Fruit Snacks Market to Grow at a CAGR of 7.8% to reach US$ 9,174.86 Mn from 2019 to 2027

[Research Report] The fruit snacks market was valued at US$ 5,057.87 million in 2019 and is projected to reach US$ 9,174.86 million by 2027; it is expected to grow at a CAGR of 7.8% during the forecast period.

Fruit snacks are processed and sugary confectioneries, especially made for children. Surging demand for fruit snacks is attributed to the rise in purchasing power and growing consumer preference toward healthy and ready-to-eat convenience food items. Further, with the growing food & beverages industry and improving economic conditions, consumer inclination toward convenience foods is also increasing. Consumers prefer fresh and less processed ready-to-eat products that are equally healthy and nutritious. With the expansion of distribution channels, convenience foods have found a shelf in the supermarkets and retail outlets. Additionally, the change in working demographics and busy lifestyles are among the other factors promoting the demand for convenience food items. Besides, major companies are coming up with the improved quality of fruit snacks and approaching efficient distribution channels to serve the broader customer base.

North America is expected to hold the largest share of the global fruit snacks market during the forecast period. Several domestic and international companies have a strong foothold in the North American region. Key market players in the North America fruit snacks market include Bare Snacks, Crispy Green Inc., and Mount Franklin Foods LLC. These companies are constantly working toward innovation and new product developments of fruit snacks to bring improved tastes and quality in their products to attract new consumers and widen the consumer base in the region. An upsurge in the incidence of obesity, high blood pressure, and diabetes has made the people more reliant on products that are highly nutritious. Fruits contain vital nutrients such as magnesium, potassium, vitamins, and fibers that help in the reduction of risks associated with obesity and cardiovascular diseases

The COVID-19 outbreak was first reported in Wuhan (China) in December 2019, and since then, it has spread at a fast pace across the globe. As of December 2020, the US, India, Brazil, Russia, France, the UK, Italy, Spain, Argentina, Colombia, Germany, and Mexico are among the worst-affected countries by this pandemic. According to the WHO, there are ~72,851,747 affirmed cases and 1,643,339 death cases all around. COVID-19 has affected economies and undertakings due to lockdowns, travel bans, and business shutdowns. The global food & beverages industry is one of the major businesses enduring supply chain breaks, and manufacturing disruptions due to lockdown and office shutdowns. China is the global hub of manufacturing and the largest raw material supplier for various industries. The lockdown of various plants and factories in Asia Pacific and Europe is affecting the global supply chains as well as limiting the manufacturing and delivery schedules, and product sales. These factors also hinder the global fruit snacks market growth.

Fruit Snacks Market

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Market Insights

New Product Launches Using Advanced Technology

The rise in popularity of the fruit snacks among the populace has motivated manufacturers to boost the production volumes and undertake investments in research and development as well as new product development using the latest technologies. Market players are introducing various healthy products such as freeze-dried fruits and gluten-free trail mixes. To attract customers, the manufacturers are launching a range of products. They are seen experimenting with ingredients, texture, taste, and nutritional elements. They are also going for attractive packaging to draw customers. Manufacturers are adopting cutting-edge production and packaging technologies to fulfil customer expectations for snack products, which should be devoid of ingredients derived from GMOs and other unhealthy artificial ingredients. For instance, in 2018, General Mills launched new flavors in fruit-based yogurt snacking products. In 2020, Crispy Green Inc. announced the launch of a new strawberry flavor to their product line-up. The new product contains all strawberry, without added sugar and GMO ingredients. All such new product development strategies adopted by the company provide a base for innovation and align their product portfolio with customer expectations.

Type Insights

On the basis of type, the fruit snacks market is segmented into sweets and savoury, beverages, dairy, and others. In 2019, the sweets and savory segment dominated the market. Different types of sweets & savory fruit snacks are freeze dried, extruded strips, and so on, and they include chips, trail mixes, and gummies. These products are gaining popularity owing to increasing consumer preference for processed food products with high nutritional content. Besides, the rising demand for sweets & savory fruit snacks among the children of age group 3–7 years is expected to drive the segment growth. Moreover, trail mixes such as prunes, figs, berries, dates, and apricots with seasoning, exotic flavoring, and coatings have been gaining popularity over the years. These snacks are on-the-go products that are rich in antioxidants, and help in boosting energy. Several savory snack processers and manufacturers are offering diversified products in terms of new shapes and flavor profiles to gain consumer attention.

Fruit Snacks Market, by Fruit Type – 2019 and 2027

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Fruit Family Insights

On the basis of fruit family, the fruit snacks market is segmented into apple, mango, banana, pineapple, berry, mixed, and others. In 2019, the mixed segment dominated the market.Mixed flavors are generally used to enhance the taste of food products. The snacks industry requires flavors for diverse purposes such as new product development, novel product line introduction, and taste change in existing products. Increasing consumer demand for new fruit snack flavors is anticipated to boost the mixed segment demand during the forecast period. Manufacturers are increasingly involved in providing mix fruit snacking items. For instance, Mount Franklin Foods offer mixed fruit snacks in an assortment of apple–strawberry, strawberry–blackberry, grape, pineapple–strawberry, and mixed berry flavors. They are made with fruit juices and 100% vitamin C without any artificial flavors or colors.

Distribution Channel Insights

Based on distribution channel, the fruit snacks market is segmented into supermarkets and hypermarkets, convenience stores, online retailing, and others. In 2019, the supermarkets and hypermarkets segment dominated the market. Supermarkets and hypermarkets refer to self-service shops giving a wide variety of products available for sale. At supermarkets and hypermarkets, products of different brands are placed at single place for buyers to help select suitable products in less time. Besides, factors such as hassle-free transactions, bulk purchasing, better services, and pleasant customer experience encourage buyers to shop from supermarkets and hypermarkets. Moreover, bulk delivery of products to these places minimizes the cost of operation for manufacturers, resulting in a high-profit margin. The sales of fruit snacks in hypermarkets and supermarkets are increasing due to the increasing footfall at these places, especially from the middle-class buyers. High footfall in hypermarkets and supermarkets makes it easy for the manufacturers to target their customer base.

Strategic Insights

Key players present in the global fruit snacks market include Bare Snacks, Crispy Green Inc., General Mills Inc., Ferrero, Mount Franklin Foods, LLC, Nutty Goodness, LLC, Seneca Foods, Sunkist Growers, Inc., SunOpta, and Welch's. These companies are implementing new product developments, and mergers and acquisitions to enlarge the customer base and gain significant market share across the world, which, in turn, permits them to maintain their brand name globally.

Report Spotlights

• Progressive industry trends in the global fruit snacksmarket that help players develop effective long-term strategies
• Business growth strategies adopted by developed and developing markets
• Quantitative analysis of the global fruit snacksmarket from 2017 to 2027
• Estimation of global fruit snacksdemand across various industries
• PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry
• Recent developments to understand the competitive market scenario and global fruit snacks demand
• Market trends and outlook,and factors driving and restraining the growth of the global fruit snacksmarket
• Understanding of strategies that underpin commercial interest with regard to the market growth

• Global fruit snacksmarket size at various nodes of market
• Detailed overview and segmentation of the market, as well as its industry dynamics
• Global fruit snacksmarket size in various regions with promising growth opportunities in the respective regions

Fruit Snacks Market, byType

• Sweets and Savoury
• Beverages
• Dairy
• Others

Fruit Snacks Market, by Fruit Family

• Apple
• Mango
• Banana
• Pineapple
• Berry
• Mixed
• Others

Fruit Snacks Market, by Distribution Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Online Retailing
• Others

Company Profiles

• Bare Snacks
• Crispy Green Inc.
• General Mills Inc.
• Ferrero
• Mount Franklin Foods, LLC
• Nutty Goodness, LLC
• Seneca Foods
• Sunkist Growers, Inc.
• SunOpta
• Welch