Rising Awareness for Consumption of Healthy Foods
Consumers around the globe are shifting their preferences for the food they eat. Owing to rising concerns for health diseases worldwide and the rising awareness by health organizations of various economies globally, consumers are preferring for food products that are tasty, healthy and have low or no side-effects, for instance, on-the-go breakfast cereals, dry yogurt, liquid breakfast products, probiotics dietary supplements, nutrition for infants, and others. All of these factors are raising the demand for healthy foods, one such being in the healthy snacks segment, which is inducing food manufacturers in providing healthy foods which has controlled nutritional value and are easily consumable by consumers. In a study by the WHO, the WHO Member States have agreed to reduce salt intake by 30% by 2025 for the global population. Furthermore, they have also agreed to stop the rise in diabetes, obesity in adults, adolescents and overweight in children by the year 2025.
Rising Household Disposable Income of Consumers
Concern for good food and health is only possible with the improvement in purchasing power and rise in the disposable incomes. With the increase in household disposable income observed across nations, preferences for healthy foods have grown multifold. Effect of modernization, coupled with rising disposable income, all of these factors are anticipated to act as the primary growth stimulant for the global healthy snack market during the forecast period. According to Organisation for Economic Co-operation and Development (OECD), household disposable income in the USA increased from 45967 USD/Capita in the year 2014 to 50292 USD/Capita in the year 2017.
According to the World Health Organization (WHO), obesity around the globe has nearly tripled since 1975. Moreover, more than 1.9 billion adults were reported to be overweight, out of which over 650 million were obese. According to the National Diabetes Statistics Report (2017) of the Centers for Disease Control and Prevention (CDC), U.S. Department of Health & Human Services, 30.3 million people in the U.S. or around 9.4% of the U.S. population have diabetes. Moreover, the WHO estimated that around 1.6 million deaths in the year 2016 were directly caused by diabetes.
The global healthy snacks market is observing vibrant growth on account of growing concerns for health diseases amongst the rising population around the globe. Unhealthy food habits and bad lifestyle amongst the population is leading to higher risk of obesity, depression, digestive issues, heart disease & stroke, type 2 diabetes, cancer and most importantly early death. Owing to such a factor, people are shifting their focus towards healthy snacking, which is anticipated to drive the growth of the global healthy snacks market. CLICK TO DOWNLOAD SAMPLE REPORT
The market is anticipated to record a CAGR of around 5.21% throughout the forecast period, 2019-2027. The global healthy snacks market is segmented by distribution channel into hypermarkets, supermarkets, specialty stores, online stores and convenience stores, out of which, online stores segment is anticipated to hold the largest market share on the back of rise in the number of individuals using the internet, which is also impacting the consumer buying behavior. With businesses having their 360-degree presence, consumers are shifting towards online shopping. According to United Nations Conference on Trade and Development (UNCTAD), online shoppers globally increased from 1078 million in the year 2015 to 1342 million in the year 2017. Moreover, according to The World Bank, individuals using the internet in USA increased from 71.40% of global population in the year 2013 to 87.27% of global population in the year 2017.
Volatile Price of Raw Materials & Strict Regulatory Norms
Manufacturing of healthy snacks is dependent on the availability of agricultural raw ingredients. Frequent fluctuations in the price of these raw materials raises the cost of the end product, which is anticipated to hamper significantly towards the growth of the market. Moreover, strict regulatory norms for segmenting the food product under the healthy food category is anticipated to restrict the growth of the global healthy snack market.
Our in-depth analysis of the global healthy snack market includes the following segments:
By Product Type
By Distribution Channel
On the basis of regional analysis, the global healthy snack market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is expected to hold significant market share on the back of preference for the consumption of snacks as an alternative for regular meals. Furthermore, concern for health and preference for healthy substitutes is raising the demand for products which are not just limited to its availability in different forms and flavors, but also are available with attractive packaging. Moreover, existing players are promoting their products by providing larger discounts, thereby luring greater number of consumers shift to their products. Such a factor is also anticipated to raise the consumption of healthy snacks amongst the consumers in the region. All of these factors are expected to contribute significantly towards the growth of the healthy snacks market in the region.
The global healthy snacks market is further classified on the basis of region as follows:
Tyson Foods, Inc. have launched a new brand, Pact®, which is a refrigerated snack bites with functional benefits.
PepsiCo, Inc. have announced the acquisition of a U.S.-based nutrition-forward company, Health Warrior, Inc., so as to expand its presence in the nutrition bar category.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Anil Kumar, Ipsheeta Dash