Organic Snacks Market Size, Share & Trends Report

Organic Snacks Market Size, Share & Trends Analysis Report By Product (Grain, Nut-based, Meat, Bars, Frozen, Vegetable & Fruit, Bakery), By Distribution Channel, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-837-4
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 80

Report Overview

The global organic snacks market size was valued at USD 7.21 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 13.1% from 2020 to 2027. Rising health consciousness among consumers has been boosting the consumption of organic foods across the globe. Furthermore, the buyers have been opting for such natural foods in order to avoid the harmful impact of the synthetic fertilizers used in conventional nutritional products. Over the past few years, the presence of natural and healthy ingredients in the small serving foods has been playing a key role in promoting the importance of snacking among millennials and kids. Increased spending on organic farming in several developed nations, such as the U.S., Canada, and Australia, is one of the major factors driving the market. These products are produced organically by utilizing organic-certified raw materials, which are free from genetically modified organisms (GMOs) and artificial additives. These foods contain several healthy and nutritious ingredients, including vitamins, minerals, and proteins.

U.S. organic snacks market size

Implementation of new regulations regarding organic certified flavors is expected to enhance the product development of the industry. In 2019, the National Organic Program (NOP), the national regulatory framework of the U.S., published a final regulation regarding certified organic flavors. As per the Organic Trade Association, there are over 4,500 certified organic flavors available in the U.S.

According to the 2019 Organic Industry Survey by the Organic Trade Association, the sales of the organic food segment have outpaced the total food sales in the U.S. As per the association, this buying behavior is more prominent among the young consumers for both meals and small servings. Furthermore, increasing willingness to buy environment-friendly and premium products, along with the rise in disposable income in the emerging economies, has been widening the growth opportunity for the product over the world. However, the high cost of production may hamper the adoption rate of the product and hence act as a key restraint for the market growth.

Since the outbreak of COVID-19 from January 2020 at the global level, demand for healthy and salty small serving foods has been gaining popularity. According to the US Snack Index published by Frito-Lay in January 2020, 85% of respondents feel normal and 48% feel happy after eating their flavored snack. Furthermore, 92% of consumers of the U.S. intend to continue consuming their favorite snacks after the pandemic. Most of the consumers are willing to try new products, especially Gen Z and millennials. This growing trend is expected to promote the scope of organic snacks even after the pandemic.

Distribution Channel Insights

Supermarkets and hypermarkets accounted for a share of more than 35.0% in 2019. These distribution channels are the most common retailers across the globe as they provide a wide range of food and household products. The impulsive food purchases at the checkout counters in supermarkets have been contributing to the growth of this distribution channel.

Online retailers are expected to witness the fastest growth during forecast years with a CAGR of 14.9% from 2020 to 2027. The wave of smartphone usage over the world, along with low-cost internet provision, has been fueling the growth of online retailers. These online shopping platforms have been expanding their reach to potential customers in Tier II and III cities across the world. In addition, the coronavirus pandemic has changed the buying behavior of the consumers with many consumers buying through online channels.

Product Insights

Snack bars led the market and accounted for more than 15.0% share of the global revenue in 2019. Increased awareness about fitness and health has boosted the demand for go-to healthy snacks with high nutritional value. These products have been replacing heavy meal owing to the busy lifestyles and growing number of nuclear families in developed nations.

Over the past few years, bars containing cereals, fruits, and nuts have been gaining popularity among health-conscious consumers. Granola or muesli bars are the most popular bars in the industry. Furthermore, with the expanded penetration of frozen food items, the product category has witnessed significant growth over the world. Frozen meatballs, hot dogs, sausages, cheese sticks, nuggets, French fries, fillets, and patties have been gaining traction in the quick service restaurants (QSR), cafes, and fast-food chains.

Global organic snacks market share

The bakery snacks segment is expected to register the fastest CAGR of 13.8% from 2020 to 2027. Cookies have been gaining popularity in the emerging economies, such as China and India, owing to their expanding availability. Healthy ingredients such as oats and digestive ingredients have been increasing the popularity of cookies. Furthermore, over the past few years, demand for gluten-free cookies that are high on energy has been rising significantly over the world. The vegetable and fruit snacks segment is expected to witness steady growth over the forecast period. Berries, papayas, avocados, mangos, and brussels sprouts are gaining traction, along with the common snacks derived from carrots, apples, and bananas.

Regional Insights

North America held the largest share of over 40.0% in 2019. Growing health-conscious population, rising urban population, increasing middle-class spending, and escalating functional food demand are the key factors contributing to the growth of the market in the region.

Asia Pacific is expected to register the fastest CAGR of 14.0% from 2020 to 2027. Rising consumption and demand for organic foods in the emerging Asia Pacific countries, including China, have been significantly fueling the growth of the market. In addition, changes in lifestyle and diet, along with growth in income, further boost the demand for organic snacks in the region. Furthermore, increasing the expansion of large retail chains, such as supermarkets and hypermarkets, in the developing nations of Asia Pacific is enhancing the availability of the products, and hence propelling the product demand.

Key Companies & Market Share Insights

The market is fragmented with the presence of both international and regional players. The industry players have been expanding their businesses by introducing innovative products in their product portfolio. For instance, in August 2017, Horizon Organic, owned by Danone, introduced a new line of snacks called Horizon Organic Good & Go!. The company offers peel-open packaging, which is convenient for school lunches. These are available in three varieties including Cheddar & Pretzels, Cheddar, Raisins, Cashews & Sweetened Cranberries, and Colby & Apple Crisps. Some of the prominent players in the organic snacks market include:

  • Danone

  • Hain Celestial Group

  • General Mills Inc.

  • Made in Nature

  • Frito-Lay, Inc.

  • Conagra Brands, Inc.

  • Simply Natural LLC

  • NAVITAS ORGANICS

  • Hormel Foods Corporation

  • Kadac Pty Ltd.

  • Woodstock Farms Manufacturing

Organic Snacks Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 9.51 billion

Revenue forecast in 2027

USD 19.29 billion

Growth Rate

CAGR of 13.1% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Germany; U.K.; France; China; India; Brazil

Key companies profiled

Danone; Hain Celestial Group; General Mills Inc.; Made in Nature; Conagra Brands, Inc.; Simply Natural LLC; NAVITAS ORGANICS; Frito-Lay, Inc.; Hormel Foods Corporation; Kadac Pty Ltd; Woodstock Farms Manufacturing

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. Grand View Research has segmented the global organic snacks market report on the basis of product, distribution channel, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2027)

    • Grain Snacks

    • Nut-based Snacks

    • Meat Snacks

    • Snack Bars

    • Frozen Snacks

    • Vegetable & Fruit Snacks

    • Bakery Snacks

    • Others

  • Distribution Channel Outlook (Revenue, USD Million, 2016 - 2027)

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Food Stores

    • Online Retailers

    • Others

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

    • Europe

      • Germany

      • The U.K.

      • France

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

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