Recent market research shows that Americans are consuming more snacks, but the concept of snacks is quietly changing. People are increasingly fascinated by snacks rich in protein and cheese, making snacks the future of American cuisine.
According to Bloomberg, the opportunity for further growth in the snack market prompted Kellogg to abandon its struggling North American cereal business in 2023 and focus on the high-growth snack business. This includes brands like Pringles, Cheez-It, and Rice Krispies Treats, which have been rebranded under the new name Kellanova.
This strategy has paid off, as in August, candy giant Mars Inc. announced its acquisition of the independent snack company for $36 billion. Peanut butter and jelly manufacturer JM Smucker Co. also saw the potential in the snack industry, acquiring Hostess for $5.6 billion in 2023. Last month, Bloomberg News reported that Oreo manufacturer Mondelez International Inc. is attempting to acquire Hershey Co. to create a global snack powerhouse.
Research group Mintel surveyed consumers in November 2023, with approximately 86% stating that they are eating the same amount or even more snacks compared to the previous year. The group’s 2024 report revealed that 22% of consumers snack three times or more a day, almost constantly eating something.
However, in the last quarter, snack sales for all of the aforementioned companies declined. Despite people snacking as much as before or even more, there are deeper reasons behind the grim performance of the North American snack industry. Sally Lyons Wyatt from market research company Circana pointed out that “what you think of as snacks has changed.”
For many consumers, snacks are no longer just about salty and sweet temptations, but more like a nutritious mini-meal.
Circana’s data indicates that in the year leading up to December 1, 2024, sales of refrigerated meats, cheese, and crackers increased by 12%. Conagra Brands, a company producing frozen, refrigerated, and snack foods, reported strong performance from its three meat stick brands: Slim Jim, Duke’s, and Fatty. According to consumer data company Numerator, high-end grass-fed meat stick startup Chomps is currently the fastest-growing food brand in the United States. Chomps forecasts retail sales to surpass $1 billion next year.
One of the most surprising trends in high-protein snacks stems from the 1970s – cottage cheese. Sales of cottage cheese grew by 12.7% in the year leading up to December 1, 2024, with many describing it as a new type of Greek yogurt.
To attract health-conscious consumers, the startup company Good Culture offers single-serve cups with fruit at the bottom, free from preservatives, gelatin, and other unidentifiable additives, presenting this chunky, curd-filled dairy product in its purest form. Founder Jesse Merrill stated that the company predicted a growth rate of 35% in 2023, but actually experienced an 85% increase, reaching $100 million in sales. By early November 2024, they had nearly replicated the same growth rate.
Just as snacks can be a meal, a meal can also be a snack. Frozen handheld dinners like Mexican burritos are another category Circana now includes in the snack column, with Americans purchasing approximately 12% more of these foods within a year.