Global Snacking Trends for the Food & Beverage Industry – Part 2
As a continuation of our series on global snacks trends, find four more bite-sized snacking industry takeaways below.
- The pandemic has led consumers to take a more holistic approach to health, which includes a focus on healthy products, personal ethical concerns, and questions on the sustainability of certain farming techniques.
- Such preferences have caused consumers to shift toward plant-based products. According to ADM, 56% of global consumers are eating more plant-based foods, with the meat-free category experiencing 29% YoY growth.
- Producers are capitalizing on the growing demand, such as Gosh, which launched RTE plant-based snack bites.
- “There’s an ever-growing demand for healthy, plant-based snacks and we believe that we are entering this category with a truly unique offering, in a convenient format,” said William Topp, Marketing Manager of Gosh.
- Younger consumers are increasingly worried about the environment and climate change, driving food companies to be more thoughtful toward sustainability and reducing their environmental impact. This has led to large snack companies striving towards a lower carbon footprint during production.
- COVID-19 has accelerated this trend, according to a survey conducted by GlobalData, which found that 41% of European consumers believe a lower environmental footprint is more important as compared to their views before the pandemic.
- SnackFutures has capitalized on this opportunity by producing a carbon neutral cracker NoCOé.
- BFY foods are a combination of healthy and clean products. Healthy is defined as light, nutrient dense, and devoid of harmful ingredients, while clean denotes transparency and simplified ingredients.
- With growing consumer demand for claims such as organic, non-GMO, gluten-free, and no additives, BFY is a growing trend as consumers look for both transparency in the supply chain and responsible manufacturing.
Key BFY trends include:
- Low-sugar or alternative sweeteners
- Plant-based foods
- Protein-centered snacks
- Healthy, yet tasty
- Free-From fillers, preservatives, and harmful ingredients
- The six small meals concept1 has made an impact on the snacking category. Certain studies suggest that consuming six small and balanced meals a day suppresses hunger and appetite, and aids in weight loss and digestion.
- The convenience factor of multiple small snacks plays a role, as busy consumers look to replace their larger meals with quick snacks throughout the day, saving time on meal preparation.
- As a result, food manufacturers are introducing balanced, well-portioned snack products that offer wholesome nutrition and are fit for several occasions.
- Certain food diets, such as Vegan, Keto, and Paleo, have also contributed to and promoted this trend.
Looking for a more in-depth analysis of food & beverage industry markets?
If you are interested in discussing the current state of the M&A and capital markets within the Food & Beverage market or broader Consumer industry, please contact us using the form provided below. We welcome the opportunity to learn how we can assist you in navigating today’s dynamic M&A environment and to help you maximize your strategic objectives. Our food & beverage investment banking team has deep understanding of the strategic, financial, and operational factors impacting middle market companies and has a long track record of success in representing companies in M&A advisory.