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Consumers embrace ‘green' indulgence in snacks

In response, companies are innovating product formulations.

Consumers are reshaping the snack industry, demanding products that combine indulgence with sustainability and health benefits, Euromonitor International reported.

Sustainable snacks saw an 8% CAGR in retail sales from 2020 to 2023, driven by ethical sourcing, natural ingredients, and plant-based innovations.

In response, companies are innovating product formulations. PepsiCo, for instance, has expanded its USDA Organic and Non-GMO Simply range, incorporating natural ingredients into popular brands such as Lay’s, Ruffles, and Cheetos. Similarly, plant-based snacks made with nutrient-rich ingredients like lentils and whole grains are gaining traction.

The confectionery segment has also seen robust growth, with high single-digit sales CAGR from 2020 to 2023. Companies like Nestlé are addressing sustainability issues in the cocoa supply chain by investing in sustainably sourced cocoa. Their Rainforest Alliance-certified Sustainably Sourced chocolate travel range exemplifies this commitment.

Meanwhile, plant-based alternatives, such as carob-based chocolate, are emerging as environmentally friendly options, offering health benefits and lower supply chain emissions.

Beyond health and nutrition, transparency in sourcing and waste management has become critical. Companies like Clif Bar focus on sustainable practices, whilst major retailers such as Walmart and Carrefour expand eco-friendly private labels. Partnerships like Cargill and Voyage Foods’ plant-based cocoa innovations further reduce environmental impact.

Moreover, the report said consumers today seek snacks that align with the ethos of “good for me, good for the planet.” This includes products reduced in sugar, salt, fat, and calories, yet fortified with essential nutrients.  Private labels are responding with affordable, indulgent options.

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