Healthy Snacks Market (2022-2029)

The growing health consciousness among consumers, the rising demand for functional/healthy foods, and the increasing popularity of convenience foods & on-the-go snacking are the key factors driving the growth of the healthy snacks market.

Furthermore, the emerging economies in Latin America, Asia, and the Middle East & Africa and the increasing sales of products through online channels are expected to provide significant opportunities for the players operating in this market.

The COVID-19 outbreak caused by the SARS-CoV-2 virus created a severe public health emergency globally, with its quick spread across more than 150 countries. The WHO declared it a health emergency, and several countries announced complete nationwide, statewide, or citywide lockdowns, halting all travel, transport, manufacturing, and non-essential trade, significantly impacting many industries globally. However, the pandemic positively impacted the healthy snacks market.

The consumption of healthy snacks accelerated during the pandemic as the national lockdowns forced people to stay home. Furthermore, during the lockdowns, there was an increase in the sales of healthy snack food products due to their longer shelf life. Additionally, e-commerce platforms selling these products have witnessed significant traction in recent years. The increasing accessibility to these products drives the demand for healthy snack products. Furthermore, the preference for more healthy snacking options has increased among consumers. Hence, the pandemic positively influenced the demand for cereal & granola bars, nuts & seeds snacks, biscuits & cookies, and trail mix snacks, among others.

The COVID-19 pandemic moderately affected the demand for healthy snack food due to disruptions in supply chains. However, these effects were temporary and gradually reduced without substantially affecting the healthy snacks market.

Consumer demand for convenience foods has grown substantially over the past several decades. Consumers are more inclined toward convenience food products, such as biscuits & cookies, meat snacks, and beverages, due to their instant nature, eliminating the preparation and handling time of the food. The demand for dinner-time solutions by present-day consumers is increasing rapidly as the meal consumption behavior of consumers is shifting drastically. There is an increase in the number of individuals who lack the time and skill to prepare food in their homes, resulting in many consumers adopting ready-to-eat food products. In addition, the convenience trend in the U.S. and China is not a short-term phenomenon but a dietary mainstay. Increasing urbanization will likely help the convenience movement gain further traction.

More than half of the world’s population lives in urban areas, and virtually all the countries worldwide are becoming increasingly urbanized. According to the United Nations World Urbanization Report, the urban population of the world has grown rapidly from 439,498,772 in 2015 to 471,031,528 in 2019, which shows that almost 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050. As a result, urban consumers are gaining exposure to a much wider choice and better food availability than those living in rural areas. Also, this urbanization trend contributes significantly towards improved living standards and rising incomes, which influences the affordability of convenience foods & on-the-go snacking to a greater extent.

Furthermore, with the increasing urbanization, the demand for convenience food products is also increasing rapidly, mainly due to factors such as changing lifestyles, a rising number of nuclear families, an increasing working proportion, and the growing number of individuals with less time for food preparation. These factors result in the accelerated demand for healthy snacks due to their benefits, such as easy availability and long shelf life.

In addition, on-the-go snacking provides quick nutrition and the feeling of satiety in a busy schedule. According to the ‘State of Snacking’ report by Mondelēz International, in 2019, approximately 59% of adults worldwide reportedly prefer to eat more small meals throughout the day as opposed to a few longer ones, with younger consumers leaning into snacks over meals accounting to 7 in 10 among millennials (70%).

Consumers also perceive snacks as part of healthy diets, attributed to their controlled portions. The convenient and portable packaging provides a small energy boost during a hectic workday. The emerging trend of healthy eating contributes to the evolution of the snack industry by encouraging companies to provide various healthy snack products that fulfill the growing need for on-the-go nutrition. This trend is likely to continue in the coming years, boosting the consumption of convenience foods & on-the-go snack products and driving the growth of the healthy snacks market.