CHICAGO — The snack category has endured stagnating volume and unit sales amid recent economic pressures, but it’s now showing signs of recovery. Total food and beverage volume sales increased in Q3 of 2024 for the first time in three years, and core snack unit losses softened from -1.8% in Q3 2023 to 0.8% in Q3 2024, according to Circana.

Potato chips, which saw unit sales grow 7.1% in the quarter compared to a year ago, are an especially positive sign for the category’s momentum, said David Walsh, vice president of membership and communications at SNAC International, during his presentation on snack trends at Pack Expo, held Nov. 3-6 at Chicago’s McCormick Place. 

“Potato chips are a very mature category and a very large category already, and the fact that it grew in units is very strong and shows really good things about the industry,” Walsh said. 

Other category bright spots that increased units compared to a year ago include meat snacks (+10.2%), savory snacks (+2.5%) and dried fruit chips (+5.8%), Circana reported. 

Economic headwinds such as rising prices and stagnating wages are still impacting consumer snacking behavior, however, with many prioritizing value and affordability, Walsh said. This can be seen in the growth of multi- and variety packs, for example. 

“Fifty percent of consumers are actually looking for variety packs when shopping, which is actually up eight points from 2022 to 2023,” Walsh said. “There’s this opportunity for brands, and companies now really need to be considering a range of price points and value-added formats like multipacks to appeal to both premium and budget-conscious consumers.”

These price-sensitive snackers have led to a rise in private label sales, which account for a 16% unit share of the category and outpaced core snack unit growth by 3.5% in Q3 2024. Still, premium snacking is trending, Walsh observed, with 56% of consumers now willing pay extra for these premium items, according to Circana. 

Taste continues to be the primary driver of snack purchases with 67% of consumers saying it’s very important. However, other factors such as high protein, low sugar and environmentally friendly are becoming increasingly important. 

“They’re prioritizing health and minimal processing,” Walsh said. “A lot of them are looking for this permissible indulgence. … They’re seeking snacks that not only satisfy their cravings but also align with their health goals, making claims like minimally processed and organic options more popular than ever before.” 

There’s growing interest in functional ingredients in snacks as well, Walsh explained, including adaptogens, mushrooms and pre- and probiotics. Simplified and natural ingredient lists are increasingly popular as well.

“Consumers are looking for things that go beyond just nutrition, and that's really playing out in not only the extended snack categories we think of, but also traditional snack categories as well,” he said.

On the flavor front, Walsh observed that younger consumers are seeking experimental and bold flavors such as caramel cheese, pineapple pastor, dill pickle and peanut butter and jelly. Hot flavors continue to trend, but Walsh noted consumers are seeking an added layer of sophistication in these spicy snacks. 

“There’s a lot of hot flavors, but with added nuance, like Carolina reaper pepper pimento, or spicy Jarlsberg,” he said.

The snack category is regaining momentum as snacking becomes an increasingly important part of consumers’ lives. Seventy-one percent of consumers now snack daily, according to The Hartman Group, and 46% of consumers snack 3+ times daily, Circana reported. 

“This high frequency of snacking means products must address a wide range of needs, from indulging all the way to nutritious and even beyond nutritious,” Walsh said. “And this frequent snacking creates great opportunities for brands to provide options that meet consumer demands across taste, convenience and health.”