Report Overview

The global organic snack market was worth USD 8.75 billionin 2020, and it is further projected to reach USD 18.3 billionby 2027, at a CAGR of 11.8% during 2021-2027 (forecast period). The organic snack market is growing globallyat a positive rate owing to factors such as the rise in the number of retail chains& supermarkets and a surge in consumers' spending capacity. Moreover, rising disposable incomes, new dietary habits, and demand for healthy readymade foods are other key drivers for this market's growth.Additionally, the increase in the willingness of customers in developing nations to purchase environment-friendly products is enabling the global organic snack market to accelerate in the coming years.

Source: BlueWeave Consulting

Global Organic Snack Market Overview

Organic snacks are food products that are produced organically using organic ingredients which are certified and free of artificial additives and genetically modified organisms (GMOs). A healthy food source, organic snacks contain vitamins, minerals, and protein. Increasing awareness of health issues among consumers and their desire for organic, natural foods over the past couple of years has driven the global organic snack market dynamically.Growing expenditure on organic farming in the U.S., Canada, Australia, and India is also one of the factors driving this market. Other factors contributing to its growth include developed retail landscapes, an ever-increasing demand for convenience foods, a rise in consumers' purchasing power, and millennials' willingness to try new products.Nevertheless, the high cost of production remains a roadblock for this market as it reduces the sales of organic snacks.

Global Organic Snack Market Trends

Growth Drivers

Consumer Awareness Regarding Consumption of Organic Foods

Recent changes in consumer behavior indicate the trend towards healthier choices.The result is that they have switched to organic foods in order to avoid damaging side effects of conventional foods.Organic snack foods are being preferred over the latter as they lead to increased obesity, increased calorie intake, and less nutrition uptake. According toOrganic Industry Survey by the Organic Trade Association, in 2019, the sales of the organic food segment haveoutpaced the total food sales in the U.S. The association further informed that this buying trend was more evident among millennials. Additionally, the demand for environmentally-friendly products without synthetic additives is also attracting buyers to the organic snack market.Furthermore, the expenditure on organic farming has increased as well.Global growth in organic snack sales is expected to be driven by new regulations regarding organic flavors.

Increased Consumer Spending Toward Food Products

The growing number of households with disposable income, the increase in purchasing power, strong impulse buying, and others are some of the factors that drive sales of organic snacks.For instance, as per the Ministry of Statistics and Programme Implementation data, consumer spending towards food, non-alcoholic drinks, and household items in India increased from USD 198.72billion in the second quarter to USD 244.30 Billion in the third quarter of 2020.With more purchasing power, consumers are willing to pay higher prices for healthier alternatives to organic products.Therefore, the organic snack food market is expected to grow in demand as consumer spending grows.

Restraints

High Cost of Production

Compared to conventional farming, organic agriculture is more expensive due to the high cost of fertilizers, post-harvest handling costs, machinery, and organic certification.Because organic products have a relatively small volume, the marketing and distribution processes for them are also relatively inefficient.The result is a higher price margin for organic snack foods, and consumers are forced to pay a higher price for organic snacks compared to their unhealthy, conventional alternatives.Price concerns are thus hindering the growth of organic snack food.

Impact of COVID-19

Global organic snack sales were somewhat affected by the COVID-19 pandemic, although the effect was relatively mild.The majority of organic food ingredients consumed by developed regions like North America and Europe come from Asia, Latin America, and Africa. This pandemic-induced lockdown impacted the availability of organic food in stores and supermarkets because the restriction on transportation has curtailed the movement of goods.

Nevertheless, health and nutrition awareness has been raised among consumers due to the outbreak of the pandemic.The sales of organic products haveincreased globallyduring the pandemic period.As reported by the Organic Trade Association in its 2020 Organic Industry Survey, organic food sales in the U.S. reached USD 55.1 billion in 2020.Organic snack options provide consumers with immense health benefits and a composition free of additives because they focus on disease prevention and immunity improvement. This demand has boosted the growth of this market amid the pandemic.

Global Organic Snack Market: By Product

Based on product types, the global organic snack market is segmented intocandy bars, nutrition bars, salty snacks, nuts, meat snacks, and others. Among these, the snack bars/nutrition bars segment held the largest share in the market. There has been an increase in demand for these snack bars due to awareness of health and nutrition. Over the years, various ingredients have been added to these snack bars, such as granola, muesli, cereals, fruits, and others.A snack bar and nutrition bar are very popular because they are convenient to consume and replace heavy meals in the busy lives of the working class.

Global Organic Snack Market: By Distribution          

In terms of distribution channels, the global organic snack market is segmented into department stores, supermarkets/hypermarkets, convenience stores, e-commerce, and others, with supermarkets holding the largest share in 2020.A supermarket provides a wide variety of products and the possibility of comparing and checking them before purchase.The impulsive buying of snacks at the checkout counter also boosts sales through the retail channel. Meanwhile, the e-commerce sector is supposed to grow during the forecast period as consumers nowadays prefer purchasing snacks online owing to social distancing norms. Thus, the increased use of smartphones and the availability of low-cost internet would boost online retailing in the global organic snack market.

Source: Blue Weave Consulting

Global Organic Snack Market: Regional Insights

The global organic snack market is categorized into North America, Europe, the Asia-Pacific, Latin America,Middle-East &Africa. Among these regions, the North American region holds the largest share in the market. According to the Organization for Economic Co-operation and Development (OECD), adult obesity rates are highest in the U.S. (38.2%) and Mexico (32.4%). This has led to buying trend of low-calorie and natural additives snack food. As a result of these factors and increasing consumer demand for healthy on-the-go snacks, the organic snack market has grown in this region.

Additionally,the Asia-Pacific region is expected to grow at the fastest rate during the forecast period. Several factors have contributed to the growth of the organic snack market in this region, including the increase in budgets for organic farming and increased consumption of organic food.Among other factors, the rise in organic food manufacturers, as well as a rise in household food spending,is also bolstering consumer demand for organic foods.Furthermore, the increase in retail infrastructure has improved the accessibility of these products besides driving the demand for organic snack foods.

Source: Blue Weave Consulting

Competitive Landscape

The global organic snack market is fragmentedin nature with the participation of both international and regional players. The key players in the market include PRANA, Pure Organic, Kadac Pty Ltd, Made in Nature, Hormel Foods, Navitas Naturals, Conagra Brands, Hain Celestial, Woodstock Farms Manufacturing,Simply Naturals LLC, Yummy Earth Inc., Annies Homegrown Inc., General Mills, Frito-Lay Inc., Danone, and other prominent players. These players are constantly utilizing product innovations to increase their market share and remain competitive in the market. For instance, Horizon Organic, a Danone company, offers products that can be easily opened with easy peel-open packaging.

Recent Developments

• In May 2021, Nature Bio Foods announced the inauguration of its futuristic organic food processing plant at Maasvlakte near Rotterdam, Netherlands. This new integrated organic ingredient processing facility aimsto provide products to the customer through a sustainable supply chain.

• In December 2020, LT Foods decided to scale up its organic food brand ‘Ecolife’ to leverage the rapidly growing health trends in the pandemic. The company is focusing its production on the rapidly growing organic market. This new launch would increase its current franchise of manufacturers. 

• In March 2020, Mahindra Agri Solution invested in Mera Kisan, an organic food manufacturing start-up.This initiative wouldensure delivering organic fruits and vegetables of the highest quality directly to consumers' doorstep. In addition, the farmers would benefit from this as payment would be made upfront through an online payment platform.

Scope of the Report

By Product Type

• Candy Bars
• Nutrition Bars
• Salty snacks
• Nuts
• Meat Snacks
• Others

By Distribution Channel

• Departmental stores
• Supermarket/hypermarket
• Convenience stores
• E-commerce
• Others

By Generation

• Millennials
• Generation X
• Baby Boomers
• Others

By Region

• North America
• Europe
• The Asia-Pacific
• Latin America
• The Middle-East & Africa

FAQs:

1. What is the current size of the globalorganic snack market?

Answer: The global organic snack market reached USD 8.75 billionin 2020.

2. What are the major factors driving the growth of the globalorganic snack market?

Answer: Rising health consciousness, desire for a non-synthetic food products, increased consumer spending, change in dietary lifestyle, the choice for environmentally-friendly products, and buying trends of millennials are key drivers of the market.

3. Who are the key players in the globalorganic snack market?

Answer: The key players profiled within the global organic snack market are PRANA, Pure Organic, Kadac Pty Ltd, Made in Nature, Hormel Foods, Navitas Naturals, Conagra Brands, Hain Celestial, Woodstock Farms Manufacturing, Simply Naturals LLC, Yummy Earth Inc., Annies Homegrown Inc., General Mills, Frito-Lay Inc., Danone, and other prominent players

4. Which segment accounted for the largest share in the global organic snack market?

Answer: The snack bar segment accounted for the largest share in the global organic snack market.

5. Which region is growing at a higher rate in the global organic snack market?

Answer: The Asia-Pacific region is growing at a higher rate in the global organic snack market.

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Primary &Secondary Research Application
      2. Secondary Research
      3. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Global Organic Snack Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   3. Industry Life Cycle Analysis
   4. Porter’s Five Forces Analysis
      1. Bargaining Application of Suppliers
      2. Bargaining Application of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Global Organic Snack MarketOverview
   1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Million)        
   2. Market Share & Forecast
      1. By Product Type
         1. Candy bars
         2. Nutrition Bars
         3. Salty Snacks
         4. Nuts
         5. Meat Snacks
         6. Others
      2. By Generation
         1. Millennials (18-34)
         2. Generation X (34-50)
         3. Baby Boomers (51- 69)
         4. Others
      3. By Distribution Channel
         1. Departmental Stores
         2. Supermarket/Hypermarkets
         3. Convenience Stores
         4. E-Commerce
         5. Others
      4. By Region
         1. North America
         2. Europe
         3. The Asia-Pacific
         4. South America
         5. The Middle East and Africa
6. North America Organic Snack Market
   1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By Generation
      3. By Distribution Channel
      4. By Country
         1. U.S.
         2. Canada
7. Europe Organic Snack Market
   1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By Generation
      3. By Distribution Channel
      4. By Country
         1. France
         2. Germany
         3. Italy
         4. Spain
         5. U.K.
         6. The Netherlands
         7. Belgium
         8. Russia
         9. NORDIC Countries
         10. Rest of Europe
8. The Asia-Pacific(APAC) Organic Snack Market
   1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By Generation
      3. By Distribution Channel
      4. By Country
         1. Japan
         2. China
         3. India
         4. South Korea
         5. Australia and New Zealand
         6. Southeast Asia Countries
         7. Rest of APAC
9. Latin AmericaOrganic Snack Market
   1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By Generation
      3. By Distribution Channel
      4. By Country
         1. Brazil
         2. Argentina
         3. Mexico
         4. Colombia
         5. Rest of Latin America
10. The Middle East & Africa(MEA) Organic Snack Market
    1. Market Size & Forecast by Value, 2017-2027
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Product Type
       2. By Generation
       3. By Distribution Channel
       4. By Country
          1. South Africa
          2. Saudi Arabia
          3. U.A.E.
          4. Qatar
          5. Kuwait
          6. Iran
          7. Turkey
          8. Nigeria
          9. Kenya
          10. Rest of MEA
11. Competitive Landscape
    1. List of Key Players and their Offerings
    2. Company Market Share Analysis, 2020
    3. Competitive Benchmarking, By Operating Parameters
    4. Competitive Benchmarking, By Product Offerings
    5. Strategic Developments
12. Impact of Covid-19 across Global Organic Snack Market
13. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. PRANA,
    2. Pure Organic,
    3. Kadac Pty Ltd,
    4. Made in Nature,
    5. Hormel Foods,
    6. Navitas Naturals,
    7. Conagra Brands,
    8. Hain Celestial,
    9. Woodstock Farms Manufacturing,
    10. General Mills.
    11. Frito-Lay, Inc.
    12. Danone
    13. Other Prominent Players.
14. Key Strategic Recommendations

*Financial details of unlisted companies will be available as per data availability in final deliverable

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

List of Tables