Conagra, JM Smucker, Hershey and PepsiCo are among the packaged food manufacturers launching and rebranding smaller versions of beloved snacks, baked goods and beverages as “mini” and highlighting their size as a consumer benefit, including permissible indulgence, portion-control, on-the-go and sharable.
“Bites and minis have been absolutely booming for the last five years at a growth rate of about 21%” to reach $2.4 billion, Sean Connolly, CEO of Conagra Brands, told analysts gathered earlier this week by the Consumer Analysts Group of New York.
He explained the trend has broad appeal because it addresses a range of pain points for diverse consumers, from children needing an easy after school snack to consumers taking GLP-1 medications looking for smaller meal solutions.
An added benefit of the trend is that it could help brands recover from the backlash against ‘shrinkflation’ by allowing them to reposition smaller pack sizes and products originally created to cut costs and protect margins during the peak of inflation as a benefit for shoppers.
Bites offer ‘flexibility around occasion’
From the consumer perspective, demand for bites and minis is driven by a desire for convenience, ongoing interest in snacking and a need for products that support weight management and the rising use of GLP-1 medication, said Connolly.
He explained they are “perfect” for young families because they can be a quick snack that children can easily microwave in minutes or they can be combined to make a bigger meal that is “almost like an appetizer plate for sharing,” Connolly said.
The small portion sizes also align with the needs of the growing number of consumers taking GLP-1 medications who are eating less but still need nutrient dense options that taste good.
Within bites and minis, Connolly said he sees “attractive pockets of growth,” including global street food, chicken, breakfast, protein and seafood.
Conagra will meet this demand with new product launches in 2025, including Slim Jim Bites, said Connolly.
“America’s favorite meat stick brand and the fastest growing snack category is moving into bites. The resealable bag gives me portability and on-the-go if I am taking a trip with the kids this summer,” or if someone needs a snack at work - they can keep this in their desk drawer, he said.
Miniature versions of iconic and indulgent snacks can offer consumers who want a treat permission to enjoy a portion-controlled option, JM Smucker CEO Mark Smucker said at the CAGNY conference.
This year, JM Smucker will launch “mini” forms of several beloved Hostess Brands' products, including cupcakes.
PepsiCo also offers consumers mini cans of its beverages to “help consumers with convenience and portion control,” company CEO Ramon Laguarta noted at the conference.
A solution to shrinkflation complaints?
While some bite-size products are new, some are rebranded versions of smaller sized products that companies rolled out without consumer-friendly descriptors, like ‘mini,’ when across-the-board inflation began to drive up food prices during and following the pandemic.
The idea to leverage pack-price architecture to lower entry price points was originally celebrated as a thoughtful way to help cash-strapped consumers continue to afford their favorite products or treats without blowing their grocery budget.
But consumers quickly changed their tune after realizing the stealth downsizing resulted in products that are more expensive on a volume basis, if not by unit.
The backlash against so-called shrinkflation was fast and consumers were furious - with many taking to social media or writing their legislators to complain. Others recreated copycat versions of products at home or turned to private label - cutting into brands' dollar and volume sales.
Several CPG companies stand by this strategy, noting that consumers need a range of price points to fit different budgets.
For example, Hershey CEO Michele Buck stressed at the CAGNY conference the need to focus on “value pack-types” to ensure there is “overall affordability” and “the right entry level price point for people coming into the category.”
She noted more than 80% of Hershey’s everyday chocolate items are less than $4. Holding this price point may mean smaller pack sizes.
But, she added, there are other ways to create value for consumers and price cannot be the only lever pulled for long-term success.