The snack food landscape is being reshaped by a convergence of shifting consumer habits, innovation in formulation, and tightening regulations on food ingredients. For snack food executives, these shifts offer remarkable opportunities—if you know where to look and how to act.

At Industry Intelligence, we’ve analyzed the latest market trends, consumer behaviors, and policy signals to help you stay ahead of the curve. Here's what every forward-looking snack brand needs to know.

Snack Smarter: What Consumers Want in 2025

Americans are snacking more than ever. Nearly half now snack at least three times a day, with younger adults leading the charge, according to a new Circana study. But snacking isn’t just about hunger—it’s about health, lifestyle, and convenience.

1. Better-for-You is Better for Business

Health-conscious consumers are prioritizing snacks that align with wellness goals. Over 64% actively seek healthy options—think high-protein, low-sugar, and clean-label. Yogurt, natural cheese, and protein-rich snacks are climbing the charts.

2. Function First

Today’s snacks must do more than taste good—they need to do good. Millennials and Gen Z are embracing functional snacks that support energy, gut health, and immunity. Online buzz is booming around prebiotic and probiotic snacks, signaling a ripe opportunity for brands that can deliver both taste and function.

3. Kid-Safe, Parent-Approved

Parents are demanding more natural ingredients in children’s snacks. While bright packaging still wins over young eyes, parents are shopping for products free of artificial additives and preservatives—fueling a $72 billion global market.

4. Click-to-Crunch

Nearly 50% of consumers now purchase snacks online. That means your e-commerce strategy must go beyond shelf appeal to include seamless digital UX, flexible delivery, and transparent ingredient disclosures.

Where is the Growth? Snack Segments to Watch

To stay competitive, manufacturers must prioritize high-growth categories. Here's where your R&D dollars should go:

1. Savory Snacks

From chips to crackers, savory remains king. The market is forecasted to grow from $273 billion in 2023 to $440 billion by 2033, driven by on-the-go lifestyles and flavor-forward innovations. The key to standing out? Healthier formulations and functional ingredients.

2. Healthy Snacks

Growing at 7.0% CAGR, the healthy snacks market is projected to reach $201.17 billion by 2034. Clean-label and organic options are hot—organic snacks alone will grow to $16.35 billion by 2033.

3. Protein Snacks

Fueling fitness and satiety, protein-rich snacks—from jerky to shakes—will top $100.56 billion by 2032. Meat snacks are holding strong, projected to hit $20.2 billion by 2034, while seafood-based snacks are on the rise, growing at 5.5% CAGR. Seen as alternatives to traditional jerky, ready-to-eat seafood snacks are formulated with dried fish and smoked salmon, appealing to clean-label and omega-3-conscious consumers.

4. Plant-Based Snacks

Consumers are craving nature’s bounty. Fruit snacks are projected to reach $13.8 billion by 2035 (7.4% CAGR), while nuts will grow to $91.2 billion by 2032 (5% CAGR). Sustainability and natural flavor are key value drivers.

Regulatory Shake-Up: Reformulate or Risk Falling Behind

Consumer demand isn’t the only force driving change. Public policy is setting a new standard for food safety and transparency—especially for snacks consumed by children.

In a landmark shift aimed at protecting children’s developmental health, the FDA announced plans to phase out a wide range of synthetic food dyes, including Green No. 3, Red No. 40, Yellow No. 5, Yellow No. 6, Blue No. 1, and Blue No. 2, by the end of 2025. The agency also moved to approve three new natural colorants:

• Butterfly Pea Flower Extract: Adds vibrant hues and antioxidants to cereals, chips, and mixes.
• Galdieria Extract Blue: A natural stand-in for Blue No. 1, perfect for dairy and fruit-based snacks.
• Calcium Phosphate: A mineral-based white colorant ideal for coatings and poultry snacks.

An increasing number of states have also introduced legislation to ban or restrict artificial food additives. Recent state bills include Arkansas’ SB187, Illinois’ SB0093 and Wisconsin’s AB226.

The newly approved natural alternatives offer functionality and appeal without the health baggage of synthetic dyes. Industry players like Givaudan Sense Colour and Fermentalg have welcomed the FDA’s decision, pointing to the potential of biotech-enabled natural ingredients to deliver cleaner, more appealing food experiences.

PepsiCo has committed to transitioning its entire snack portfolio to natural colors within two years—a signal that reformulation is no longer optional; it’s strategic.

From Test Kitchen to Market: The Innovation Surge

Snack makers are turning up the heat in the innovation lab. Air-popped, vacuum-fried, and air-fried technologies are redefining indulgence by cutting fat while keeping crunch.

Startups and legacy brands alike are launching bold new formats:

• Nature’s Fynd: Leading with fungi-based protein innovations.
• KUDO Snacks: Infusing popcorn with protein for post-workout appeal.
• Utz and Proper: Rolling out lemonade-flavored chips and lentil-based cheese snacks.

Color innovation is exploding, too. Exberry's red hues from black currants and Vetik’s seaweed-based pigments show that natural alternatives can be both safe and stunning.

Stay Ahead in a Fast-Changing Industry

Snack executives must navigate shifting consumer preferences, regulatory changes, industry innovations, and intensifying competition. Industry Intelligence is your strategic partner in mastering these challenges.

Your Next Moves:

• Track Shifting Laws: Our Legislation Monitor keeps you abreast of state and federal legislative changes well before compliance deadlines approach.
• Spot Trends Early: Our 360-Degree Market Drivers Report identifies emerging trends from every single angle, ensuring you stay ahead of market shifts that impact your business.
• Custom Dashboards: Get insights tailored to your portfolio and unique business drivers. Contact us for a consultative demo.

New!! Join our U.S. Public Policy LinkedIn group to network with government affairs experts and participate in thought-provoking discussions on legislative and regulatory trends that could impact your business: https://www.linkedin.com/groups/14613096/