Market Trends of Brazil Snack Bar Industry
Hectic Lifestyle Propelling the Demand for Convenient Food and On-the-go Snacking
In Brazil, the demand for convenience foods is growing at a faster pace due to changes in social and economic patterns, as well as increased expenditure on food and beverage, awareness about healthy foods, changes in meal patterns and existing food habits, and the desire to taste new products. The on-the-go snacking trend is booming, especially among young people, hostellers, and bachelors who lead hectic lifestyles. According to the Brazilian Institute of Geography and Statistics, 98.27 million people were employed in Brazil in the second quarter of 2022. In addition, on-the-go snacking is closely linked with snack bars' easy handling and consumption of products. Consequently, the demand for snack bars increased because they are convenient to consume, aided by disposable packaging.
Due to busier schedules, consumers are allocating less time for traditional grocery shopping. Due to the same, they are also unable to take time for proper meals and, therefore, opt for on-the-go snack bars to satisfy their hunger. A significant portion of the population has access to easy on-the-go snacking options due to the increased penetration of these products in the market across the region. Since the transforming consumer habits promote smaller frequent meals, consumers tend to buy snack bars more often, which is expected to propel the market soon.
Supermarkets/Hypermarkets Driving the Snack Bar Sales
Snack bar sales through supermarkets/hypermarkets and a variety of stores are growing at a faster pace, owing to the health and fitness trend. Consumers tend to shop for smaller items at local retail stores, while they prefer to shop at supermarkets for bulk discounts. Snack bars and other related items are often displayed at the entrance, end of the aisle shows, in island bins, at the checkout, and in the designated snack food aisles, which inevitably draw consumers' attention and induce impulsive buying behavior before they check out from the stores. This factor has boosted the demand for snack bars in supermarkets and hypermarkets.
Supermarkets/hypermarkets provide a super-sized shopping experience, with suitable displays and assortments of indulgent snacking products. According to data published by Associação Brasileira de Supermercados in 2021, supermarkets especially generated over 55% of retail food sales in Brazil, making them the most popular venue to purchase food. In 2020, Brazil's food retail sector generated BRL 554 billion in revenue. Carrefour and Assai Atacado were Brazil's most well-liked grocery chains under the supermarket category. Prominent online channels, such as Amazon, have reportedly witnessed a surge in the sales of functional snack bars, contributed by packaging design, label claims, and a repetitive pattern of snack consumption.
