Healthy Snack Market Size to Reach USD 142.6 Billion by 2032 | CAGR of 5.5%

Introduction

The Global Healthy Snack Market is poised for significant growth, with projections indicating that it will reach USD 142.6 billion by 2032, up from USD 84.4 billion in 2023, growing at a CAGR of 5.5% during the forecast period from 2023 to 2032. This growth can be attributed to several factors including rising consumer health consciousness, increasing awareness about the benefits of a balanced diet, and the growing preference for snacks that offer nutritional value without excessive calories, sugars, or artificial ingredients​​.

Key growth factors include the increasing prevalence of dietary restrictions, such as gluten intolerance and lactose intolerance, which have driven demand for gluten-free and dairy-free snacks. Additionally, the busy lifestyles and on-the-go eating habits of consumers have heightened the demand for convenient, portable snack options that provide quick energy and satiety between meals.

However, the market faces challenges such as intense competition, changing consumer preferences, and ingredient sourcing issues, which can disrupt supply chains and affect product availability. Despite these hurdles, innovations in product formulations and packaging are expected to sustain market growth, as consumers increasingly look for clean-label, plant-based, and protein-rich snack options.

PepsiCo Inc. has been focusing on expanding its healthy snack portfolio through the launch of products like Off The Eaten Path, a brand dedicated to plant-based snacks.
Nestlé S.A. has continued to innovate with its acquisition of Freshly, a fresh-prepared meal delivery service, which complements its range of healthy snack options.
Unilever PLC has made strides in the healthy snacks segment by acquiring Graze, a company known for its natural and wholesome snack offerings.
Tyson Foods Inc. launched a new line of protein-rich snacks called Pact, designed to cater to health-conscious consumers seeking convenient, nutritious snacks.

Statistics

• According to a recent survey by Ipsos India, a research consulting firm, 78% of respondents feel healthy snacking is essential (very important) (58%) and Fairly Important (20%) amidst changing lifestyles.
• The snack food market worldwide is expected to show a volume growth of 4.4% in 2024 and is expected to reach a volume of 81.0bn kg by 2028. Hence, the market is poised for solid growth.
• As we dive into Asia’s F&B market outlook, high protein, plant-based, or gluten-free snacks are seeing rapid growth as the market is anticipated to reach $152 billion by 2029.
• As consumers become more aware of their food choices, the healthy snack market value is currently USD 90.6 billion. Low-calorie snacks are additive-free and help people maintain healthy weight while fulfilling their craving.
• According to USDA, 22% of adults’ total consumption comes from snacks. Consumers are gradually replacing main meals by increasing urbanization and busy lifestyles.
• This is good news for exporters of pulses and pulse flours, whose imports increased fast in the last five years: more than 200% to reach 7.3 thousand tonnes in 2018.
• These developments correspond to the import growth of alternative non-wheat cereal flour, which went up from 7.7 thousand tonnes in 2014 to 31.7 thousand tonnes in 2018.
• The German organic market is worth €10 billion, more than any other European country. More than a third of the value consists of organic packaged food.
• Snack sales revenue of €2.1 billion is not impressive when looking at the consumption per capita, but it still makes France the third-largest market for snack food in Europe.
• With a shared revenue of €1.8 billion in snacks and a total organic market of €4.7 billion, the Nordic region is comparable to larger European countries.
• Sweden is the biggest Nordic country and has the highest expected annual growth in snacks with 3.6%, which is more than the leading snack countries: the UK (2.1%), France (1.7%), and Germany (2.6%).
• With a market size of €860 million, the Netherlands is perhaps not your largest European market for snacks. However, the Netherlands is a logistical supply hub for many ingredients used in healthy snacks.
• 2018, the Netherlands imported €56 million of unroasted cereal flakes and €25 million of non-wheat cereal flours, the highest value in Europe.
• The health and wellness food market is expected to see a growth rate of 5.7% between now and 2024.
• They produced pure cheese crispy snacks from Leerdammer cheese with a 3500% volume expansion and a remarkable decrease in density (from 1118 to 33 kg/m3).
• Private label brought in $674 million, with an 11.4% increase, and Planters brought in $75 million, with a 5.6% increase. Most of the brands in this subcategory experienced an increase in sales from the past year, with Nature’s Garden ($34 million in sales) increasing by 32.7%, and General Mills ($30 million in sales) increasing by 37.2%.
• When it comes to sustainability, 69% believe that sustainable packaging contributes to their enjoyment of the meal, and 82% wished packaging was biodegradable. Consumers are willing to pay more (64%) for snacks that are good for our environment, while 65% will pay more for ethically sourced ingredients.
• Research by Mintel indicates that 51% of Canadians want healthier snacks. For those between 18-24 years of age, 45% want regular food in snack-sized portions. Since they are often on the go, those in the same age category were more likely to dine out, yet feel the financial impact of their decision.
• According to Statista, the Snack Food segment will achieve a global revenue of US$498.30bn this year, with the market expected to grow annually by 4.16% up to 2027.
• More than half of Brits (30.3 million adults) say they snack between meals. That’s a significant number, but not quite as high as in the US, where two-thirds of people (equating to over 166 million adults) are considered snackers.
• Healthy snacks increased by 5% to 27% overall, gaining ground on salty (60%) and sweet (55%) snacks. Furthermore, “fresh” snacks were also the favorites of 35% of respondents.
• Snacking is a part of daily life for most Americans, with 70% of consumers having a snack on a typical day.

Emerging Trends

• Protein-Rich Snacks: Consumers are increasingly seeking snacks that are high in protein, aligning with their fitness and health goals. This demand is driving manufacturers to incorporate protein-rich ingredients into their products. In 2023, 79% of Americans expressed a preference for healthier, protein-rich snacks, highlighting the growing importance of protein in the snack market​​.
• Gluten-Free Options: This growth is fueled by increased awareness of gluten sensitivity and a rising demand for dietary alternatives. As more individuals are diagnosed with conditions like celiac disease, the market for gluten-free snacks continues to expand.
• Mindful Snacking: There is a significant shift towards mindful snacking, with consumers focusing on portion control and the nutritional value of their snacks. Approximately 78% of consumers appreciate snacks more when consumed mindfully, and 67% seek portion-controlled options. This trend is particularly prevalent among younger demographics, such as Gen Z and Millennials, who prioritize health and wellness​​.
• Clean Labels and Natural Ingredients: Consumers are increasingly scrutinizing ingredient lists and favoring products with clean labels free from artificial additives and preservatives. Snacks with natural ingredients, reduced sugar, and functional benefits like probiotics and antioxidants are gaining popularity. The demand for transparency and healthier options is driving this trend​​.
• Sustainable and Ethical Products: There is a growing emphasis on sustainability and ethical sourcing in the snack market. Consumers are looking for products that not only satisfy their nutritional needs but also contribute to environmental sustainability. Brands are responding by using sustainable packaging, promoting eco-friendly practices, and incorporating ingredients that have minimal environmental impact​​.
• Innovative Formats and Flavors: New snack formats, such as bites, balls, and miniature versions of traditional snacks, are adding excitement to the market. These formats offer portion control and cater to diverse snacking occasions. Additionally, there is a rising demand for unique and adventurous flavors, particularly among Gen Z consumers who are more willing to try new snack innovations.

Use Cases

• On-the-Go Nutrition: Busy lifestyles drive demand for convenient, portable snacks. Healthy snacks like nuts, seeds, and protein bars provide a quick, nutritious energy boost for people with active routines. These snacks are ideal for consumption between meals or while traveling, supporting sustained energy levels and preventing hunger pangs​​​.
• Dietary Restrictions and Health Conditions: The rise in dietary restrictions, such as gluten intolerance and lactose intolerance, has led to an increased demand for gluten-free, dairy-free, and nut-free snack options. These snacks cater to individuals with specific health conditions, providing safe and enjoyable alternatives without compromising on taste or nutrition​​​.
• Weight Management: Healthy snacks play a crucial role in weight management by offering low-calorie, nutrient-dense options that help control hunger and calorie intake. Snacks high in protein and fiber, such as yogurt, granola bars, and vegetable sticks, promote satiety and help maintain a balanced diet​​​.
• Fitness and Active Lifestyles: For fitness enthusiasts and athletes, protein-rich snacks are essential for muscle recovery and energy replenishment. Options like protein bars, shakes, and meat snacks provide the necessary nutrients to support physical activity and post-workout recovery​​​.
• Health-Conscious Consumers: Increasing health consciousness has driven the popularity of snacks made from natural, organic, and minimally processed ingredients. Consumers are looking for snacks with no artificial additives, preservatives, or excessive sugars. Plant-based snacks, such as those made from chickpeas, lentils, and nuts, are particularly favored for their health benefits and sustainability​​​.

Key Players Analysis

PepsiCo Inc. is actively expanding its portfolio to include healthier snack options. The company is focusing on reducing sugar, sodium, and fat in its products while increasing the availability of nutritious snacks. PepsiCo’s commitment to healthier options includes the launch of brands like PopWorks and Lay’s Oven Baked, and its goal to increase sales of Nutri-Score A and B-rated snacks tenfold by 2025. Innovations such as popped corn products and the introduction of new healthy snack brands are key components of their strategy​​.

Nestlé S.A. is enhancing its presence in the healthy snack market by acquiring innovative brands and launching new products. The company’s focus on nutrition and health is evident through its acquisition of Freshly, a fresh-prepared meal delivery service, which complements its range of nutritious snack options. Nestlé is also expanding its product line with gluten-free, dairy-free, and plant-based snacks to cater to diverse dietary needs. This strategic move aligns with the growing consumer demand for healthier snack alternatives.

Unilever PLC has made significant strides in the healthy snack sector through its acquisition of the British brand Graze. Graze, known for its nutritious and tasty snacks, received B Corporation certification, reflecting its commitment to health and sustainability. The brand focuses on providing snacks that are low in calories and free from artificial ingredients. Unilever’s integration of Graze aligns with its strategy to offer healthier snacking options and support sustainable practices.

Tyson Foods Inc. has entered the healthy snack market with the introduction of its “Pact” protein snacks line. These snacks are designed to cater to health-conscious consumers seeking nutritious and convenient options. Pact snacks are high in protein and come in various formats like bars and bites, emphasizing natural ingredients and minimal processing. This move is part of Tyson’s broader strategy to expand its presence in the health and wellness sector by meeting the growing demand for protein-rich snacks​​.

Kellogg Company, under its rebranded name Kellanova, actively participates in the healthy snack market through a diverse range of products, including protein bars and wholesome snack options like RXBAR. The company’s acquisition of Chicago Bar Company, the maker of RXBAR, for $600 million exemplifies its commitment to expanding its footprint in the health-conscious segment. By leveraging its global reach and robust manufacturing capabilities, Kellogg continues to innovate and offer nutritious snacks that cater to the growing consumer demand for health and convenience​​.

B&G Foods Inc. is making significant strides in the healthy snack market with its wide array of natural and organic snack offerings. The company’s brand portfolio includes Back to Nature and Pirate’s Booty, both of which focus on providing consumers with better-for-you snack options. B&G Foods emphasizes clean labels and natural ingredients, aligning with current consumer trends toward health and wellness. Through strategic acquisitions and consistent innovation, B&G Foods maintains a competitive edge in the growing market for healthy snacks.

Mondelēz International is leading the healthy snack sector by adapting to evolving consumer preferences for mindful and nutritious snacking. Their annual State of Snacking report highlights that consumers increasingly seek snacks that offer health benefits, portion control, and sustainability. Mondelēz caters to these demands with a range of products from Clif Bar and belVita to gluten-free and plant-based options. By focusing on mindful snacking and sustainability, Mondelēz continues to empower consumers with choices that align with their health and environmental values​​​.

Harvest Almond Snacks are a popular choice in the healthy snack market, offering nutritious and convenient options for health-conscious consumers. These snacks are rich in protein, fiber, and healthy fats, making them an ideal choice for on-the-go nutrition and fitness enthusiasts. The demand for almond-based snacks has surged, driven by their nutritional benefits and the trend towards plant-based diets. Harvest Almond Snacks are also available in various flavors and forms, such as roasted, flavored, or mixed with dried fruits, catering to diverse consumer preferences​​​​

Happytizers Pvt Ltd, based in Bengaluru, operates in the healthy snack market under the brand Lil’ Goodness. The company focuses on creating nutritious snacks for children, leveraging ingredients like vegetables, cereals, and milk to promote immunity and overall health. Their product range includes items such as crackers, porridges, and shelf-stable yogurts, available in over 67 stores and online. Recently, the company raised $661,048 in seed funding to expand its product range and distribution network​​​​.

Conclusion

The healthy snack market is poised for substantial growth in the coming years, driven by increasing consumer awareness about health and wellness. Key factors contributing to this growth include the rising demand for nutritious, convenient snack options that cater to various dietary preferences, such as gluten-free, vegan, and low-sugar products. Additionally, the expansion of online retail channels and the emphasis on clean labels and natural ingredients are enhancing market dynamics.