Cottage cheese ice cream. Probiotic cookies. More on-the-go veggie chips. Just what is going on in the snack category these days?<\/p>\n
As the Advantage Solutions Outlook quarterly survey of CPG manufacturers and retailers notes, the vast majority of CPG innovation happening today is focused on the health and wellness space \u2014 and nowhere is this more evident than in the multibillion-dollar snack category.<\/p>\n
\u201cNatural and better-for-you snacks, ranging from salty snacks and bars to dairy and beverages, appeal to consumers\u2019 growing health and well-being needs \u2014 whether supporting mental well-being, weight control, immunity, gut health or other concerns,\u201d says Jill Blanchard, president, enterprise client solutions at Advantage Solutions. \u201cWhat we are seeing in 2023 is what I call the \u2018great wellness reset,\u2019 where, for instance, natural brands and healthier options are driving snack growth \u2014 even outpacing growth for conventional snack products.\u201d<\/p>\n
Take cottage cheese, for example. The longtime mainstay for dieters and older consumers has emerged as a nutritional meal or snacking alternative, showing up in single-serve fruit cups, dips, spreads and other surprising food items such as ice cream, cookies and more. Younger consumers, drawn by a viral barrage of cottage cheese videos and recipes, have given new life to the dairy staple \u2014 with more than 700 million views on TikTok alone. That translates into more sales.<\/p>\n
And it\u2019s not just cottage cheese. \u201cIf you look at what\u2019s happening broadly, social media is really disrupting the category,\u201d Blanchard explains. \u201cGen Z, in particular, spends a lot of time watching videos on TikTok, YouTube Shorts, Instagram Reels, and what happens in those videos directly impacts retail sales. In many cases that impact on sales lasts well beyond the initial spark of interest \u2014 or a video going viral.\u201d<\/p>\n
Younger generations are leading the better-for-you snack trend, signaling that retailers and manufacturers can expect to see growth in this category in the years ahead. More than just cleaner ingredients and enhanced health and wellness benefits, other trends such as single-serve packaging and an increase in online sales for natural and healthier snacks also indicate growth in this segment with younger consumers, who can easily search different health benefits to find suitable snacks.<\/p>\n
Over the years, retailers have leaned into the low-fat chapter, the low-sugar chapter, the low-carb chapter, the organic chapter, the gluten-free chapter and more. All were consumer-driven.<\/p>\n
\u201cEach chapter gets a little more complex and comprehensive with new wellness needs added versus replacing the old ones. More than a third of consumers today buy snacks to support a specific diet they\u2019re following, whether that\u2019s gluten-free, Keto, Paleo or whatever. Today\u2019s consumers in all demographics want all-natural, high protein, low sugar and low carb \u2014 all in the same product,\u201d Blanchard says.<\/p>\n
\u201cWe\u2019re seeing specialty cookies that offer adaptogenic and gut health benefits as a great example. These are benefits and claims we haven’t seen used in some of these categories before,\u201d she explains. \u201cWe expect a lot of the excitement and novelty in snacking to be driven by unique better-for-you innovation in the next few years.\u201d<\/p>\n