April 24, 2024
Snack Products

Snack Products : An Ever Expanding Segment

The snack food industry has seen tremendous growth over the past few decades and has become a staple of people’s daily lives. From casually enjoying a bag of chips at home to grabbing a protein bar on the go, snacks have firmly cemented their place in consumers’ routines.

The Rise of Snacking

Our fast paced lifestyles have contributed significantly to the rise of snacking between main meals. People simply have less time than before to sit down for three elaborate meals each day. Snacking allows them to consume calories in small portions throughout the day in a convenient manner. Studies show that people now spend more time snacking than actually eating meals. Another factor is the increased health consciousness – snacks allow portion control and intake of nutrients in between meals.

Variety of Products

To cater to the diverse tastes and needs of customers, snack food companies offer an incredible variety of products. Salty snacks such as potato chips, pretzels and nuts continue to be top sellers driven by their addictive flavors and crisp textures. However, the industry is going beyond traditional snacks and innovating constantly. Some examples include protein bars to fulfill fitness goals, veggie straws for health conscious customers, snack boxes or grab and go packs for convenience. There is truly a snack for every occasion, time of the day and consumer profile.

Healthier Options Dominate Growth

While indulgent junk foods will always have their place, current trends show that healthier Snack Products are dominating category growth. Customers want to satisfy their cravings without feeling guilty about it. As a result, products with claims of being nutrient-dense, high in proteins or fibers, lower in sugars and made from natural ingredients are gaining immense popularity. Granola bars, roasted chickpeas, whole grain crisps and jerky snacks are some categories that are outpacing others driven by health halo. Companies are reformulating existing recipes or coming up with new innovations to capitalize on this demand.

Rise of Private Labels

Alongside the growth of branded snacks, private label or store brand snacks have also seen tremendous success in recent years. Major retailers realized that people trust the quality and affordability of their in-house labels. Private label snacks, priced attractively, have enabled customers to indulge in their favorites without worrying about costs. This has given national brands tough competition on prices while still delivering on taste and variety. Today, private label snacks command around 20% of the market and their sophistication matches any leading brand.

E-Commerce Opens New Avenues

The boom in e-commerce has opened new opportunities for snack makers to reach audiences. Online retail behemoths like Amazon have dedicated snack categories that give visibility to a diverse set of brands. Customers can search for flavors from across geographies to satiate their cravings from the comfort of their homes. E-commerce has also enabled small artisanal brands to achieve national footprints. Companies too are allocating separate funds for digital marketing, exclusive online launches and curated bundles that cater to online buyers’ habits.

Globalization of Snacking Preferences

With globalization and fusion of cultures, international snacks are gaining huge popularity. Japanese wasabi peas, Korean rice cakes, Middle Eastern biscuits – unique global flavors are exciting consumers worldwide. International travel and exposure through media have sparked curiosity about snacks from other regions. This trend gives big opportunities for artisanal brands to scale up. It is also inspiring large companies to develop worldwide product portfolios through acquisitions and partnerships for a truly globalized snacking experience.

Factors like our busy lifestyles, health trends, e-commerce boom and a fusion of cultures are reshaping the competitive dynamics and innovation potential in this high growth space. With consumers’ snacking needs expected to only intensify further, companies will have to stay agile in outpacing changes through a variety of tasty, values-driven products.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it