Better For You Snacks Market Size, Share & Trends Analysis Report By Product (Frozen & Refrigerated, Fruit, Nuts & Seeds), By Claim, By Packaging, By Distribution Channel, By Region, And Segment Forecasts, 2024 - 2030

Better-for-you Snacks Market Size & Trends

The global better for you snacks market size was estimated at USD 47.04 billion in 2023 and is expected to grow at a CAGR of 7.6% from 2024 to 2030.The increasing demand for convenient and portable food options, driven by changing lifestyles and busy schedules, has significantly boosted the market for better-for-you snacks. This trend is coupled with a growing emphasis on healthier snacking choices and rising awareness of nutrition, which has propelled the development of a diverse range of healthier snack alternatives. In addition, technological advancements and the widespread accessibility of these snacks through various retail channels, including online platforms, have further contributed to the market's growth.

The demand for "better-for-you" (BFY) snacks is rapidly increasing, driven by a convergence of health consciousness, dietary preferences, and environmental concerns. Consumers are becoming more aware of the links between diet and health, pushing them to choose snacks that are lower in sugar, fat, and calories while being rich in natural ingredients. The rise in food allergies and intolerances, along with popular diets like keto, paleo, and veganism, has also shaped consumer choices, favoring snacks that are gluten-free, dairy-free, and plant-based.

In addition, the clean label movement, emphasizing transparency and simplicity in ingredient lists, has gained traction, with many opting for snacks made with organic and sustainably sourced ingredients. The convenience factor is equally important, with busy lifestyles driving demand for portable, easy-to-eat options.

The Healthy Snacking Report 2024 by Farmley, a healthy snacking brand, surveyed over 6,000 people across India from different age groups, including boomers, Gen X, millennials, and Gen Z. The report found that 67% of Indians prefer makhana (fox nuts) and dry fruits as their go-to healthy snacks. However, 58% of respondents cited high retail costs as a barrier to switching to healthier snacking options.

The report highlighted the popularity of makhanas, with 59% of millennials, 49% of Gen Z, and 47% of Gen X considering it their trusted snack. In addition, 70% of respondents revealed that their favorite time to snack is with their evening cup of tea or coffee. Millennials and Gen Z tend to prefer bolder flavors such as peri peri, while older generations favor classic flavors such as salt and black pepper.

Furthermore, ethical considerations, such as sustainability and fair trade practices, are influencing purchasing decisions, making consumers more inclined towards snacks that support environmental sustainability and local farming. This shift is reflected in the growing popularity of protein-rich snacks, whole grain options, and low-sugar alternatives, all contributing to the dynamic landscape of the BFY snacks market.

According to a report published by FoodNavigator-USA in 2023, the healthy snack bar market is driven by the preference for whole nuts, seeds, fruits, and chocolate, as well as health and convenience factors. The market is also positively influenced by the growing awareness of maintaining a healthy lifestyle and the demand for snacks that offer nutritional benefits.

As a result of the pandemic, many private businesses focused on better-for-you snacks have emerged to meet the increased demand. In developed countries, these snacks provide a quick and accessible source of nutrition and energy, keeping the demand for novel, healthier snack products consistently high. The rise in independent working women, dual-income families, and nuclear families globally has further driven this demand. The demographic shift has significantly increased the need for convenient meal options. Better-for-you snacks are widely regarded as the most convenient alternative to regular food, as they can be consumed at any time, thereby propelling demand in the healthy snack market worldwide.

Product Insights

Savory better for you snacks accounted for a share of 33.0% in 2023. These snacks offer an extensive range of flavors and textures, catering to diverse consumer preferences and ensuring continuous product innovation. With the increasing demand for convenient and on-the-go options, savory snacks provide a quick and satisfying solution for busy lifestyles. In addition, many people are conscious of their sugar intake and prefer to avoid the spikes in blood sugar levels associated with sweet snacks. Savory snacks often contain less sugar and may be perceived as a healthier choice, helping to maintain more stable energy levels.

The fruit, nuts & seeds snacks is expected to grow at a CAGR of 8.7% from 2024 to 2030. The growing popularity of healthy snacks, including fruits, nuts, and seeds, is driven by increasing consumer demand for convenient, tasty, and nutritious options. This trend is further influenced by the rise of dietary patterns such as plant-based diets, veganism, and paleo diets, which align well with these snack choices. In addition, the perception of fruits, nuts, and seeds as wholesome, natural, and eco-friendly boosts their appeal among environmentally conscious consumers. According to the State of the Industry 2022 report, there is also a growing interest in healthy indulgences within snack mixes and nuts, spurring ongoing innovation in this market segment.

Claim Insights

Sales of low fat better for you snacks accounted for a revenue share of 40.7% in 2023. As more people become health-conscious, there is a strong preference for snacks that align with a healthier lifestyle. Low-fat snacks are often seen as a way to reduce calorie intake and maintain a balanced diet, which appeals to those looking to manage their weight or improve their overall health.

Sales of gluten-free better for you snacks are expected to grow at a CAGR of 8.5% from 2024 to 2030. There is growing awareness about the potential negative effects of gluten on health, even in individuals without specific sensitivities. As a result, many people choose gluten-free options to potentially enhance their overall well-being and avoid the adverse effects of gluten. For individuals with celiac disease or non-celiac gluten sensitivity, consuming gluten can cause severe digestive issues and other health problems. Gluten-free snacks are essential for managing these conditions and avoiding symptoms like bloating, diarrhea, and fatigue.

In December 2023, CauliPuffs, a family-owned business from Central Coast California, launched a wholesome line of puffed snacks made from a tasty blend of cauliflower, rice, and corn. Each crispy puff is gluten-free, soy-free, and non-GMO, and it is lovingly baked in the U.S. CauliPuffs uses avocado oil instead of traditional seed oils, offering a healthier option. Available in flavors such as White Cheddar, Honey BBQ, and Vegan Salt & Pepper, these puffs are packed with flavor without any of the guilt associated with unhealthy snacks.

Distribution Channel Insights

Sales through supermarkets & hypermarkets accounted for a revenue share of 35.3% in 2023. Consumers increasingly prefer supermarkets and hypermarkets for purchasing better-for-you snacks, as they offer a broad range of better-for-you snacks, including options like organic, gluten-free, and low-sugar products. This extensive selection allows consumers to find a variety of nutritious snacks that meet their dietary preferences and needs. These retail outlets offer a wide variety of nutritious snack options, such as roasted nuts, seeds, and fruits, which cater to the rising demand for convenient and healthy alternatives.

Sales through online stores is expected to grow at a CAGR of 8.2% from 2024 to 2030. The convenience of shopping from the comfort of home, the extensive product selection, and the ability to compare prices and reviews online have greatly attracted consumers. Furthermore, the online channel offers accessibility to consumers in remote or underserved areas. It removes geographical barriers, enabling better for you snack brands to reach a larger audience and expand their global customer base.

Packaging Insights

The bags & pouches segment accounted for a revenue share of 33.5% in 2023. Pouched packaging is designed to keep snacks fresh for longer periods. Many pouches are resealable, allowing consumers to enjoy the snack in multiple sittings while maintaining its freshness and quality. The airtight seal helps preserve flavor, texture, and nutritional value. Also, they are typically portioned in single-serve sizes, which helps with portion control and prevents overeating. This can be particularly useful for those mindful of their calorie intake and looking to maintain a balanced diet.

Canned better for you snacks is expected to grow at a CAGR of 8.3% from 2024 to 2030. Packing better for you snacks in cans is becoming increasingly popular as it meets both manufacturers' needs and consumer preferences. For manufacturers, cans offer the benefit of extending the shelf life of snacks because they are airtight and lightproof, preserving freshness and nutritional value without added preservatives. Furthermore, cans are highly recyclable and have a high recycling rate, making them an environmentally friendly choice.

The recycling process for aluminum and steel cans is efficient, reducing the overall environmental impact compared to other packaging materials. In August 2023, GoodPop, known for its health-conscious frozen treats, introduced its first beverage line, Mini Cans. These 7.5-ounce mini cans blend real fruit juice and sparkling water, made without added sugars, sweeteners, or flavors. Available in Fruit Punch, Orange, and Lemon Lime flavors, each can contains a mere 6 grams of sugar or less.

Regional Insights

The better for you snacks market in North America accounted for a revenue share of over 31.9% in 2023 of the global market. In recent years, North America has seen a significant shift towards healthier eating habits. People are becoming increasingly conscious of their dietary choices, even when it comes to snacking. This awareness has fueled the popularity of better-for-you snacks across the region.

The growing understanding of the importance of a balanced diet and the impact of food on health has driven the consumption of healthier snacks. With the rise in chronic diseases such as obesity, diabetes, and heart disease, consumers are seeking ways to improve their diets and make healthier choices. As a result, there has been a noticeable shift from traditional snacks, which are often high in calories, sugar, and unhealthy fats, to more nutritious alternatives.

U.S. Better For You Snacks Market Trends

The better-for-you snacks market in the U.S. is facing intense competition due to massive product innovation in better for you snacks. Busy lifestyles have led consumers to seek quick and convenient food options, making snacks a preferred choice for on-the-go nourishment. In addition, there is a rising awareness of health and wellness, driving interest in "better-for-you" snacks that offer nutritional benefits without compromising on taste. Consumers are increasingly looking for snacks made with natural, organic, and non-GMO ingredients, reflecting a trend toward cleaner eating. Furthermore, innovative flavors and unique ingredient combinations are appealing to adventurous eaters, adding to the growing demand for healthier snacking options.

In November 2023, Pokimane and cofounder Darcey Macken launched Myna, a healthy snack brand, in response to their previous health issues. Its first product, the Midnight Mini, is a collection of assorted cookies. These cookies are crafted with natural ingredients, without added preservatives, and serve as a gluten-free option for traditional cookies.

Europe Better For You Snacks Market Trends

The better-for-you snacks market in Europe is expected to grow at a CAGR of 8.1% during the forecast period. The increasing health consciousness among consumers has significantly driven the demand for better for you snacks. People are becoming more aware of the benefits of a high-protein diet, such as increased muscle mass, improved metabolism, and enhanced satiety. According to a research survey conducted by Glanbia plc in June 2022 involving 3,000 individuals from Germany, France, Sweden, and Italy, there has been a notable shift away from "less healthy" snacks such as soft drinks, candy, chocolate, and chips toward more nutritious options, such as protein bars. The survey revealed that 46% of respondents view protein bars as a healthy snack, and 16% incorporate snacks-including bars, powders, cereals, and pancakes-into their diets on a weekly basis.

Asia Pacific Better For You Snacks Market Trends

The better-for-you snacks market in Asia Pacific is expected to grow at a CAGR of 8.6% from 2024 to 2030. In Asia Pacific, packaged, better-for-you snacks have gained popularity due to their convenience and portability, meeting consumers' demand for grab-and-go options. The region's urbanization and the growth of well-developed supermarket outlets have driven the shift from traditional street snacks to healthier packaged alternatives. Clean-label snacks and meal-replacing options like frozen and refrigerated products are in high demand. To stay competitive, larger companies are acquiring smaller snacking brands, and even dairy and staples companies are entering the better-for-you snacking industry with easy-to-eat, neatly packed products.

Key Better For You Snacks Company Insights     

The better-for-you snacks market is characterized by dynamic competitive dynamics shaped by a combination of factors including product innovation, regional production capabilities, and evolving consumer preferences. Leading manufacturers invest in R&D and technological advancements to provide cost-effective and quality products.

Market players are entering into joint ventures, partnerships, mergers, agreements, and acquisitions to strengthen their market position and expand their geographical reach. Companies are also focusing on raising consumer awareness of the ambiguity of the ingredients used while strictly adhering to international regulatory standards.

Recent Developments

• In July 2024, Goodveda, a natural healthcare brand, launched a new line of nutritious millet-based healthy baked crunchies called 'Milletious'. These crunchies are lightweight, gluten-free, and have a low-glycemic index. They are available in sugar-free and preservative-free options, made from wholesome ingredients like millets, bajra flour, jowar flour, and wheat flour. The product is offered in four flavors: Gazab Garlic, Hotshot Chilli, Mad Masala, and Masoor Methi, catering to diverse taste preferences.

• In April 2024, The article announced the launch of a new PLANTERS Nut Duos snack line, which combines two types of nuts with two complementary flavors. The three flavor options are Buffalo Cashews and Ranch Almonds, Cocoa Cashews and Espresso Hazelnuts, and Parmesan Cheese Cashews and Peppercorn Pistachios. The new snacks are available nationwide, expanding the PLANTERS brand's portfolio of peanuts, nut mixes, seeds, and other salty snacks.

• In September 2023, Danone UK&I announced a fresh lineup of high-protein dairy snacks under the brand name GetPRO, designed specifically for individuals aiming to optimize their workout regimes. The GetPRO range boasts between 15-25g of protein per serving across its eleven products, which encompass high-protein yogurts, mousses, puddings, and beverages. Notably, these offerings contain no added sugars and are either low-fat or 0% fat, catering to health-conscious consumers.

• In September 2023, Kellanova’s RXBAR brand partnered with podcaster Maria Menounos to launch a limited edition RXBAR ManifX bars with customizable wrappers. The RXBAR ManifX bars are available in Chocolate Sea Salt flavor, made with 12g of protein.

Better For You Snacks Market Report Scope

Global Better For You Snacks Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global better-for-you snacks market report based on product, claim, packaging, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Frozen & Refrigerated

  • Fruits, Nuts & Seeds

  • Bakery

  • Savory

  • Confectionery

  • Dairy

  • Others

• Claim Outlook (Revenue, USD Million, 2018 - 2030)

  • Gluten-free

  • Low-fat

  • Sugar-free

  • Others

• Packaging Outlook (Revenue, USD Million, 2018 - 2030)

  • Pouches

  • Boxes

  • Cans

  • Jars

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Hypermarkets & Supermarkets

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • France

    • Germany

    • Spain

    • Italy

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia & New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa