Organic Snacks Market Set to Witness an Uptick during 2020 to 2027
Posted by Mrudula Anil Karmarkar on April 12th, 2021
The global organic snacks market size is expected to reach USD 19.29 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 13.1% from 2020 to 2027. With the growing number of health-conscious consumers, the consumption of organic foods has been rising over the world. These products do not use harmful synthetic fertilizers, which are used for conventional food production. Consumers across the world have been opting for foods, which are manufactured with natural and healthy ingredients free from genetically modified organisms (GMOs).
Snack bars held the largest share of more than 15.0% in 2020. Increasing demand for go-to healthy small serving food has boosted sales of these products. These have become a convenient source of nutrition and sometimes replacement of heavy meal for the millennial and young population owing to their busy schedule. In terms of distribution channels, supermarkets and hypermarkets are expected to dominate the industry throughout the forecast period. Availability of a wide range of products and shopping experience of these retail stores have been attracting consumers over the world. Walmart, Kroger, and Whole Foods are some of the prominent supermarkets operating across the globe.
The industry is characterized by high competition due to the presence of a large number of leading and medium-sized firms across the globe. Companies have been expanding their product portfolio in order to increase their consumer base. For instance, in February 2020, Kashi Company, a U.S.-based organic food company, added chocolate and mixed berry superfood bites to its Kashi by Kids product line. These products are available at nationwide retailers and grocers, including Walmart, Amazon, Whole Foods, and Kroger.
Implementation of new regulations regarding organic certified flavors is expected to enhance the product development of the industry. In 2020, the National Organic Program (NOP), the national regulatory framework of the U.S., published a final regulation regarding certified organic flavors. As per the Organic Trade Association, there are over 4,500 certified organic flavors available in the U.S.
Organic Snacks Market Report Highlights
According to the 2020 Organic Industry Survey by the Organic Trade Association, the sales of the organic food segment have outpaced the total food sales in the U.S. As per the association, this buying behavior is more prominent among the young consumers for both meals and small servings. Furthermore, increasing willingness to buy environment-friendly and premium products, along with the rise in disposable income in the emerging economies, has been widening the growth opportunity for the product over the world. However, the high cost of production may hamper the adoption rate of the product and hence act as a key restraint for the market growth.
Since the outbreak of COVID-19 from January 2020 at the global level, demand for healthy and salty small serving foods has been gaining popularity. According to the US Snack Index published by Frito-Lay in January 2020, 85% of respondents feel normal and 48% feel happy after eating their flavored snack. Furthermore, 92% of consumers of the U.S. intend to continue consuming their favorite snacks after the pandemic. Most of the consumers are willing to try new products, especially Gen Z and millennials. This growing trend is expected to promote the scope of organic snacks even after the pandemic.
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The market is fragmented with the presence of both international and regional players. The industry players have been expanding their businesses by introducing innovative products in their product portfolio. For instance, in August 2017, Horizon Organic, owned by Danone, introduced a new line of snacks called Horizon Organic Good & Go!. The company offers peel-open packaging, which is convenient for school lunches. These are available in three varieties including Cheddar & Pretzels, Cheddar, Raisins, Cashews & Sweetened Cranberries, and Colby & Apple Crisps. Some of the prominent players in the organic snacks market include:
Grand View Research has segmented the global organic snacks market on the basis of product, distribution channel:
Organic Snacks Product Outlook (Revenue, USD Million, 2016 - 2027)
Organic Snacks Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
For More Information:www.grandviewresearch.com
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
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