OPINIO
Trade4go
Aug 28th, 2024
Original content
Host: Benjamin Lategan - Global Market Analyst - South Africa
Speakers: Gabriela Cabezas - Global Market Analyst - Ecuador
Nicole Barlow - Account Executive Leader - Africa
Lei Wang - Market Intelligence Analytics - China
Agenda:
In its August webinar, Tridge experts presented an in-depth exploration of the evolving market trends in chips, cookies, and crackers, focusing on the transformative impact of functional ingredients. As consumer preferences shift towards healthier options, the industry innovates with natural ingredients, reduced sugar, and gluten-free alternatives. This webinar explored how functional ingredients such as protein, fiber, and probiotics enhance the nutritional value of these popular snacks. Tridge experts shared insights about the latest trends, innovative product developments, and successful strategies for meeting the growing demand for healthier snacks.
The market for cookies, crackers, and chips is evolving, driven by diverse consumer preferences and health-conscious trends. Cookies, sweet baked goods traditionally made from flour, sugar, fat, and flavorings like chocolate or nuts, are now available in various types, including gluten-free and vegan varieties, catering to a broad and diverse audience. Crackers, known for their thin and crisp texture, are typically made from flour and water and flavored with salt, herbs, or cheese. The market for crackers has expanded to include health-oriented options such as whole grain and gluten-free varieties. Chips, commonly made from thin slices of potatoes that are deep-fried or baked until crunchy, remain a popular global snack, with the market offering a wide range of alternatives, including corn, sweet potato, and lentil chips.
The healthy snack market is experiencing significant growth, projected to expand from USD 96.58 billion in 2023 to USD 152.5 billion by 2030, with a forecasted value of USD 102.95 billion in 2024, reflecting a compound annual growth rate (CAGR) of approximately 6.76%. Consumers are increasingly gravitating towards products with clean labels, favoring simple, recognizable ingredients without artificial additives or preservatives. Transparency in sourcing, production processes, and ingredient origins is becoming more crucial, as brands that communicate these aspects tend to earn greater consumer trust. Additionally, there is a growing demand for sustainable packaging, with biodegradable or recyclable materials gaining popularity as environmental concerns rise. The demand for on-the-go snacks is also increasing, driven by busy lifestyles that favor convenient, portable options, such as single-serve packaging and resealable packs.
Figure 1. Healthy Snacks Global Market Value
Source: Statista
Brands are increasingly experimenting with alternative flours and grains, such as chickpeas, lentils, quinoa, and cauliflower, to cater to consumers seeking gluten-free, high-protein, or low-carb options. This trend extends to a variety of snacks, including cookies, chips, and crackers.
In the cookie sector, functional additives like probiotics, prebiotics, fiber, and omega-3 fatty acids are incorporated to support digestive health and immunity. Innovations in natural sweeteners such as monk fruit, stevia, and allulose are also used to reduce sugar content without sacrificing flavor. Additionally, blending sweet and savory flavors, such as sea salt chocolate chip cookies, is gaining popularity.
When it comes to chips, the rise of plant-based diets has led to the creation of healthier alternatives made from vegetables and legumes, including beetroot and kale chips. The keto diet trend has also spurred the development of low-carb, high-fat keto chips, often made with almond or coconut flour.
For crackers, brands are introducing unique and exotic flavors inspired by global cuisines, such as sriracha, matcha, kimchi, and wasabi. The blending of flavors, like maple bacon crackers, appeals to adventurous consumers and offers new taste experiences.
Adaptogens, such as ashwagandha, ginseng, and Rhodiola, are incorporated to help manage stress and improve mental clarity. At the same time, nootropics like Ginkgo biloba, L-theanine, and caffeine aim to enhance cognitive function, memory, and focus. Superfoods like matcha, maca, and spirulina are added for sustained energy and are mainly marketed to athletes. High-fiber snacks, often made with whole grains, seeds, and legumes, promote digestive health, while gut-healing ingredients like ginger, turmeric, and collagen are included to support gut health and reduce inflammation. Antioxidant-rich snacks featuring ingredients like berries, dark chocolate, or green tea support immune function and protect against oxidative stress.
Some snacks contain immunity-boosting ingredients such as Vitamin C, Vitamin D, zinc, and elderberry. Examples of such products include:
The panel discussion continued to the presentation and started with answers from speakers Nicole Barlow and Lei Wang. Wang opened the panel discussion by tackling the most significant trends driving the demand for healthier chips, cookies, and crackers. According to Wang, consumer health awareness drives significant changes in the snacking industry as more people seek products that promote better health outcomes, such as those low in sugar, sodium, and unhealthy fats. The clean label movement has also gained traction, with consumers favoring snacks made from simple, natural ingredients without artificial additives. Additionally, the rise of specialized diets like keto, paleo, gluten-free, and vegan has spurred innovation in chips, cookies, and crackers to meet the growing demand for products that align with these specific dietary preferences.
Barlow added that there is a shift towards mindful eating, where consumers are increasingly conscious of their food choices, particularly in snacks. Brands like Nature's Choice from South Africa are responding with high-protein, gluten-free options made from chickpeas and lentils, catering to the demand for vegan and vegetarian products. On the other hand, brands like Ubuntu Snacks from Kenya are gaining popularity with products that cater to specific dietary needs, such as keto and paleo. Barlow added that another key trend is the move towards clean labels, with consumers preferring snacks made from natural ingredients and free from artificial additives. Social media platforms like Instagram and TikTok amplify these trends. However, these are not just trends but are becoming mainstream as consumers prioritize snacks that align with their health goals.
In discussing the key challenges companies face when transitioning to healthier snacking options, Barlow emphasized that in transitioning to healthier snacks, flavor is a primary concern. Companies must ensure that using more nutritious alternatives, like stevia instead of refined sugar, does not compromise flavor. A notable example is Futurelife’s high-protein, low-glycemic index bars, which involved extensive research and development (R&D) to balance taste while maintaining nutritional benefits.
Sourcing high-quality, sustainable ingredients is another challenge, particularly when scaling up, as seen in Rooibos Ltd's efforts to maintain organic certification Rooibos, which integrates tea into its snacks, faces challenges in maintaining organic certification while scaling. This is where supply chain management becomes crucial. Companies need to ensure they can source these premium ingredients consistently without driving up costs too much.
Pricing is also a hurdle, as healthier ingredients are often more expensive, requiring brands like Simple Truth to find cost-effective solutions. Brands like Simple Truth have found a middle ground by offering high-quality, healthier snacks at a more accessible price point, but this often involves creative sourcing and production strategies. Consumer education is crucial, as there is still confusion about what constitutes a 'healthy' snack. Brands like Eat Real in the UK, which is gaining traction in South Africa, are doing a great job with clear labeling and marketing that explains the benefits of their products. But it’s a continuous effort to build that trust with consumers.
Additionally, shelf life is a concern, especially for snacks without preservatives, prompting solutions like eco-friendly packaging from Faithful to Nature to maintain product quality. Wang pointed out that, in general, maintaining taste and texture in healthier snacks is a significant challenge, as reducing sugar, salt, and fat often requires extensive R&D to ensure the product still appeals to consumers. Additionally, using healthier ingredients like whole grains and natural sweeteners increases production costs, making it harder to offer competitively priced products. The complexity of sourcing specialty ingredients, such as non-GMO and organic options, further complicates the supply chain, as companies must ensure consistent quality and availability while managing these complexities.
Finally, in discussing the future of healthy snacking and emerging trends or innovations on the horizon, Wang continued with anticipation that the future of healthy snacking is centered on functional ingredients that provide specific health benefits, such as protein, fiber, probiotics, and adaptogens, catering to wellness and immunity.
Alternative proteins like chickpeas and lentils, along with ancient grains such as quinoa, are expected to grow, appealing to those seeking sustainable, plant-based options. Additionally, the plant-based and free-from trends will continue to expand, with increasing demand for snacks that are both healthy and free from common allergens.
Barlow concluded that there are several exciting trends that will shape the future of healthy snacking. Personalized nutrition is gaining traction, with companies like Yummy Mummy in South Africa offering custom snack boxes tailored to individual dietary preferences, and the potential for technology to create snacks based on DNA or gut microbiome is on the horizon. Functional ingredients are becoming more popular, with brands like RUSH Nutrition incorporating adaptogens and nootropics into their snacks to support physical and mental well-being.
Sustainability is also a key focus, with companies like Sundial in Ghana using upcycled ingredients to create eco-friendly snacks. Additionally, there’s a growing crossover between different food categories, for example, protein cookies and veggie chips, leading to innovative products like Wazoogles Superfood’s smoothie bombs that combine protein, superfoods, and natural sweeteners. These trends point to a promising future for healthy snacking, emphasizing personalization, functionality, sustainability, and innovation.
Click here to view the webinar recording, or click here to see the presentation slides.
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