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The packaged fruit snacks market is estimated to grow at a CAGR of 8.87% between 2022 and 2027. The size of the market is forecast to increase by USD 3,310.59 million. The growth of the market depends on several factors, including changing food consumption patterns, high demand for low-calorie snacks, and growing product availability through retail chains.
This report extensively covers market segmentation by distribution channel (offline and online), product (sweet and savory packaged fruit snacks, beverage-type packaged fruit snacks, dairy-type packaged fruit snacks, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global packaged fruit snacks market as a part of the global packaged foods and meats market under the global food products segment of the global food, beverage, and tobacco market. The global packaged foods and meats market covers manufacturers or food processing vendors that are involved in food processing to eliminate microorganisms and extend shelf life. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The high demand for low-calorie snacks is notably driving the market growth, although factors such as the rise in demand for fresh fruits may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Packaged Fruit Snacks Market Driver
The high demand for low-calorie snacks is notably driving market growth. With growing health consciousness, consumers have started adopting healthy snacking habits to fuel their metabolism rate. Healthy snacking is considered to complement weight-loss plans and is a convenient way to get the required vitamins and nutrients. As obesity rates are rising at an alarming rate worldwide, weight management has become essential to today's consumers. As weight management will be one of the most significant trends in the coming years, the focus on calorie-burning and fat-burning properties in food items will increase. Hence, owing to the increasing prevalence of obesity, consumers are opting for healthy snacks that offer nutrients while being low on calorie content.
Moreover, the nutritional content of fruit snacks is high when compared to other processed snacks. According to Welchs, fruit snacks contain a full day's source of vitamin C requirement, as well as 25% of the recommended daily value of vitamins A and E. Therefore, the growing focus on healthy snacking and weight management will have a positive impact on the growth of the global market during the forecast period.
Significant Packaged Fruit Snacks Market Trend
The growth of online retailing is an emerging trend in the market. The global expansion of e-commerce enterprises has been fueled by increasing internet access. Furthermore, a surge in the need for easy shopping, simplicity of product discovery, and appealing prices and personalized offers on products is driving global demand for online shopping. Online retailing has given packaged fruit snack suppliers a new chance to increase their sales, broaden their geographic reach, and improve customer relations and profitability.
The increased interest of consumers and preference for online buying owing to the convenience it offers has made several manufacturers and distributors focus on online sales. As a result, vendors such as Kellogg Co. and PepsiCo Inc. are increasingly partnering with online retailers such as Amazon.com Inc. and Waitrose and Partners to sell products on e-commerce platforms. Furthermore, online retailers facilitate both business-to-business (B2B) and business-to-consumer (B2C) transactions, which encourages vendors to concentrate on the internet-savvy consumer segment and explore new online retail formats. Hence, such factors are expected to boost the growth of the global market during the forecast period.
Major Packaged Fruit Snacks Market Challenge
The rise in demand for fresh fruits is a major challenge impeding market growth. People have become increasingly health-conscious and prefer a healthy diet, which will impede the growth of processed food products like fruit snacks. Fresh foods are those that are available in the raw state and have not undergone any form of thermal processing. They are not frozen, and no preservatives are added to them. There is a high demand for such products across the globe as consumers realize the health benefits that these fresh foods offer. Eating fresh produce provides an individual with more energy, reduces the effects of aging, and helps in reducing weight. Considering such factors, the stiff competition from fresh fruits acts as a major challenge for the global market.
The demand for fresh food is expected to witness growth during the forecast period due to the rising awareness of the benefits of fresh foods, including fruits and vegetables, on one's health. Furthermore, the promotion of the benefits of fresh fruit and vegetable consumption by several leading organizations like the World Health Organization (WHO) will also have a positive impact on the demand for fresh food, which will impede the growth of the market during the forecast period.
Key Packaged Fruit Snacks Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Packaged Fruit Snacks Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Chaucer Foods Ltd. - The company operates under one segment. The company under this segment offers baked sweet and savory, freeze-dried fruits, and infused fruits. The key offerings of the company include packaged fruit snacks with flavors.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the offline segment will be significant during the forecast period. The offline segment of the distribution channel includes supermarkets, hypermarkets, departmental stores, convenience stores, discount stores, and retail stores.
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The offline segment was valued at USD 3,886.12 million in 2017 and continued to grow until 2021. The number of convenience stores is increasing across the world, with rapid urbanization and changing lifestyles of consumers. Discount stores that offer a wide array of products at low and discounted prices compared with other retail stores are also increasing in numbers. The distribution channel of discount stores is highly efficient, and this makes snacks accessible to a wide consumer base. These stores also offer a broad range of brands for every product type to give consumers several packaged fruit snack brands to choose from. Furthermore, supermarkets and hypermarkets are the main distribution channels for packaged fruit snacks owing to the growth of the organized retail sector worldwide. They provide a wide variety of packaged fruit snacks to cater to the increasing demand. Another advantage of supermarkets and hypermarkets is that they offer high product volumes that give supermarkets and hypermarkets greater buying power. This helps them in pricing products at competitive rates by offering discounts, which rivals may find difficult to match. Consequently, consumers get benefitted as they can get packaged fruit snacks at discounted rates. Therefore, such factors are expected to drive the growth of this segment during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market in North America is expected to witness a steady growth rate during the forecast period. The popularity of packaged fruit snacks is increasing among millennials, and this factor will play a crucial role in the growth of the regional market during the forecast period, as millennials are turning out to be a prominent consumer group owing to their large spending power.
The US is the leading country in the region, which contributes the maximum revenue to the market in North America. An increasing preference for snack items and the easy availability of new products with enhanced taste and flavors are the major driving factors in the market in the US. Many vendors in the country are also trying to attract consumers by launching new products. For instance, in August 2020, SunOpta Inc. announced the launch of the Arbor bar in the US. Therefore, the launch of innovative and new products will also drive the growth of the market in the region.
The other major market for packaged fruit snacks in the region is Canada. The growth is primarily driven by the increasing snacking trend and rising health consciousness among consumers in the country. In Canada, fruits constitute the key snack items for children aged 2-7 years. The most popular snacks for older children include yogurt, cookies, and snack bars. This growing popularity of fruit snacks will help propel the sales of packaged fruit snacks in the country during the forecast period.
The COVID-19 pandemic negatively impacted the regional market in 2020. However, as retail stores in the region reopened in 2021, the demand for packaged fruit snacks also increased. Consumers in the region are now more concerned about health than ever before. The sales of packaged fruit snacks via online channels are also increasing in the region. Such factors will drive the growth of the regional market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Packaged Fruit Snacks Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.87% |
Market growth 2023-2027 |
USD 3,310.59 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.15 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Chaucer Foods Ltd., Crispy Green Inc., Del Monte Food Inc., Ferrero International S.A., Ganong Bros, Jain Irrigation Systems Ltd., Mount Franklin Foods LLC, Nims Fruit Crisps Ltd., Peaceful Fruits, PIM Brands Inc., SunOpta Inc., SweetLife AG, The Kraft Heinz Co., Tong Garden Co. Ltd., Tree Top Inc., YumEarth, Danone SA, General Mills Inc., Kellogg Co., and PepsiCo Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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