Market Trends of Specialty Snacks Industry
Growing Demand for Convenient and Healthy Snacking
- Globally, the demand for convenience foods is growing faster due to changes in social and economic patterns, increased expenditure on food and beverage, awareness of healthy foods, changes in meal patterns and existing food habits, and an increased desire to taste new products. Owing to the numerous health benefits associated with snacks like nuts and seeds, they have become popular and healthy snacking options for consumers.
- Tree nuts, such as almonds, hazelnuts, cashew nuts, walnuts, and pistachios, as well as seeds, such as chia seeds and flaxseeds, are nutrient-dense foods with unique compositions. They have become a major addition to the daily diets of health-conscious consumers inclined toward sanctification.
- Moreover, the on-the-go snacking concept is linked to easy consumption and is relatively easier to handle, which savory snacks like popcorn and fortified chips offer. Also, popcorn, nuts and seeds, and extruded snacks can help prevent people from getting too hungry for junk foods, as these serve as ideal eatables between breaks or when people do not have time to cook.
- Regular consumption of nut and seed snacks reduces the risk of developing cardiovascular diseases or coronary heart diseases. There is high consumer demand for foods high in protein, such as almonds, which have nutritional attributes that are fast gaining momentum for weight management, which is the most dynamic trend currently. In addition, nuts are convenient, portable, and versatile. The high protein trend is likely to boost the position of nuts as a leading healthy snack choice.
- According to Western Cape Government, obesity stats in South Africa are concerning, as roughly 31% of men and 68% of women in the country are obese. Being overweight or obese can lead to various lifestyle diseases, including diabetes and heart disease. This is a big problem in adults and children, with more than 13% of South African children between the ages of 6-14 years considered overweight or obese. Therefore, consumers demand nuts and seeds and baked or roasted snacks that are comparatively less oily and healthier and could be equally beneficial in maintaining a healthy diet. This has resulted in companies creating products with the potential to increase nutritional intakes, sustain energy levels, and offer plenty of healthy options to the consumers while improving the quality of diet with the inclusion of fibrous ingredients like oats, dried fruits, berries, and corn, without compromising on taste.
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North America Dominates the Market
- Increasing health consciousness and changing lifestyles are the two factors contributing to the growth of the specialty snacks market in the United States, making North America one of the leading consumer markets for specialty snacks. In the past few years, the United States experienced a 50% increase in the number of households using snack cereal bars, and there has been a noticeable rise in demand for chewy granola snack bars.
- As consumers in the United States are concerned about the origin and quality of ingredients used in the preparation of food products, the popularity of organic snack bars has been increasing among health-conscious consumers. Most consumers looking for snack bars in the country are millennials who have developed a habit of specific breakfast options, including porridge pots, cereal bars, and other breakfast alternatives. This is due to hectic lifestyles, increased awareness, and the rising prevalence of several lifestyle conditions, including obesity, diabetes, atherosclerosis, and stroke among younger generations. For instance, according to a report published in 2022 by HRSA (NSCH) and the State of Obesity, the state with the greatest percentage of obese children and adolescents between the ages of 10 and 17 was Kentucky, among other states in the United States, during 2019-2020.
- Therefore, in this region, manufacturers focus on healthy product innovations with more convenient shopping options for consumers, such as making their products available online. For instance, in September 2021, Mother Earth's Snack launched the Direct-to-consumer healthy snack line, including its premium Q-9 SuperFood line of "better-for-you" snacks. It is a United States-based company. The company claims that the Q-9 SuperFood line has a primary component of 100% quinoa. This superfood contains all nine essential amino acids the body cannot produce and must therefore be obtained through diet. The product is available in four flavors Spinach Parmesan, Classic Ranch, Zesty Chili Lime, and White Cheddar. Both white chocolate with vanilla yogurt and dark Italian chocolate are offered as fillings for the company's Certified Organic, crispy Styx, and smaller Bites. Further, Mother Earth's Q-9 SuperFood snacks state that its products are certified organic, gluten-free, kosher, non-GMO, and vegetarian-friendly to satisfy a wide range of dietary concerns. Hence, organic and clean-label specialty snacks have a significant market in this region.
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