North America Snack Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

North America Snack Food Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The North American Snack Food market is projected to register a CAGR of 3.79% during the forecast period, 2022-2027.

As a result of the COVID-19 pandemic, many private snack food players emerged in the markets to meet the increased demand. During the lockdown, there was a rise in the demand for packaged and reliable snack food brands, which will probably have a positive effect on the market's expansion. As a result of the coronavirus outbreak in the United States, 27% said they were snacking more (as per Food Insight). For instance, in February 2021, the American Frozen Food Institute (AFFI) reported that the sales of frozen meals such as seafood, and poultry were 21.0% higher than in the year 2019 with double-digit sales of all types of frigid/chilled meals. In continuation, retail demand for the above-mentioned products throughout the pandemic has been 15-20% higher than usual.​

Over the medium term, the high snack consumption in Canada, coupled with the increasing demand for on-the-go snack options, is majorly driving the market growth. Moreover, consumers prefer fruits and fruit-based snacks bar, followed by nuts. Thus, manufacturers are continuously launching innovative new flavors and expanding into the Canadian market to meet the rising demands for all the variants of snack bars.

The rising product variety, local Mexican flavors, changing consumer lifestyles, and rapid growth in modern distribution channels are major factors contributing to the increasing sales of snack food products across the region.

Key Market TrendsIncrease in Demand for Convenient and Healthy on-the-go Snacking

The increasing consumer demand for healthy breakfast alternatives with low-fat and low-sugar in products is increasing the demand and driving the market for healthy snacks such as granola bars in the region. ​The high snack consumption in the country, coupled with the increasing demand for on-the-go snack options, is majorly driving market growth. Thus, manufacturers are continuously launching innovative new flavors and expanding into the United States market to meet the rising demands for all the variants of snack bars. For instance, in February 2020, Riverside Natural Foods launched its GOOD TO GO soft-baked keto-friendly snack bars in the United States. It is available in cocoa coconut, vanilla almond, raspberry lemon, and cinnamon pecan varieties.

Moreover, an increased inclination towards healthy snack products such as nuts, fruit snacks, snack bars, and other confectionery products is due to the growing prevalence of various lifestyle disorders such as atherosclerosis, stroke, diabetes, and obesity. According to data based on the U.S. Census data and Simmons National Consumer Survey (NHCS), 24.1 million Americans used 10 or more packages of nutritional snacks in 2020. Companies are also coming up with innovative flavors and health-boosting ingredients to attract consumers. For instance, in 2020, Diane’s Kitchen LLC, a consumer packaged food company, launched Daily Crunch Snacks, a unique line of sprouted nuts. Daily Crunch is available in three product varieties, namely, Just Sprouted Almonds, Coffee-Soaked Sprouted Almonds, and a Nut-Berry Medley.

Supermarkets/Hypermarkets Hold a Prominent Share in the Market

Supermarkets/hypermarkets provide a customer-friendly shopping environment where the customers can buy the products of their choice by choosing appropriate products from all the product offerings made by multiple brands, as per their requirements. These product offerings include snacks ranging from frozen potato fries, wedges, pizzas, croissants, fish cakes, squid rings, frozen momos, yogurt, savory snacks, and many more.​ Owing to a huge retail space catering to a wide variety of preferences, the supermarkets/ hypermarkets segment is a dominant channel, in terms of sales of snacks, across North America.​ Factors, such as business expansion, and the increasing number of hypermarkets and supermarkets, are expected to add to the sales of these retail formats and significantly contribute to the snack market’s growth.​ Different supermarket and hypermarket chains like Walmart, Kroger, Tesco, and many others, offer different loyalty benefits to retain consumers. ​ For instance, Kroger Co. offers a family loyalty program to its customers. By using the Shopper’s card, the customer can earn one fuel point on every USD 1 spent in the supermarket.​

Competitive Landscape

The North American snack food market facilitates its operation in a highly competitive market. This is due to the presence of several global players in this segment. The major players in the North American snack food market are PepsiCo Inc., Kellogg Company, Nestle SA, Conagra brands, and General Mills Inc. The market has a presence of various regional players, and most of them are privately owned, such as Kind Snacks in the United States.

Emphasis is given to the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. For instance, in 2022, Beyond Meat and Pepsico launched plant-based jerky, the first snack made under their partnership. It contains 10 grams of protein per serving and is available in three varieties: Original, Hot & Spicy, and Teriyaki.

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• The market estimate (ME) sheet in Excel format
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