As government is the governing body in each country and their intervention is always there when companies are doing business, the objective of these regulations are to make the businesses in compliance with the country law and protect consumers.
As consumers lifestyle is changed and outside eating and ready food item consumption has become popular culture and people are now consuming a lot of fast food and snacks and the huge consumption of these snacks resulted in critical health problems such as obesity, hearth diseases, cholesterol problems and others. government is imposing different restriction on the producer of crisps and snacks through different initiatives one of these initiative is campaigns is 5 A DAY or Health School Status to force the producers to launch healthier alternatives because in school children consume a lot of snacks and this result in obesity and other health concerns. Other restriction is on advertisement to children which has direct effect on children’s preferences and this restriction has direct negative impact on the demand for chips and snacks.
Food labelling is another issue which has its effect on consumer choices. Food item labelling raises awareness of consumers about the nutrition contents of food items and this makes consumers more selective in their choices toward healthy eating.
Crisps and Snacks - UK - May 2007 Broader Market Environment Mintel Database
Economical Environment:
As economics is all about scarcity of resources and in economic environment of snack food businesses in UK face rise in cost of resources of business. increase in raw material price put a lot of pressure on the companies’ profit margins and these escalation of prices is a major challenge the producers of crisps as well as it affect the consumer confidence level. However the snacks and chips market has shown stable growth in last couple of years because of their nature which comes as indulgent , low