Healthy Snack Market Growth, Size, Share & Trends | 2031 (2024)

Healthy Snack Market size was valued at USD 83.98 billion in 2019 and is poised to grow from USD 89.12 billion in 2023 to USD 143.14 billion by 2031, growing at a CAGR of 6.1% in the forecast period (2024-2031).

Increased disposable income coupled with long working hours and a corporate culture of busy lifestyles has led to a change in eating habits. Snacks have long been considered harmful due to their high oil and sugar content and are major contributors to health problems such as obesity, high blood sugar, and high blood pressure. However, due to the recent change in consumer behavior, the demand for oily-spicy foods is rapidly shifting from less packaged healthy, sugar-free and low-calorie snacks. This is an important trend that drives the growth of the market. Snacks with interesting, innovative flavors and textures, made using sustainable technologies, packed with recyclable materials, and with clean labeling are expected to dominate the healthy snacks market during the forecast period. Vegetarian snacks, zero fat, high/added protein, whole grains, low/zero sugar, zero oil/baked snacks, zero gluten content, and eco-friendly packaging are some of the developing trends in this sector. The number of innovations in the market is always increasing.

Personalized healthy snacks are another global market trend that is growing rapidly. Snacks that cater to the lifestyle, diet, and health needs of consumers are in high demand. As a result, prepared nutrition is becoming more popular. Keto-friendly and cholesterol-lowering snacks, as well as mood-enhancing, gut-friendly, and sleep-aiding snacks, are becoming more popular. For example, in March 2022, PepsiCo and Beyond Meat launched their first plant-based product, vegan jerky. Under their PLANeT partnership, the companies formed a joint venture to develop plant-based healthy snacks and beverages. However, the high cost of healthy snacks compared to other snacks is a significant restraint in this market. Also, severe unauthorized restrictions restricting the production of sound snacks, as well as high prices associated with them, will hamper the market growth.

US Healthy Snack Market is poised to grow at a sustainable CAGR for the next forecast year.

Market snapshot - 2024-2031

Global Healthy snack market is segmented on the basis of product, distribution channel, and region. By product, Healthy Snack Market is segmented into frozen & refrigerated, fruit, bakery, savory, confectionery, dairy and others. By distribution channel, Healthy Snack Market is segmented into supermarkets & hypermarkets, convenience stores, online, and others. By region Healthy Snack Market is segmented into North America, Europe, Asia Pacific and MEA.

Healthy Snack Market Analysis by Product

By product, market is segmented into frozen & refrigerated, fruit, bakery, savory, confectionery, dairy and others. Healthy savory snacks led the product segment in the overall market. Working class people and college graduates are driving the market demand, as healthy snack products have evolved as meal options for them. Savory snack foods help people satisfy their cravings and also prevent them from overeating at mealtimes. Companies are creating baked chips that are all-natural, non-GMO, multigrain, and low in salt, in addition to offering many health benefits. Ragi, soya, and vegetables are commonly used to make high-protein, low-fat chips.

However, healthy fruit snacks are expected to grow at a faster rate during the forecast period. Fruit bars continue to lead the market in innovation for healthy snacks. Prebiotic, probiotic, and omega-3-rich bars are available, as well as keto and paleo options that are lower in carbohydrates and higher in medium-chain triglycerides. Also, the amount of protein in bars is increasing, with whey and soy proteins being used more often, although pea proteins are becoming popular.

Healthy Snack Market Analysis by Distribution Channel

By distribution channel, market is segmented into supermarkets & hypermarkets, convenience stores, online, and others. In 2021, supermarkets and hypermarkets accounted for the largest share of the global market. An important factor in the dominance of this distribution channel is the total number of supermarkets and hypermarkets scattered around the world. For example, 7-Eleven is one of the largest supermarket chains in the world. It has approximately 46,000 stores in 16 countries. Also, the rapid development of retail infrastructure in developing economies is fueling market growth. Additionally, supermarket chains are following the trend of fast delivery services as they seek to increase their value globally. In recent months, a growing number of supermarkets have partnered with or invested in significant express delivery companies. Supermarkets leverage existing supply chains to increase margins, while delivery services leverage existing supply chains to expand their distribution networks and reduce market competition.

The COVID-19 pandemic has driven the online distribution channel, which is likely to be the fastest-growing segment during the forecast period. Collaboration between food delivery companies and supermarket stores is a growing trend. For example, in October 2021, Tesco, the United Kingdom's largest grocery chain, will collaborate with German delivery company Gorillas to deliver its products within 10 minutes. The deal will help Tesco tap into the fast-growing fast-track delivery market, which has emerged as lockdowns and work-from-homes have accelerated the shift to online shopping.

North America accounted for the largest market share, accounting for nearly 33% of the global share in 2021. Following the emergence of the Covid-19 pandemic, the demand for nutritious snacks has increased significantly in the United States. The United States used to be a big consumer of snacks, but consumers have shifted their focus to consuming healthy and nutritious snacks to avoid all the health-related risks associated with excessive snacking behaviour. Also, the high penetration rate of supermarkets and hypermarkets, as well as convenience stores, is another important factor driving market sales in the region. These convenience businesses are collaborating with delivery services to increase their e-commerce presence. Obesity and diabetes are two major public health challenges in the United States that are expected to increase the demand for healthy snacks in the coming years. Increasing health and fitness awareness has reduced the consumption of high-calorie unhealthy snacks, which is expected to create new opportunities for healthy snack providers during the forecast period. Other factors that could impact snack sales over the next ten years include the high prevalence of chronic diseases, changing consumer preferences, stricter restrictions to limit the use of artificial ingredients, and increased demand for convenience meals. Some of the country's most popular snacks include pretzels, beef jerky, cereal, and popcorn.

Asia Pacific is expected to be the fastest-growing region in the global market. There is also a growing awareness in Asia of products that are great for the gut and immune-related such as prebiotics and probiotics. Adding functional ingredients to snacks, such as macronutrients and antioxidants, has recently become a popular technique for many companies to create healthier snacks. Also, as a marketing strategy, more companies are emphasizing clear labeling and product taste. This is expected to drive the market during the forecast period. Globalization and Western cultural influence have increased in many Asian countries, including India, Korea, Japan, and China. Dietary habits are expected to change over the next 10 years, per capita disposable income will increase, convenience food consumption will increase and the number of working women will increase, all these factors will affect the shipping of snack foods to Japan, Korea, and other Asian countries. Rice cakes and pork are expected to be popular snacks in almost every Asian country. However, rising prices of snacks and other packaged foods as a result of the changing world economic conditions are expected to limit the sales of snacks in Japan and Korea.

Healthy Snack Market Drivers

Consumption of on-the-go snacks is increasing

• Increasing consumption of on-the-go snacks is driving the positive growth of the global healthy snacks market. Global demand for healthy snacks is expected to increase as consumers become more aware of the health risks associated with junk food consumption, such as heart disease, diabetes, and other chronic diseases. One of the key trends in the global healthy snacks market is the increase in consumer desire for healthy eating habits and a healthy lifestyle. Healthy snacks are becoming an important part of people's diets worldwide, driving the global healthy snacks market.

Increasing customer per capita earnings, modernization, and a larger workforce

• The rising per capita income of consumers as a result of modernization and a larger labor force is one of the most essential factors for market growth. People in their thirties to mid-forties spend more money on nutritious snacks. Increasing financing for innovative class offerings, as well as creativity initiated by large corporations for product branding, is predicted to drive the market. Consumer fitness awareness is predicted to increase the demand for healthy snacks in the coming years due to awareness initiatives sponsored by companies, governments, and non-governmental organizations.

Healthy Snack Market Restraints

High cost of healthy snacks and strict unofficial laws

• The high cost of healthy snacks compared to other snacks is a significant restraint in this market. Also, strict unauthorized restrictions that prevent the manufacture of sound treats, as well as high prices associated with them, will hamper the growth of the market.

Global healthy snack market is highly competitive with the presence of local as well as global companies. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, which are contributing to the growth of global healthy snack market.

Healthy Snack Market Top Player’s Company Profiles

• PepsiCo
• General Mills
• Nestle
• KIND LLC
• Kellogg Company
• Mondelēz International
• Tyson Foods
• Hormel Foods
• The Hain Celestial Group
• B&G Foods
• Diamond Foods
• Conagra Brands
• Snyder's-Lance
• The Hershey Company
• GlaxoSmithKline plc
• SunOpta Inc.
• Clif Bar & Company
• Graze
• Quest Nutrition

Healthy Snack Market Recent Developments

• In January 202, Mondel"z International purchased Hu Master Holdings, the parent company of Hu Products, a fast-growing US-based snacking firm that offers high-quality snacks made from simple ingredients.

• In February 2020, B&G Foods, Inc. acquired Farmwise L.L.C., a Massachusetts-based manufacturer of frozen veggie fries, veggie tots, and veggie rings.Cauliflower, navy beans, and onions are used to make Farmwise's frozen veggie snacks. The products are vegan, non-GMO Project verified, and free of common allergens such as gluten, wheat, soy, dairy, tree nuts, and peanuts.

• The increasing number of people entering the formal labor market, coupled with their busy lifestyles, has increased the demand for snacks. This is due to the fact that snacks provide quick satiety and a much-needed break during a busy day. This market for healthy snacks is fueled by the growing trend of avoiding the risk of certain chronic diseases and maintaining health and wellness through conscious consumption of these snacks. The on-the-go nutrition trend is rapidly gaining popularity among millennial and working adults as they seek snack solutions to combat nutrient deficiencies and other health issues in their busy schedules.

• Convenience food is in high demand globally as a result of rapidly changing lifestyles and food choices due to increasing purchasing power and health awareness among consumers. As a result, this reflects the rising spending on healthy snack foods and creates the potential for top companies to expand their production and distribution capabilities to meet growing consumer needs. Also, busy lives and a growing working population with little or no time to prepare food will increase the demand for prepared snacks and boost the global snack food industry in the coming years.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our global healthy snack market analysis, by product, healthy savory snacks dominated the product segment in the overall market. Working class people and college graduates are driving the market demand for healthy savory snacks. By distribution channel, supermarkets and hypermarkets accounted for the largest share of the global market. An important factor in the dominance of this distribution channel is the total number of supermarkets and hypermarkets scattered around the world. For example, 7-Eleven is one of the largest supermarket chains in the world. It has approximately 46,000 stores in 16 countries. North America accounted for the largest market share, accounting for nearly 33% of the global share in 2021. Asia Pacific is expected to be the fastest-growing region in the global market. There is also a growing awareness in Asia of products that are great for the gut and immune-related such as prebiotics and probiotics. However, the high cost of healthy snacks compared to other snacks is a significant restraint in this market. Also, severe unauthorized restrictions restricting the production of sound snacks, as well as high prices associated with them, will hamper the market growth.