In snacks, discerning consumers prioritise “green” indulgence. They seek snacks without harmful ingredients and added nutritional value, rooted in ethical sourcing practices. Catering to dietary requirements, the market embraces plant-based and allergen-friendly options. In fact, sustainability is fuelling expansion, with sustainable products retail value sales seeing an 8% CAGR (2020-2023).
Leveraging insights from the AI-powered Passport Sustainability platform, Euromonitor emphasises the need for businesses to adopt transparent sustainability measures. This crucial step not only aids in mitigating risks and adhering to regulations, but also capitalises on the growing consumer preference for sustainable products.
Here are some insights from Euromonitor’s Unlocking Sustainability Opportunities in Packaged Food report.
Redefining indulgence for the conscious consumer
The snack industry is experiencing a marked shift towards healthier alternatives, as consumers look for products offering enjoyable yet guilt-free indulgence, combined with quality, health, and sustainability benefits.
In response, brands keep innovating to reshape their products’ formulations. For instance, PepsiCo continues to expand its USDA Organic and No GMO-certified Simply range, incorporating natural ingredients in popular brands like Lay's, Ruffles, Cheetos and Tostitos. Additionally, the variety of plant-based savoury snacks is broadening, including nutrient-dense ingredients like lentils and whole grains in chips and crackers.
Confectionery is the fastest growing category, recording high single digit sales CAGR growth in 2020-2023
Source: Euromonitor Claims Tracker
In confectionery, major players like Nestlé are addressing sustainability challenges in the cocoa supply chain and recent price hikes. The company is investing in sustainably sourced cocoa, as shown by its new Rainforest Alliance-certified Sustainably Sourced chocolate travel range.
Simultaneously, plant-based cocoa substitutes like carob-based chocolate are gradually gaining traction in snack categories. This eco-friendly solution promises health benefits and a reduction in supply chain emissions.
Transparency beyond health and nutrition, sourcing and waste also matter
The snack industry is actively prioritising natural ingredients and diet-specific labels, with the "vegetarian" claim leading in the global market.
To meet diversified consumer needs, competitors are expanding their vegetarian and vegan offerings. Major retailers like Walmart, CVS, and Carrefour are rapidly strengthening their sustainability-focused private labels, offering natural ingredients and eco-friendly packaging at affordable prices.
Additionally, brands like Clif Bar are emphasising sustainable sourcing and waste management. While the rising demand for allergy-free products also opens opportunities to highlight sustainability efforts, such as reducing carbon footprints in dairy-free products.
Snacks sustainability examples
Consumers seek indulgent snacks that deliver not just on taste and quality, but also on a “good for me, good for the planet” ethos. These are products reduced in sugar, salt, fat and calories, yet fortified with proteins and vitamins, where product sourcing and packaging are also important, alongside reasonable prices.
Private label producers are adapting to evolving consumer needs by providing a variety of indulgent, affordable flavours. For example, German retailer Rewe, for instance, pioneered a fully plant-based supermarket in Berlin, boasting over 2,700 vegan products from nearly 300 brands, including Rewe's own, which spans meat and dairy substitutes to confectionery and snacks.
Meanwhile, Cargill is partnering with Voyage Foods to enhance its B2B offerings with sustainable vegan alternatives for cocoa and nut-based products, which demand less land and water compared to traditional cocoa. This partnership empowers Cargill's clients to bolster their environmental reputation and foster transparent sustainability communication.
Finally, US brand Pipcorn uses heirloom corn to offer a range of natural, non-GMO and gluten-free salty snack products. Rich in fibre and antioxidants, heirloom corn also boosts agricultural diversity with its adaptability to different climates and reduced need for synthetic pesticides.
Learn more about Sustainability in our report, Unlocking Sustainability Opportunities in Packaged Food, and visit our Sustainability page for further insights on where to play and how to win with sustainable claims.