The global snacking industry continues to expand as consumers seek quick and easy ways to satisfy their hunger between meals, but food companies need to keep up with changing preferences to be able to innovate and capture market share, according to a new report.
Global consumer intelligence company NielsenIQ said the snacking industry has undergone remarkable growth in recent years, driven by changing consumer lifestyles and preferences. Today, snacking accounts for more than US$135 billion annually, with remarkable growth occurring in the omnichannel space.
“This growth is fueled by several factors, including increased urbanization, busy lifestyles, and the rising demand for convenient and on-the-go food options,” the report added.
The snacking landscape is being reshaped by shifting consumer preferences, health and wellness trends, and technological advancements, making it essential for industry players to keep a finger on the pulse of these changes.
Besides convenience, health and wellness trends are playing a significant role in shaping the snacking landscape, said the report. Modern consumers are becoming increasingly health-conscious, opting for snacks that offer nutritional benefits without compromising on taste.
Data show that sales of healthy snacks have surged, with the segment expected to grow at a faster rate than traditional snacks, said the report.
“This trend is evident in the surge of plant-based snacks, which cater to vegan, vegetarian, and flexitarian diets. Products rich in protein, fiber, and natural ingredients are also gaining traction, as they align with the health goals of a diverse consumer base,” NielsenIQ said.
Moreover, the emphasis on clean labels and transparency is driving the healthy snacking trend. Consumers are increasingly scrutinizing ingredient lists, favoring products that are free from artificial additives, preservatives, and excessive sugar. This demand for transparency has led to the rise of snacks fortified with functional ingredients, such as probiotics for gut health, antioxidants for immune support, and adaptogens for stress relief.
The report advises food firms to innovate toward meeting these healthy snacking expectations, launching products that not only satisfy cravings but also contribute to overall well-being.
“By embracing these health-centric trends, brands can appeal to the modern snackers’ desire for both convenience and nutrition, securing a competitive edge in the market.”
Another notable trend is rising consumer preference for sustainability and ethical consumption. As environmental awareness increases, consumers are actively seeking snacks that align with their values, prioritizing products that are sustainably sourced, packaged, and produced, said NielsenIQ.
“Brands that emphasize their commitment to eco-friendly practices, from reducing carbon footprints to using recyclable or biodegradable packaging, are gaining favor among consumers who wish to make conscientious purchasing decisions,” it observed.
Snack manufacturers are urged to innovate and adopt sustainable practices across their supply chains to meet consumer expectations and stay competitive.
Additionally, ethical consumption is not just about environmental impact but also about social responsibility, the report further said. Consumers are increasingly aware of the ethical implications of their purchases and prefer brands that support fair labor practices and contribute positively to communities. Transparency in sourcing, ensuring fair wages for workers, and engaging in community development projects are becoming essential components of a brand’s identity.
The report said snack companies need to highlight their ethical initiatives, such as sourcing ingredients from cooperatives that ensure fair pay or investing in local communities, to build stronger connections with their customers.
