In this report we will examine the current state of the healthy snacking sector, exploring its key players, market size, consumer trends and future opportunities. Because the snacking market is valued at several billion pounds, brands are constantly innovating to capture and satisfy the increasingly health-conscious consumer.
Market Overview
Market Size and Growth
The UK's healthy snacking market is experiencing a real expansion since last years. According to a report by Mintel, « the sector is set to reach a value of £3 billion by 2025, with a compound annual growth rate (CAGR) of 7% from 2020 ». The real driving force behind this growth is the rise in health consciousness, coupled with government campaigns promoting sugar reduction and balanced diets. In addition, the demand for low-sugar, high-protein and natural ingredient collaborations has been boosted by the current trend towards "well-being" and healthy eating. Within the market, we can also observe that certain subcategories such as plant-based, gluten-free and high-protein snacks have particularly flourished.
Key Market Players
We will do here a short analysis of the leader of the healthy snacks market in the UK:
- Graze: A brand that propose healthy snack option. It has leveraged e-commerce and also retail.This is what leads it to maintain a strong presence. It has made its way to the sale market of healthy snacking also because of its famous personalized snack boxes.
- Eat Natural: This brand can be resumed as its simple and healthy ingredients which are making its own success. This is how it manages to captivate consumers who are looking for minimally processed and nutritious snacks. Its advantage is that it’s offering a range of bars, filled with nuts or seeds and dried fruits, that you can easely find in supermarkets.
- Private Label Brands: Some of the private laber brands like Tesco, Sainsbury’s and Aldi had a clear strategy : they aimed at targeted offerings that focus on affordable alternatives to established brands. All of this without harming taste or benefit health The most interesting thing is that these brands are collectively helping to shape the healthy snack landscape. This is due to the arrival of small niche brands and start-ups in the market with new and innovative products.
Consumer Trends in Healthy Snacking
The Rise of Plant-Based and Vegan Products
Demand for vegan plant-based snacks increased strongly. In fact, consumers are choosing more and more plant-based options. Which is for health reasons and also due to growing sustainability concerns. New research from the Vegan Society suggests that "25% of UK adults are actively trying to reduce their meat consumption". They also saw that many people turning to vegan snacks to supplement their diet. This is not something meaningless : brands like Deliciously Ella and HIPPEAS understood it and capitalized on this trend, with their protein-rich chickpea puffs and oat-based energy bars.
Sustainability and Ethical Consumption
Brands have recognized that sustainability has become a major concern for consumers. Consumers are increasingly consuming snacks with eco-friendly packaging and ethical sourcing. It’s safe to say that this is all to the benefit of visionary brands like Tony’s Chocolonely, which prioritizes fair trade ingredients and transparent supply chains. This trend towards ethically produced products shows us that consumers’ values are increasingly aligning with their purchasing choices. This allows brands to stand out through their commitment to environmental and social responsibility. In addition, consumers are favouring products that minimise waste, particularly through biodegradable or recyclable packaging, which increases the appeal of eco-friendly brands.
Low Sugar and High Protein Snacks
Sugar is becoming a real problem in people’s mind which led to a transformation in the snack market. People tend towards low-sugar, but high-protein products. It is notable that Public Health England’s (PHE) campaign in the UK to reduce sugar consumption has had an impact on consumers and manufacturers, prompting brands to innovate and offer alternatives. We can also notice High-protein snacks, like for exemple protein bars, nuts or Greek yogurt snacks, have a popularity that gained last years due to their health benefits, especially among those who have a fitness mindset and lifestyle. Like this, Brand like Grenade have seen increased awareness of their high-protein, low-sugar snack bars, appealing to athletes and also snackers.
Opportunities in the Healthy Snacking Market
Innovation in Ingredients
It’s a race against time to find the healthiest and most functional ingredients: between superfoods (chia seeds, goji berries, spirulina) and adaptogens (ashwagandha, maca), We dont know where to start. Functional snacks are a new topic that attracts consumers looking for additional health benefits, such as mood enhancement or immune support. Snacks infused with cannabidiol, or products like CBD protein bars touted for their calming effectsare the targets of consumers. Is this just a fad? What is certain is that healthy snack brands are finding their place in it and know how to play with the « innovation effect »
Digital Marketing and E-Commerce Growth
With the advent of the internet and the possibility of online shopping, consumers no longer consume in the same way. Brands are taking advantage of this to expand their network of influence. Brands are also relying on the messages conveyed by influencers with a strong community, by paying them for advertising their products, or even giving them the role of ambassador for the latter. Thanks to social networks, brands can develop their business and build customer loyalty. Healthy snack brands in the UK have really established themselves by using this lever via the internet.
Private Label Expansion in Supermarkets
Supermarkets are taking advantage of this increase in healthy snack consumption by expanding their distribution, making new emerging brands accessible. Tesco Free From and Sainsbury’s Plant Pioneers are leading the way by, for example, focusing on gluten intolerance or veganism. This leads to the possibility of smaller brands partnering with larger brands, which can allow them to have a more general distribution.
Conclusion
To conclude : In this this report we examined the current state of the healthy snacking sector, exploring its key players, market size, consumer trends and future opportunities
The bottom line is that the UK healthy snack market is booming. With shifts in diet awareness, the market is also being driven by shifts in consumer mindsets around health and sustainability. With established players like Graze at the head of the pack, alongside emerging brands and private label products the main thing that stands out about this market is the competitiveness. We saw that with ingredient innovation, digital engagement and a better ethical consumption lucratives opportunities multiply for brands.
If consumers stay on this wavelenght, prioritising wellness and ethical choices, we can presume that the future of healthy snacking in the UK will continue to shine.
Bibliography
Mintel Group Ltd. (2022). Healthy Snacking Trends in the UK. www.mintel.com
Statista. (2023). Market Value of Healthy Snacks in the UK from 2018 to 2025. www.statista.com
Nielsen. (2021). UK Healthy Snacking: The Growth of Low-Sugar and Plant-Based Snacks. www.nielsen.com
Public Health England (PHE). (2020). Sugar Reduction: Achieving the 20% Target by 2025. www.gov.uk
The Vegan Society. (2022). Plant-Based Eating and Veganism in the UK: 2022 Consumer Report. www.vegansociety.com
The Grocer. (2023). Private Label: The Supermarket Brands Shaping the Future of Healthy Snacking. www.thegrocer.co.uk
