute 63% of the total expenditure. This is especially true in Asia and Latam: in India 97% of all value is generated OOH, and the figure is 80% in Mexico.
According to the report, the proportion is lowest in the United Kingdom (25%). OOH ice cream sales are soaring in almost all markets, with the exception of Portugal and Thailand. The positive news is that OOH growth has not come at the expense of at-home sales – spending is growing in that environment as well.
OOH value share continues to grow
The OOH sector’s contribution to total snack and beverage spending has grown steadily since 2021. Q4 2023 was no exception, with share increasing from 35% to 37%.
Only Spain and Portugal buck the trend, with greater spending on take-home consumption, the report indicates.
Additionally, impulse channels, bakeries and brick-and-mortar were the best-performing OOH channels in the fourth quarter. With a valuable participation for snacks and drinks compared to spending that increased by 5.3%, 4.9% and 4.3% respectively compared to the same quarter of the previous year.
The competition of modern trade and fast trade for meals
Changing the focus of snacks For meals purchased for immediate consumption, OOH once again exceeds home in all markets except Spain. With value growth of 15% globally compared to 7% for home.
The greatest growth is recorded in Brazil (+38%) and Portugal (+19%). Cafes, restaurants and modern commercial channels are responsible for this recovery.
Supermarkets and hypermarkets offering options such as hot food counters, sandwiches, sushi and salads increased their market share to 2.4%, closing in on quick service restaurants (QSRs), which have a share of 3.7%. Modern commerce is competing directly with this channel, the report concludes.
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