The global fruit snacks market is poised to grow at an impressive CAGR (compound annual growth rate) of over 8.5 per cent, and is estimated to reach a value pool of over $9 billion by the end of the forecast period (2019-2027).
Although breakfast foods and energy drinks have gained precedence among the masses, fruit snacks are becoming popular, and their consumption will continue to grow at a steady clip.
Health foods are no longer a niche group, as they are starting to incorporate more mainstream food trends. These conditions are transforming the landscape of the food industry to give the fruit snacks market a lucrative base for growth.
A pronounced understanding of wellbeing is one of the prevalent trends among top-tier consumers, and one of the main determinants behind healthy food choices and sales of fruit snacks.
This is further motivating food companies to utilise locally sourced, functional and natural ingredients for fruit snacks.
Key takeaways of fruit snacks market
When it comes to heightened global sales of fruit snacks, consumer awareness and preferences are further accompanied by an increasing number of government initiatives.
North America had an overall market share of more than 25 per cent. Increasing millennial propensity for convenience foods with a high nutritional quotient will drive the fruit snacks market in this area.
Asia Pacific will be the most lucrative region for the fruit snacks market during the forecast period with a growth rate of over 5.5 per cent. Growing fears about high sugar intake, artificial ingredients and dissatisfaction with daily indulgence is causing Asian consumers to shift towards fruit snacks.
Beverages comprised over 35 per cent of the overall market share. A rapid increase in functional drink consumption, due to increased health concerns, will drive the market for fruity beverages, such as juice and smoothies, in the forecast timeline.
Mainstream stores hold a dominant market share for fruit snacks. An increasing number of modern retail outlets across all regions, including supermarkets and hypermarkets, etc., will support the segmental share for mainstream distribution channels.
E-commerce giants are including active food catalogues on their websites, which again provide more exposure to food snack products, because they do not have to compete for a physical space on the grocery shelves.
"Shifting consumer preference for easy and balanced snacking choices supported by the growing count of supermarkets and hypermarkets is expected to drive the global fruit snacks market," said the Fact.MR analyst.
Product innovation fuelling sales growth
The global fruit snacks market is consolidated in nature with a few major food companies such as Kellogg Co and General Mills acquiring the top shares.
Manufacturers are implementing state-of-the-art manufacturing and packaging techniques to fulfill customer expectations for GMO- (genetically-modified organisms) free food products and other unhealthy artificial ingredients.
Companies operating on the fruit snacks market are paving the way for product innovation by investing enormous amounts in product development programmes to meet the needs of current and potential customers as well.
For example, companies like SunOpta invested enormous amounts to launch new products to expand their market presence and also reach potential and untapped markets.
Find more valuable insights on the market
Fact.MR, in its new offering, provides an unbiased analysis of the global market for fruit snacks, with historical data on demand (2013-2018) and expected projections for the period (2019-2027).
The report disclosed compelling insights into the demand for fruit snacks based on nature (organic and conventional), product type (sweets and savouries, dairy products and beverages) and distribution channels (modern trade, specialty stores, convenience stores, online stores, departmental stores/mom-and-pop stores, drug stores and pharmacies and travel retails) across several major regions.