Better-for-you Snacks Market

Better-for-you Snacks Market Outlook (2022-2032)

The global better-for-you snacks market has reached a valuation of US$ 28.5 billion and is anticipated to expand at a CAGR of 6.7% to reach US$ 54.3 billion by the end of 2032. Sales of better-for-you snacks accounted for nearly US$ 27 billion at the end of 2021.

The top 5 manufacturers of better-for-you (BFY) snacks in the world account for over one-fourth market share at present.

Report Attributes	Details
Better-for-you Snacks Market Size (2021A)	US$ 27 Billion
Estimated Market Value (2022E)	US$ 28.5 Billion
Forecasted Market Value (2032F)	US$ 54.3 Billion
Global Market Growth Rate (2022-2032)	6.7% CAGR
North America Market Share (2021)	~24.6%
East Asia Market Growth Rate (2022-2032)	~8.3% CAGR
United States Market Growth Rate (2022-2032)	~4.5% CAGR
Market Share of Top 5 Companies	~27.2%
Key Companies Profiled	Mondelez International, Inc. Kellogg's Company Nestlé B&G foods Warrell Creations PepsiCo's Frito-Lay Trufood Velocity Snack Brands Left Field Foods Boulder Canyon

Consumption Analysis of Better-for-you Snacks (2017-2021) Vs. Market Forecasts (2022-2032)

It’s of no surprise: many consumers are trying to live healthier in the past few years. The rise in obesity, which is not just a cosmetic concern, but also increases the risk of other diseases and health problems such as diabetes, heart disease, etc., has drawn attention to what to eat and drink. Health has become as important as value to consumers when shopping for food and beverage products, which has guided a compound annual growth of 4.2% for the sales of better-for-you snacks over 2017-2021.

Moreover, the prevalence of cardiovascular diseases, gut diseases, and other chronic conditions is rising, and so is consumer exposure to information. Due to modernization and urbanization, consumers are becoming more aware of the better-for-you snacking trends in the market. This turns out as a great opportunity for better-for-you snack suppliers as it is one of the current trends in the food and beverage space.

Generally, the term better-for-you invokes a healthier connotation for most consumers, which positively impacts the market. The shift of the population towards prioritizing health and wellness has led to a change in snacking behavior as compared to previous decades.

Fact.MR suggests that the global better-for-you snacks market will be valued at US$ 54.3 Bn by 2032-end, posting a CAGR of 6.7% through 2032.

• Short Term (2022 Q2 to 2025): Increasing use and integration of better-for-you snacks will favorably affect market expansion. Over the short term, the global better-for-you snacks market is expected to garner an incremental dollar opportunity of US$ 7Bn from 2022 to 2025.
• Medium Term (2025-2028): Due to frequent snacking habits and supportive government initiatives, better-for-you snacks are expected to be in high demand in North America and Europe. Hence, Fact.MR forecasts an increased $ opportunity of US$ 9.8 Bn over 2025-2038.
• Long Term (2028-2032): Better-for-you snacks will become more popular as people resort to them to limit their appetite and improve their health. As such, during 2028-2032, Fact.MR projects an incremental opportunity worth US$ 15.3 Bn for the market.

Over the past four years, the global BFY snacks market registered a CAGR of 4.2%, according to Fact.MR, a market research and competitive intelligence provider.

Market share analysis of better-for-you snacks based on product type and region is provided in the above image. Under product type, the cereals, flakes & seeds segment dominates with 29.1% market share.

Why is Demand for Better-for-you Snacks Increasing at a Fast Pace?

“Consumer Demanding Healthier Snacks Setting the Pace for Better-for-you Snack Suppliers”

In the world of snacks today, consumers seek products that deliver an improved sense of well-being without compromising on taste and texture. This behavioral change among the population has opened a plethora of opportunities for the better-for-you snacks industry to grow and innovate.

Additionally, wellness and health are very important to millennials.

• According to a recent study on millennial preferences, 87% of millennials consume at least one BFY snack every week.
• This has sparked interest in BFY snacks among a younger generation; according to millennial moms, 50% of their kids would choose a BFY snack over a packaged one.

And while millennials are a significant socio-economic contributor to the BFY market, other age groups may also be adopting the style. Due to an increase in medical conditions such as obesity and heart disease, which are linked to an unhealthy diet, consumers of all ages are leaning towards the adoption of healthier lifestyles, which include healthy snacking as well. This has surged the market for better-for-you snacks.

Apart from the nutritional benefits, BFY snacks are being increasingly accepted as on-the-go snacks, driven by the packaging innovations of manufacturers. More than 50% of snack consumers in the U.S. prefer an on-the-go snack to fit their lifestyle against other alternatives.

The market growth of better-for-you snacks has been boosted by the smart incorporation of healthy claims and trends, such as low-sugar, plant-based foods, protein-centered snacks, and free-from fillers, preservatives, & harmful ingredients.

Overall, the better-for-you snack business has strong development prospects and ample opportunities for generating more revenue due to the supply chain transparency.

“Innovating Marketing Strategies by Key Players”

An upsurge in the number of manufacturing and service companies has completely changed the better-for-you snacks market in the last few years.

Consumers today demand great taste, real food ingredients, and nutrition from their better-for-you snacks. Understanding that not all consumers will forego taste in favor of a healthy diet, producers are combining the two qualities - taste and health - to attract consumers and broaden their snack horizons with novel flavor profiles.

For instance, the U.S. has seen a large increase in its per capita avocado consumption in recent years. To bring the creaminess of this flavor together with a refreshing lime twist and a hint of spice to finish, a U.S.-based company that prioritizes health and wellness incorporated the ingredient in their portfolio of better-for-you snacks.

Therefore, over the coming years, the better-for-you food market will grow as a result of all these strategies used by leading industry players.

Which Factor Might Restrain Market Expansion to Some Extent?

“Competition in Traditional Snacks Market Will Slow Down BFY Market Growth”

Growing consumer interest towards healthier options is a major factor for the boost of the better-for-you snacks market; however, there are market-wide challenges such as competition from the traditional snacks market.

The ever-growing non-better-for-you snack options such as chips, salty snacks, dips, etc., could be a great barrier to the acceptance of better-for-you snacks among people. Healthy snack options such as fresh fruits and vegetables can also create fierce competition for better-for-you snack producers.

Additionally, the high cost related to better-for-you snacks as compared to traditional and healthy snacks could hinder the demand growth for better-for-you snacks.

Lack of awareness and limited access to better-for-you snacks across the world could be another key factor denting the growth of the better-for-you snacks market to some extent.

Country-wise Insights

Why are Americans More Inclined towards Better-for-You Snacks?

The United States better-for-you snacks market is currently estimated at US$ 5.7 billion and is expected to reach US$ 8.9 billion by 2032.

• According to a survey, Americans are completely addicted to snacking. Approximately 85% of U.S. consumers eat at least one snack every day, with millennials eating significantly more.

The quantity of snacking opportunities has grown, as have the choices that are available to customers. The adoption of snacks that are better for you has increased along with growing health concerns among the U.S. population.

The eye-catching development of America's healthy snacking behavior is one of the major factors contributing to market growth for better-for-you (BFY) snacks for health-conscious consumers.

In the United States, nearly 42% of adults and 20% of the younger population suffer from obesity, which is generally caused due to unhealthy diets. This has led the population to opt not only for healthy food but also for healthy snacking, which gives a great opportunity for better-for-you snack manufacturers in the U.S.

Why is the Europe Better-for-you Snacks Market So Lucrative?

The way of snacking is changing around the world, as more informed and empowered customers look for tastier, healthier, and more nourishing foods. Consumers in Europe are no different.

• According to a study on consumer snacking behavior in Europe, 40% of consumers frequently eat snacks when they are bored, while 48% eat snacks to relieve tension or irritation.

These findings support the notion that snacking is mostly motivated by distraction in Europe. However, diet optimization and nourishment continue to be significant factors for many European consumers when they snack, which offers a highly lucrative environment for manufacturers of better-for-you snacks in the region.

The European better-for-you snacks market is expected to reach a valuation of US$ 14.4 billion by 2032.

Category-wise Insights

Why are Cereals, Flakes & Seeds Widely Preferred as Better-for-you Snacks?

Busy lives and time constraints among the population have driven demand not only for convenient meals but also for snacking options. Cereals, flakes & seeds are widely preferred as better-for-you snacks, both, by industries as well as consumers because of their health benefits and ease of preparation.

Cereals, being a nutritionally important source of dietary protein, iron, and vitamins, are highly preferred by both, the younger as well as the millennial population.

With the global economy on the way up, the cereals, flakes, and seeds segment is predicted to expand at a CAGR of 6.2% through 2032.

Will Diversity of Primary Ingredients in BFY Snacks Drive Market Growth?

Dependence of the sales of better-for-you snacks on primary ingredients is creating ample opportunities for manufacturers to innovate and expand their BFY snacks portfolios. However, this can often be the bottleneck for the commercial success of these products.

For instance, protein is a universal requirement for customers worldwide of all ages; yet, it can be challenging to offer the required amount, provide a neutral taste, and keep an appealing texture. Defatted almond flour, or almond protein powder, is a recent discovery that goes even further towards meeting protein requirements, even though almonds already offer 6 g of protein in a 1-ounce dose.

A large portion of the market for better-for-you snacks is being driven by innovations in primary ingredients. High demand is predicted to be driven during the evaluation period due to innovations in healthier snacking options.

Competitive Landscape

Prominent better-for-you snack manufacturers are Mondelez International, Inc., Kellogg, Nestle, B&G foods, Live well snacks, Warrell Creations, PepsiCo's Frito-Lay, Trufood, Velocity Snack Brands, Left Field Foods, Boulder Canyon, and Amplify Snack Brands.

Leading better-for-you snack brands are employing sustainable technologies and optimization systems for diverse end users. The top producers of better-for-you snacks use sustainable technologies and end user-specific optimization techniques.

Key manufacturers in the better-for-you snacks category are concentrating on creating customized new product designs to address product adoption limitations and follow the general population trend.

• In Aug.2020, with the support of AUA Private Equity Partners, snack food contract maker TruFood purchased Simply Natural Foods (SNF). The transaction is anticipated to strengthen TruFood's position in the nutrition bar and chocolate molded snacking markets, where SNF serves both, private label clients and major fast-growing CPG firms as a co-manufacturer.
• In Dec. 2019, BFY Brands Inc., a snack company that makes PopCorners® and other better-for-you snacks, was acquired by PepsiCo, Inc. The BFY brand will report to PepsiCo's Frito-Lay and will expand Frito-Lay’s better-for-you snacking portfolio.

Fact.MR has provided detailed information about the price points of key manufacturers of better-for-you snacks positioned across regions, sales growth, production capacity, better-for-you food trends, and speculative technological expansion, in the recently published report.

Segmentation of Better-for-you Snacks Industry Research

• By Product Type :

  • Baked Snacks
  • Popped Snacks
  • Snacks Bars
  • Trail Mix
  • Cookies
  • Cereals, Flakes & Seeds
  • Others (Yoghurt, Ice Cream)

• By Primary Ingredient :

  • Oats
  • Potatoes
  • Vegetables (excluding Potatoes)
  • Rice
  • Corn
  • Lentils
  • Dairy Alternative
  • Others

• By Sales Channel :

  • Online
    • Brand Websites
    • e-Commerce Platforms
  • Offline
    • Supermarkets/Hypermarkets
    • Convenience Stores
    • Specialty Stores

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & ASEAN
  • Oceania
  • MEA