Key trends propelling the growth of the snack section

Key trends propelling the growth of the snack section

The snack market is expanding swiftly, and producers are changing their products to satisfy changing consumer needs. According to market analyst Circana, sales of salty snacks increased by almost 16% in 2022 to reach $28 billion. Mintel projects that sales of these snacks will reach $38 billion by 2028.

David Walsh, vice president of membership and communications for trade association SNAC International, outlined the key drivers propelling the snack category’s growth at Pack Expo 2023, which took place in Las Vegas on September.

According to Mr. Walsh, 49% of customers snack more than three times a day, an increase of 8% over the previous two years. The accelerating trend is being driven by younger generations, such as Generation Z and millennials.

According to Mr. Walsh, 92% of them swap at least one meal per week for a snack, meaning that they are most likely to replace a meal with a snack. “And as their purchasing power rises, more money is flowing into the snack category.”The late-night period of the day is full of opportunities, he continued.

“The perfect storm is created at night when cravings for high-calorie foods peak along with overall appetite,” he said. “Big businesses and investors are aware of this, and they believe that snacks designed with nighttime snackers in mind will come ‘when, not if.

As a source of comfort and familiarity, food became more popular during the pandemic. However, the strains of inflation that followed have changed how they buy snacks. In order to conserve money, 20% of consumers are purchasing fewer snacks for their household, an increase of 7% over the previous two years, while 25% of customers are currently looking to buy what is on sale, up 3% from two years ago.

Using tastes to set things apart

Spicy options are seeing significant unit growth in a number of food categories when it comes to flavor. According to Mr. Walsh, customers are drawn to flavors that have more subtlety and spice.

“To name a few examples, it’s not just heat; it’s a variety of peppers like ghost pepper, habanero, hints of lime, chili, chipotle, adobo, and hot paired with cheese.”

Sweet flavors like berries, cinnamon, and chocolate nuts are popular right now, and acidic snack options like lime and tamarind are expanding.

Snacks are increasingly featuring flavors from throughout the world, such as Middle Eastern, Asian, and Latin American cuisine. Mr. Walsh stressed that this expanding influence on a global scale is here to stay.

“These international flavors are creating an opportunity for snack makers to deliver more ‘foodie’ and elevated experiences while consumers are continuing to stay at home,” he said, adding that consumers are trying to stretch their money a little bit farther.

Snacking is still mostly done for indulgence, even if the market for better-for-you (BFY) snacks has grown somewhat. According to Mintel, 54% of customers seek a snack as a treat, but only 22% are driven by health concerns.

Walsh noted that whenever customers’ purchasing power grows, they will choose more BFY snacks, suggesting that inflation may play a role in this gap.

“Indulgence is here to stay; sometimes all people want is their favorite snack,” the speaker stated. “But it’s clear that better-for-you is still very much alive and well.”

Prebiotics, probiotics, antioxidants, and a serving of fruits or vegetables are all popular features of BFY snacks. Along with plant-based protein, allergen-free and allergen-friendly snacks saw significant increases in dollars (25%) and units (8.7%) in 2022. Protein-rich snacks keep doing incredibly well, and the number of snacks with 15 or more grams of protein is rising.

According to Mr. Walsh, there exists a segment of the consumer base that is willing to pay a premium for healthy snacks, indicating that they are making a financial commitment to the brand.

According to Mr. Walsh, consumers—especially younger ones—are also looking for businesses that align with their personal beliefs, such as social responsibility and environmental awareness. But he pointed out that snack manufacturers ought to focus on a certain message.

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He said, “Innova reports that 55% of consumers claim there are too many environmental labels, making it difficult for them to know what to look for. “Food producers ought to choose a cause that is meaningful to them and aligns with their business in order to influence consumers to follow that path.”Unit sales, for instance, are subject to claims about fair trade, animal welfare, and the use of recycled materials.