Global snack demand grows
posted on 27 October, 2016 by Michael Green
Snacking is big business around the globe, and the market is growing bigger every year. Several key trends, including demand for healthier snack options, are helping to drive growth for many vendors.
The snack segment grew about 2.5 per cent overall in 2015, according to market research firm Spins, with savory snacks experiencing some of the strongest growth. Year-on-year growth of the various segments included:
- jerky and meat snacks – 26.4 per cent
- energy bars – 13 per cent
- salsa and dips – 9.5 per cent
- nuts, seeds, dried fruit and vegetables – 8.3 per cent
Around the globe, snack manufacturers of all kinds saw steady growth throughout Q2, offering further proof that consumers are craving a wide range of snacking options. For example, Snyder’s-Lance, which recently acquired Diamond Foods, saw net revenue from branded products increase 43.6 per cent year-on-year. And Amplify Snack Brands, which owns SkinnyPop, reported a 26.4 per cent year-on-year increase.
Meanwhile, confectionery companies like Hershey have started to move into the snack category to capitalise on its growing popularity. The company acquired snack brand barkTHINS in early 2016, and will launch Reeses Pieces Peanut Butter Cups, Krave Meat Bars and an additional “snackfection” item later this year.
One of the driving trends in the snack category is a demand for healthier options. Natural-positioned snacks have grown at a rate of up to 16 per cent since last year. And manufacturers are eager to meet the growing demand. For example, Amplify’s strong year-on-year growth was driven primarily by sales of the SkinnyPop popcorn brand, which grew 30 per cent. The company also recently acquired Tyrrells, whose products include “better-for-you” vegetable crisps, premium popcorn, and organic crisps and snacks.
Meanwhile, innovative approaches for packaging and even delivery of healthy snacks continue to catch consumers’ eyes. One example is a U.S. snack delivery service called Love With Food, which ships “curated, hard-to-find healthier snack selections” directly to consumers in 25 countries.
As the snacking segment continues to experience success, the growth of four key trends is helping to drive the industry forward. Read our new whitepaper, “How to stay ahead of the latest snack trends with innovative food processing and packaging technology,” to learn more.