WORLD – The global landscape of the food industry is rapidly transforming across all fronts and health foods are no longer a niche group – as they are starting to incorporate more mainstream food trends.
While breakfast foods and energy drinks have gained precedence among the masses, fruit snacks are becoming popular and their consumption are expected to continue to grow at a steady clip.
According to a recent report by Fact.MR, these conditions are expected to give the fruit snacks market a lucrative base for growth.
Fact.MR projects that the global fruit snack market will grow at a compounded annual growth rate of over 8.5% and is estimated to reach a value pool of over US$9 billion by the end of the forecast period (2019-2027).
According to the report, 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.
Consumer health conscience has been cited to further motivate food companies to utilize 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, the research house notes that consumer awareness and preferences are further accompanied by an increasing number of government initiatives.
By the end of 2019, North America had an overall market share of more than 25% supported by the increasing millennial propensity for convenience foods with a high nutritional quotient will drive the fruit snacks market in this area.
The report projects that 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%.
Robust growth in the market is expected to be driven by increasing fears about high sugar intake, artificial ingredients and dissatisfaction, with daily indulgence causing Asian consumers to shift towards fruit snacks.
A rapid increase in functional drink consumption due to increased health concerns is also expected to drive the market for fruity beverages such as juice and smoothies in the forecast timeline. Beverages comprised over 35% of the overall market share.
Furthermore, an increasing number of modern retail outlets across all regions, including supermarkets and hypermarkets is also expected to support the segmental share for mainstream distribution channels
“Shifting consumer preference for easy and balanced snacking choices supported by the growing count of supermarkets & hypermarkets is expected to drive the global fruit snacks market” says the report analyst.
Product innovation fueling sales growth
According to the study, 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.
Notably, manufacturers are implementing state-of-the-art manufacturing and packaging techniques to fulfill customer expectations for GMO-free food products and other unhealthy artificial ingredients.
The research cites companies like SunOpta, which invested significant amounts to launch new products, expand their market presence and also reach potential and untapped markets.
Fact.MR said that companies operating in the fruit snacks market will continue to significantly invest on product development programs to meet the needs of current and potential customers as well.