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The global healthy snacks market is expected to value USD 152.5 billion by 2030, advancing at a CAGR of 6.6% from 2022 to 2030. Snacking industry has witnessed progressive growth due to the constant evolution in consumption patterns and the inclination towards healthy food alternatives. Consumers today are seeking ready-to-eat, affordable, and indulgent snacking options that help meet their daily nutrition needs. The food industry in both developing and developed nations is rapidly evolving to meet the changing taste of consumers. In addition to this, increasing awareness among people regarding obesity and its ill effects such as diabetes, cardiovascular diseases, and others has positively influenced people globally to shift to cleaner eating habits that are both tasty and high in nutrition value.
Another major factor supplementing growth in the healthy snack market is the wide availability of the product on e-commerce platforms which makes food available to people who even live in remote areas. Many international brands are making their healthy snack variety available on third-party online platforms like Amazon. Safe to say, improving disposable income among people and growing healthy food choices will continue to expand the business scope in the times to come.
The sale and demand for snacks witnessed a sudden slump during the coronavirus outbreak. During the initial stages of the lockdown, panic buying of food supplies led to the rapid sale of ready-to-eat food in retail distribution channels. Although, increasing concerns with regard to the hygiene and safety of processed food later resulted in the trend of buying ingredients from retail stores and cooking meals at home. The rapid reduction in the consumption of processed and packaged food profoundly affects the snacks business. However, with people realizing the need to consume low-fat, high-protein snacks in order to maintain the body’s immune system for it to fight lethal diseases like COVID-19, the demand for healthy snacks is sure to gain considerable demand in the times to come.
With respect to product segment, healthy savory snacks have witnessed the highest demand owing to high demand from the working-class population and people with busy schedules as these snacks have emerged as a dinner replacement alternative. Healthy savory snacks help people satiate their appetite along with helping them meet their nutritional needs. Many food companies offer healthy varieties like natural baked chips, low in salt, non-GMO, multigrain, and many other choices.
Considering distribution channel, supermarkets and hypermarkets dominated the segment. This is primarily because these stores are present in every nook-and-corner and have a variety of healthy food options available. Many international brands from countries like the U.S., and Europe are opening their chains in developing nations like India to offer customers premium international snacking options. For instance, in October 2021, 7-Eleven- a popular American international chain of convenience stores made its entry in India. This highlights the growing demand for supermarkets globally supported by an improving disposable income, with both men and women working.
Along with the above, rising internet penetration and a reliable supply chain mechanism have boosted the sale of healthy snacks via e-commerce distribution channels. Many healthy snack companies today have their website, allowing people from all over the world, even those living in remote areas to buy their products online. Moreover, the supermarkets have also designed websites that display a variety of food options and offer them discounts and other benefits.
During the COVID-19 pandemic, online distribution channels became highly popular as the products were delivered home, controlling the risk of infection. This distribution method also proved beneficial for coronavirus-infected patients as they could get ready-to-eat healthy snacks – that offered them nutrition and taste and helped them cope with infection.
Regionally speaking, North America healthy snacks market accounted for the largest market share supported by high purchasing power among people along with growing consciousness among people regarding obesity and the need to maintain a balanced diet. Additionally, the U.S. has been a large consumer of snacks, however high cases of obesity, cardiovascular diseases, and diabetes have encouraged people to switch to healthier snacking options. Reportedly, 36.5% of adults in the U.S. are obese. This is one of the main factors supplementing the sale of healthy snacks in the region.
In addition to the above, urbanization, improved living standards, and enhanced purchasing power has complemented Asia Pacific healthy snacks industry over time. Efforts taken by the government to educate people about the need to consume healthy food and snacks to optimize immunity will continue to be a key market growth factor. With better FDI opportunities in APAC countries like Thailand, China, South Korea, and India along with a strong tourism industry, the presence of international supermarkets and hypermarkets that portray a wide variety of healthy snack options will drive the regional industry growth in the times to come.
Research Support Specialist, USA