Market Trends of North America Snack Food Industry
This section covers the major market trends shaping the North America Snack Food Market according to our research experts:
Increase in Demand for Convenient and Healthy on-the-go Snacking
The increasing consumer demand for healthy breakfast alternatives with low-fat and low-sugar in products is increasing the demand and driving the market for healthy snacks such as granola bars in the region. The high snack consumption in the country, coupled with the increasing demand for on-the-go snack options, is majorly driving market growth. Thus, manufacturers are continuously launching innovative new flavors and expanding into the United States market to meet the rising demands for all the variants of snack bars. For instance, in February 2020, Riverside Natural Foods launched its GOOD TO GO soft-baked keto-friendly snack bars in the United States. It is available in cocoa coconut, vanilla almond, raspberry lemon, and cinnamon pecan varieties.
Moreover, an increased inclination towards healthy snack products such as nuts, fruit snacks, snack bars, and other confectionery products is due to the growing prevalence of various lifestyle disorders such as atherosclerosis, stroke, diabetes, and obesity. According to data based on the U.S. Census data and Simmons National Consumer Survey (NHCS), 24.1 million Americans used 10 or more packages of nutritional snacks in 2020. Companies are also coming up with innovative flavors and health-boosting ingredients to attract consumers. For instance, in 2020, Diane's Kitchen LLC, a consumer packaged food company, launched Daily Crunch Snacks, a unique line of sprouted nuts. Daily Crunch is available in three product varieties, namely, Just Sprouted Almonds, Coffee-Soaked Sprouted Almonds, and a Nut-Berry Medley.
Supermarkets/Hypermarkets Hold a Prominent Share in the Market
Supermarkets/hypermarkets provide a customer-friendly shopping environment where the customers can buy the products of their choice by choosing appropriate products from all the product offerings made by multiple brands, as per their requirements. These product offerings include snacks ranging from frozen potato fries, wedges, pizzas, croissants, fish cakes, squid rings, frozen momos, yogurt, savory snacks, and many more. Owing to a huge retail space catering to a wide variety of preferences, the supermarkets/ hypermarkets segment is a dominant channel, in terms of sales of snacks, across North America. Factors, such as business expansion, and the increasing number of hypermarkets and supermarkets, are expected to add to the sales of these retail formats and significantly contribute to the snack market's growth. Different supermarket and hypermarket chains like Walmart, Kroger, Tesco, and many others, offer different loyalty benefits to retain consumers. For instance, Kroger Co. offers a family loyalty program to its customers. By using the Shopper's card, the customer can earn one fuel point on every USD 1 spent in the supermarket.
