Growth of 'healthy' snacks outpacing that of the overall food, beverage market

"Healthy-ingredient" snacks offer the perfect convergence of many important modern food industry trends — as a result, the segment is thriving. The market’s compound annual growth rate (CAGR) of 4.7 percent has outpaced overall food and beverage sales growth, according to the Packaged Facts division of Rockville, Md.-based MarketResearch.com.

The company published these findings and more in its new "Healthy-Ingredient Snacks in the U.S., 2nd Edition" report, which examines the market for meat snacks, snack bars, snack nuts, fruit snacks and trail mixes.

The past two years, in particular, have seen much stronger market growth in the segment, thanks to double-digit gains in the meat snack and trail mix categories in 2014, as well as stronger growth in snack bars in 2015, Packaged Facts said. The company projects that the healthy-ingredient snack segment will continue enjoying steady growth in sales. A CAGR of 5.7 percent is expected between 2016 and 2020.

A variety of industry trends are responsible for this bullish outlook, including:

• A growing preference among snackers for products that provide more healthful options than typical snacks.
• Free-from as a top driving trend, with allergen- and gluten-free claims the most popular.
• High demand for protein, bite-sized snacks and innovative flavors.
• An increase in the percentage of adults who believe they snack more healthfully.

In addition, retailers are increasingly marketing healthful private brand snacks. Many different retail chains not only are developing and introducing new products to the segment, but also are starting to spend more money and effort advertising those products, Packaged Facts noted.

In the convenience channel, the most notable new brand is 7-Eleven’s 7-Select Go!Smart brand and its yogurt-drizzled snack bars, the company said. In the natural channel, meanwhile, Trader Joe’s does a significant number of in-store ads and out-of-category displays for its many distinctive store brand healthy-ingredient snacks. And supermarket chain ALDI introduced the Simply Nature line of all-natural and organic foods at the beginning of 2014, and continues to support and advertise the brand as a permanent addition to its private brand portfolio. The brand includes fruit and nut bars, energy bars, and fruit snacks as part of its offerings.

Beyond healthy-ingredient snack sales, many retailers are starting to highlight healthful snacking in general by providing more information and easier access to better-for-you snacks within the store, Packaged Facts stated. For example, in 2015, supermarket chain Wegmans started putting displays in its stores that detail how to make quick and healthful at-home snacks using fruit and vegetables and other healthful foods — and also began placing displays in prepared foods areas that point out healthful store brand snack options.

To learn more or to purchase the report, visit www.packagedfacts.com/Healthy-Ingredient-Snacks-10121548.