ANAHEIM, CALIF. — Evolving consumer need states combined with unpredictable economic factors are changing the way snack manufacturers interact with customers today, according to a panel of snack industry experts at the recent Natural Products Expo West in Anaheim.

During the session “Insights, Innovations and Disruptions Shaping the Future of Snacking,” the panelists detailed how snacks have become integrated into people’s everyday lives, often serving as a meal replacement rather than a traditional bridge between meals.

“Only one of my meals traveling here was a sit-down meal,” said Scott Collier, a business development executive with Whole Foods Market. “It was mostly comprised of snacking. Busy and traveling lifestyles fit (snacking), and we as a retailer have to be responsive to that. (Whole Foods) doesn't have a snacking section because you can make snacks out of so many things, but it's about convenience. So, in the various categories, as you move around the store, ideally there's something that hits that snacking customer…they want delivery of maybe certain macros or a certain meal they're going to replace with a snack, or supplement with a snack.”

Wendy Bazilian, a doctor of public health, registered dietician and principal, Bazilian’s Health Clinic, added that one in four calories eaten today come through snacks, so convenience and nutrition in snacks are vital components. “You want something you can grab and go, a portable snack you don't have to think about. You eat it and instantly feel better. It's portion controlled for you – you don't have to think about it. It's nutrient dense and it stays with you.”

GLP-1 and snacking

The panel also discussed how snacks today can fit the parameters of what consumers taking GLP-1 weight loss drugs might be seeking. Snacks are often packaged in small portions and can be fortified nutritionally, which could be ideal for someone with a reduced appetite.

However, it may still be too early in the evolution of GLP-1s to develop snack products specifically for users.

“I think we are not going to see much impact until three things happen,” said Luba Safran, head of venture for Mondelez International’s SnackFutures Ventures. “First of all, until Medicare actually approves (GLP-1) for obesity, and not just for diabetes and diabetes related things. Two, until you get a real oral delivery method that actually works and doesn't have the friction of injection. And three, access to it without having to make a doctor's appointment. Then we're going to see what the actual impact of GLP-1 will be on a mainstream consumer basis. The most interesting part of that will be, what does it look like to commercialize a solution for people?” 

Collier added that snacks formulated for GLP-1 users would be “a delivery of the nutrients you need in an eating-suppressed state. If you’re not as hungry due to GLP-1, how are we through snacking, delivering more nutrient density in an acceptable format that now meets that different need state. Portion control is actually one of the great features of a snack … it kind of already meets that dietary need of, ‘I'm only going to have a little bit because I'm just not that hungry.’” 

Commodity concerns

The recent uncertainty around price and availability of commodities like cocoa – along with possible tariffs that may accompany imported ingredients – is something snack manufacturers are having to navigate today while trying to keep costs and price increases under control. 

“It’s about trying to look ahead to see where we might face potential future disruptions,” Safran said. “Have backups and look at alternative methods of production. Cocoa is a large input for our company, so we look at alternative sources of cocoa. We recently announced an investment in a synthetic cocoa. It's really about what can we do to lay out potential multiple future scenarios so that the next time we face macro pressures, maybe we're not all so crunched at the end of the day.” 

Charlotte Cruze, co-founder, Alice Mushrooms, a company that makes functional chocolate squares with mushroom ingredients to enhance sleep, wellness and brain health, said ultimately if a snack company is affected by higher costs due to outside economic factors, then that company should re-emphasize its mission to core customers.

“When we think about being tariff-proof or price-increase proof, are we able to keep our promise to the consumer?” she said. “I think at the end of the day, people are willing to pay for certain things, particularly what we're offering in ways of feeling good: sleeping, focus, energy, sexual wellness. But are we able to deliver on it? That's why we hold ourselves to this very high standard, because I think you can weather a lot of these storms if your product is something that people rely on…and we’re doing what we need to do to keep our promise to our customers.”  

Taste balance

 Snacks that target health and wellness begin with a clean label, and that’s something consumers today are paying attention to, according to the panel, so transparency is essential to gaining and maintaining customer trust. However, the snacks still need to taste good.

“High fructose corn syrup has never been allowed in Whole Foods. It's a very common ingredient in a lot of processed foods. It's not that corn syrup inherently is the problem, it’s the processing to elevate the fructose versus the other sugars,” Collier said. “But the customer has to decide. If we put something out on the shelf that's functionally healthy but it tastes terrible, the customer is not going to respond, or maybe they'll buy it because it's on promo, but then the repeat customers are not there, so it is a balance.”