Sweet snacks are a solution to the many needs of modern consumers, whether between meals or as their replacement; the business potential of sweet snacks in the near future is huge. There are 5 main reasons that can explain this:
- Growing urbanization
- More single households
- Rising spending power and of the middle class
- Busier lifestyles
- Consumption capacity of millennials
Today, sweet snacks make up 21% of global packaged food sales. Confectionary, cakes, ice cream, sweet biscuits and pastries are among the segments included in this category that stand out in the industry due to their high profit margins.
It is a dynamic and versatile market. Consumers choose to eat snacks in several situations, whether while sitting on a bench at the square, while walking, watching television, at the movies, or simply while working in front of a computer screen.
In Asia-Pacific, pastries are the leading category, and Western-Style bakeries have become very popular. You can even find them in-store at the supermarkets and also as a cheap alternative for the low income population. Meanwhile, in Western Europe, confectionary is the leading category, mainly driven by the consumption of chocolate tablets.
Some global companies are already setting their eyes on this trend and know that consumers want the best of both worlds: a tasty and nutritious snack. This is why products with healthy ingredients such as oats, grains and fruits are strong performers, both as “fuel” between meals or as a replacement.
Millennials are a key target group for the food industry in general and especially for those entering the sweet snack business. Healthy snacks make up an integral part of their diet and are often chosen to replace meals.
The United States is one of the most active markets in launching new products, ideas, and in updating and improving traditional products, such as nutrition bars, which in the past few years have been transformed, leaving aside the tasteless products that had placed the category in a very limited category. Producers had to change their strategy to attract with tasty, functional and accessible products. To call the American consumers’ attention, they have to offer products that did not have the characteristics of what in Latin America is known as “junk food.”