MARKET WATCH

America’s Taste for both Healthy & Unhealthy Snack Foods is a Boom for Food Companies

On Tuesday, The Wall Street Journal reported on America’s hunger for snack foods is fueling growth for packaged-food companies.

By Mark Zuleger-Thyss

Cookie and candy giants are drooling over America’s craving for quick snack foods on the go. Nearly half of U.S. consumers eat three or more snacks daily, translating into an 8% growth in this sector over the past two years.

According to Circana Group, a market research firm, snack sales rose to $181 billion last year, up 11% from the year prior.

Big players like Hershey and Mondelez International are enjoying robust sales of salty foods, popcorn, Oreos cookies, and Ritz crackers. Hershey’s sales grew 30% between 2019 and 2022, outpacing other major food companies.

“Snacking is where the consumer is going,” said Dan O’Leary, chief growth officer at Hostess, which has expanded its lineup of sweet snacks.

But What about Natural Foods Snacks?

According to the Organic Snack Food Market Global Research Report 2023, the industry globally is thriving.

Key Industry Trends

As consumers have become more health-conscious and begun eating organic and all-natural foods, demand for organic snack foods has increased. Many industry products have also benefited from the rising demand for gluten-free and low-sugar foods.

Organic snacks typically cost more than their nonorganic equivalents because organic crops are more expensive. However, with high input costs, it is difficult for industry companies to compete with nonorganic snacks based on price.

With relatively high prices, demand for organic snacks is typically highest among consumers with higher disposable income. However, demand for organic snacks will likely increase when disposable income levels rise.

Market Overview 

The global organic snacks market size reached US$ 11 Billion in 2022.

The market is expected to reach US$ 20.5 Billion by 2028, exhibiting a growth rate (CAGR) of 10.2% during 2023-2028. 

Organic snacks refer to food products produced organically using certified organic ingredients while eliminating the employment of synthetic substances, such as artificial colors, fertilizers, pesticides, and genetically modified organisms (GMOs).

Compared to traditional snacks, organic snacks are natural, healthier, and grown through organic farming that supports environmental protection. 

Global Market Segment Defined

The global organic snack foods market is segmented based on chocolate, vanilla, and strawberry flavors. Hence, the global organic snack food market is expected to grow significantly over the forecast period.

Snacks are a part of food that is smaller than a regular meal that is generally consumed during meals. Snacks are found in various forms, such as packaged and processed foods. Organic snacks are non-GMO and contain organic ingredients in the food products.

Organic snacks are made from USDA-certified organic and non-GMO ingredients that are gluten-free and healthy for snacking. Organic snack foods contain nutritious and nourishing ingredients such as proteins, vitamins, and minerals. 

Driving Factors 

The factors driving the organic snack foods market are the increasing health consciousness and the importance of consumption of organic foods. People are keen to avoid the harmful side effects of conventional snacks, such as increasing obesity, increasing calorie content of the body, and less nutritional benefits.

Millennials and kids are the primary consumers of organic snack foods globally. However, the demand for organic snacks is increasing rapidly because of the presence of natural ingredients.

Increasing demand for healthy snacks due to growing health awareness is expected to drive the organic snack market over the forecast period.

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