Furthermore, there are clear opportunities for CPGs that focus on value, quality, a portfolio that balances wellness-oriented and indulgent products, and sustainability, says Wyatt, who highlighted snack trends and opportunities during SNAXPO 2009.

IRI data show overall snack units down 1% last year, but dollar volume up 4%, due mainly to price increases.

Purchase frequency per buyer has been declining since 2005 and continued to decline through the second quarter of 2008. But healthier snacks have been less affected, and both healthy and indulgent snacks began to see a frequency upswing in last year's second half. Indulgent snacks saw a particularly notable uptick in frequency in Q4.

In addition, total snack household penetration began to reverse its downward trend as of Q2 2008, rising by 1.1 points in Q4 alone.

These positive trends appear to reflect both second-half declines in gas prices and consumers becoming better at managing their budgets in the recessionary economy, Wyatt tells Marketing Daily.

Indulgent snacks continue to be a significant opportunity. "People still want to treat themselves," says Wyatt, noting that indulgent snacks still account for three-quarters of the market and that 47% of consumers say they "eat what tastes good" rather than what's healthy.

At the same time, snack dynamics are being affected significantly both by economics and the continuing momentum of healthier products.

More than half (54.3%) of consumers report that they are buying snacks that are on sale rather than their favorite brands, and 47.5% report cutting back on snack spending, IRI data show. In addition, 35.5% are trying to make snacks last longer and 26.5% report snacking less frequently. Importantly, significant percentages indicate that their changed snacking behaviors will continue post-recession.

On the wellness front, the growth of healthier snacks is outpacing indulgent snacks, with the former showing a 3.9% dollar gain and 0.5% unit volume gain last year, and the latter showing 3.2% dollar growth and a 2.6% volume decline. Healthier snacks' dollar sales share rose one percentage point, to 33%. Yogurt, salty snacks, crackers and snack nuts saw dollar gains of 6% to 9%, versus 1% to 3% gains for cookies, chocolate candy, ice cream, pastries and novelties. And while most indulgent categories showed volume declines ranging from 2% to 4%, yogurt had a 1% gain.

Key opportunities for snack CPG's include:

• Delivering value. Nearly 90% of consumers cite "good value" as a key factor in snack selection, but "value" perceptions are complex. While 64% consider their favorite brands to be the key to value, 44% of this group considers these brands being on sale a value-enhancer. Meanwhile, 36% define value in terms of "any brand," with many stressing lowest available price as a value-enhancer. Attractive pricing plus rising quality pushed private-label snacks' dollar share up from 10.4% to 11% last year, and their volume share up from 15.5% to 16.3%, Wyatt points out.

• Addressing consumers' need to balance price and quality with nutritional goals. Nearly a third (31%) considers snacks an important part of a healthy eating plan throughout the day.

Consumers are responding to flavorful organic/natural snacks, and "healthy indulgence" categories like yogurt, string cheese, sugarless gum and popcorn showed exceptional dollar growth last year (9% to 15%).

Labeling and in-store promotions that call out healthier products and ingredients are increasingly important to consumers. "Educate to activate," advises Wyatt.

• Recognize that parents are the snack decision-makers, and that influencing them in their homes is critical as tight budgets spur pre-planning and discourage impulse buys. "You have to make sure that your products are on their shopping lists," Wyatt stresses.

• Tell consumers about sustainability initiatives. For instance, communicating eco-conscious packaging -- particularly in tandem with nutritional benefits -- enhances value perception and appeal.