Global Fruit Snacks Market: Rise in purchasing power and growing consumer preference toward healthy and ready-to-eat convenience food items primarily driving the market.

Published Date: 10/05/2021

The global fruit snacks market size was valued at USD 5.61 billion in 2020 and is expected to reach USD 9.20 bilion at a compound annual growth rate (CAGR) of 7.7% from 2020 to 2027. The growing demand for better-for-you foods among the health-conscious millennial consumers has been driving the market. Consumers have been opting for healthy treats to consume these between their meals, sometimes as meals. Furthermore, with the rising preference for convenience food products due to the consumers' busy lifestyle, the sales of ready-to-eat healthy foods are expected to increase remarkably over the next few years. Vegetable and fruit-based foods that provide nutritional benefits without compromising on texture and taste are gaining traction among all the age groups, including kids, millennials, and Generation X, across the globe. Moreover, the rising purchasing power of the consumers is allowing them to opt for premium and exotic products. Therefore, the demand for health benefit claims, such as organic and non-GMO, along with exotic tropical flavors, has been rising over the years.

Furthermore, the industry manufacturers have been introducing new products by incorporating different forms of fruits, such as freeze-dried pieces, pastes, powders, and juice drops, to meet the rising demand. These products are a good source of vitamins and minerals available in a ready-to-eat form for the consumers having a tight schedule. The freeze-dried form of the product can retain most of its natural and nutritional properties even after processing. According to a study on the positive effects of a healthy snack (fruit) versus an unhealthy snack published by Andrew P Smith and Rosannagh Rogers, it is proven that healthy snacks consisting of fruits and vegetables are correlated with better mental health. These healthy eating habits can be beneficial for reducing depression, fatigue, and emotional distress. With the rising number of consumers with unhealthy mental wellbeing, the demand for fruit snacks is expected to increase over the new few years.

The mixed fruit snacks segment held the largest share of more than 20.0% in 2019. Products of key producers such as Welch's, Kellogg NA Co., and Mott's LLP have gained traction among the consumers. In June 2019, Bare Snacks launched two crunchy baked chips, Medley Apple Chips & Strawberry Chips and Medley Pineapple Chips & Coconut Chips. These two mix chips combinations offer a sweet taste, which is perfect for summer.

The supermarkets and hypermarkets segment led the market and accounted for more than 50.0% share of the global revenue in 2019. The availability of a wide range of products and special discounts and offers have attracted consumers to buy from this distribution channel. In addition, improved services of these stores, including home delivery and Click and Collect benefits, have contributed to the segment growth. Walmart, Costco, Lidl, Publix, and 7-Eleven are the key supermarket and hypermarket chains over the world.

The sweet and savory segment held the largest revenue share of more than 45.0% in 2019. This segment includes a diverse range of products, including chips, trail mixes, and gummies. Companies have been expanding their sweet and savory portfolio by introducing low-calorie, sugar-free, all-natural ingredients, and organic products. Furthermore, trail mixes with seasoning, exotic flavoring, and coatings have been gaining popularity over the years. Figs, prunes, dates, berries, and apricots are gaining utility in trail mixes. These on-the-go products are rich in antioxidants and they help in boosting energy. In May 2019, AriZona Beverages USA launched AriZona Fruit Snacks made with mango, grape, orange, and watermelon. The product contains vitamin C and is free from gluten and fat.

The fruit snacks water market is segmented on the basis of fruit, distribution channel, product and region. By distribution channel, the market is divided into Supermarkets & Hypermarkets, Convenience Stores, Specialty Food Stores, Online Retailers, Others. By fruit, the market is divided into Apple, Mango, Banana, Pineapple, Berries, Mixed, Others. By product, the market is divided into Sweet & Savory, Smoothies, Dairy, and Cuts & Slices.

North America led the market and accounted for more than 35.0% share of the total revenue in 2019. The majority of the consumers have these snacks to satisfy their hunger between meals, fulfil a craving, and gain nutrition. The U.S. holds a major share in the North American market. The demand for on-the-go or ready-to-eat foods is significantly high in the region, especially among the younger and multicultural population groups. As a result, such snacks are gaining larger shelf space in the retail stores over the past few years.

Asia Pacific is expected to register the fastest CAGR of 10.3% from 2020 to 2027. This region holds a potential growth opportunity due to the increasing per capita consumption and the expanding population. Furthermore, a growing number of middle-class households and rising health consciousness among the consumers are expected to fuel the demand for fruit snacks.

Key market players are: Sunkist Growers Inc.; SunOpta; General Mills Inc.; Welch's; Kellogg NA Co.; PepsiCo; Chaucer Foods Ltd.; Crispy Green Inc.; Mount Franklin Foods; Nutty Goodness, LLC.