Snacks in Australia

Snacks in 2025: The big picture

The snacks market in Australia has seen mid-single digit growth in 2025 in current value terms, following similar growth in 2024. Australian consumers are avid snackers, favouring both sweet and savoury choices to complement their diets, either as an indulgent treat or a nutritional energy boost throughout the day. The idea of an indulgent treat has become especially appealing among consumers due to the higher cost of living and limited spending on discretionary items. This is a result of the so-called lipstick effect whereby consumers will continue to make discretionary purchases but of a lower value when the more expensive forms of indulgence and entertainment are unaffordable. Snacks are also positioned as impulse purchases at offline retailers, which use price discounts and specials to encourage consumers to make the purchase. This has helped fuel demand as consumers have looked for more affordable forms of indulgence.

Key trends in 2025

Another key trend driving the performance of snacks in Australia is the increasing presence of Asian brands and snacks. While most consumers are familiar with the mainstream international brands from companies like Mondelez and Smiths Snackfoods there has been growing interest from consumers in trying new types of snacks from countries like Japan, South Korea and China. The trend is rooted in the expansion of Asian groceries in the Australian market, which is introducing many local consumers to innovations in the snacks market that were previously inaccessible in the country. Over the last few years of the review period, many of these brands which are new to the Australian market have also become present at Coles and Woolworths, the country’s major chains of supermarkets. Both retailers have significantly expanded their range of international food and drink options, including a variety of both sweet and savoury snacks from Asia. This has further enhanced the capacity of these brands to reach as many consumers as possible as the majority of Australians do their shopping at these supermarkets and they are seen as one of the most reliable methods of discovering new products in the market.

Competitive Landscape

Mondelez remains the largest company within the snacks market Australia in 2025, followed by Arnott's Biscuits and Smiths Snackfoods. Mondelez is the owner of iconic brands including Cadbury, Oreo and The Natural Confectionery, among others. Familiarity with these brands continues to drive consumer choice to a significant extent, ensuring Mondelez maintains its leading position. International companies like Mondelez also rely heavily on new product development and it launches new SKUs on a regular basis to drive value and volume growth. New product launches are an important strategy for snacks, with these helping to draw more attention to a particular brand and also encouraging consumers to purchase them as soon as possible due to the limited nature of many product launches.

Channel developments

Supermarkets is the leading distribution channel for all categories of snacks in Australia. Most consumers continue to shop for their groceries through offline channels for their groceries, which is suited to the impulse positioning of most snacks. Supermarkets have new products on discount every week which helps drive volume growth for snacks, with these promotions often becoming one of the drivers of growth in the channel. During seasonal events like Christmas and Easter, supermarkets will transform their stores to highlight the new snacks products that have been launched specifically for these holidays, ensuring the impulse to buy is always present for consumers.

What next for snacks?

Sales of snacks are projected to continue on a steady growth path over the forecast period. Snacking makes up a significant aspect of consumers’ lifestyles in Australia despite the category facing some challenges due to inflation and reduced consumer spending. Consumers will continue to seek out the best value for money, but other factors will also shape how they spend their money. Snacks with nutritional benefits will be high in demand as consumers look to maintain a balanced diet and find more ways of getting their required nutrients. Snacks with protein claims have already shown strong potential in this market. The forecast period will see more brands trying to deliver on providing consumers with healthier alternatives to their favourite snacks. Nonetheless, consumers will remain unlikely to compromise on taste, especially when seeking a moment of indulgence. Therefore, brands will have to find that balance between focusing on health and wellness while also giving consumers an enjoyable experience.