Donuts, potato chips, granola bars, nuts, carrot sticks or fruit? What is your snack of choice?
According to The NPD Group, from 2008 to 2018 the number of meals Americans consumed per capita dropped by 3.8%. Despite eating fewer meals, Americans were not eating fewer calories during this time period as evidenced by the upward trend in adult obesity rates. In 2008, the highest obesity rates, 30-34.9%, occurred in 4 states. In 2017, the last year for which data were available, 22 states had obesity rates of 30-34.9%. That year, seven states also had obesity rates of 35% or more.
As today’s market size shows, over nearly the same time period, 2011 to 2018, the number of ready-to-eat snacks consumed in the United States increased by 8.3%. According to Mintel, 94% of Americans snack at least once a day. On average, snackers consume more than 2.5 snacks daily. Traditionally, snacking meant consuming food other than at mealtime. But more often in recent years, snacks have been replacing traditional meals, especially among the younger generations. In the IRI 2018 Snacking Survey, 63% of respondents overall reported buying their most recent snack as a treat. However, 50% of 18-24-year-olds often snack rather than eat full meals.1 Euromonitor coined the term “
Worldwide, nearly a quarter of all packaged goods sold are snack foods. Over the past decade, sales have increased by 16% and are expected to reach $620 billion by 2021. Europe had the largest share of the snack food market in 2018, 45%, followed by North America at 33%. Worldwide, nuts and seeds are the fastest growing segment; in North America, meat snacks are.2 Snack food revenue is expected to reach $42 billion in the United States in 2019.
What about consumers’ increasing demand for healthier foods, including snacks? This segment of the market is still relatively small in comparison to the snack food market overall. In 2017, revenues for healthy snacks totaled $3.58 billion in the U.S., with cereal and granola bars constituting the largest share, followed by meat snacks. Revenues are expected to climb to $5.3 billion in 2025. Leading companies include General Mills; Mondelez International, Inc.; PepsiCo Foods; Nestle S.A.; B&G Food Inc.; and The Kellogg Company.
1 Source: 2018 State of the YAYA – Life Between the Lines, MOJO Ad, February 19, 2018 available online here.2 Meat snacks include jerky and protein packs.
Geographic reference: United States
Year: 2011 and 2018
Market size: 356.4 billion and 386 billion, respectively
Sources: Zlati Meyer, “Do You Love Snacks? Here’s Why You’re Not Alone,” USA Today for the Lansing State Journal, February 4, 2019, page 1B; Jeff Gelski, “Generational Traits Impact Consumer Trends,” Meat+Poultry, April 4, 2019 available online here; “Adult Obesity in the United States,” The State of Obesity, Robert Wood Johnson Foundation, September 2018 available online here; Joanie Spencer, “Snack Brands Rewrite the Story at Breakfast,” BakingBusiness.com, April 2, 2019 available online here; 2018 State of the YAYA – Life Between the Lines, MOJO Ad, February 19, 2018 available online here; Sally Lyons Wyatt, State of the Snack Food Industry, March 28, 2018 available online here; “Snack Food Production Industry in the US,” IBISWorld Industry Insights, February 2019 available online here; “U.S. Healthy Snacks Market Analysis and Segment Forecasts, by Product (Cereal & Granola Bars, Nuts & Seeds, Meat, Dried Fruit), and Trend Analysis, 2014 – 2025,” Hexa Research Press Release, July 2018 available online here; “U.S. Healthy Snacks Market Size to Reach USD 5.3 Billion by 2025,” Hexa Research, July 30, 2018 available online here; “Global Snack Food Market Worth USD 620 Billion by 2021 – Analysis, Technologies & Forecasts Report 2016-2021 – Vendors: Calbee, ConAgra, Ferrero – Research and Markets,” BusinessWire Press Release, November 16, 2016 available online here; Kim Overstreet, “What You Need to Know About the Global Snack Food Market,” Packaging World, June 4, 2018 available online here; “Global Snack Foods Packaging and Processing Market Assessment 2018: Consumer Trends, E-Commerce Trends and Industry Forecasts by Snack Type – ResearchAndMarkets.com,” MarketWatch Press Release, August 21, 2018 available online here.
Image source: Adapted from Sornram Srithong, “chip-cola-food-potato-drink-table-1618858,” Pixabay, August 26, 2016 available online here.