How mature snack categories are uncovering innovation

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How mature snack categories are uncovering innovation

22 Dec 2022

Joanie Spencer

Since 2008, Joanie Spencer has covered the retail and wholesale sides of the baking industry.
Serving associations such as the American Society of Baking (ASB) and BEMA, Joanie is also in demand as an industry presenter on bakery operations and trends. She holds a bachelor’s degree in communication from Rockhurst University and a master’s degree in journalism from the University of Missouri.

When she’s not running or playing soccer, Joanie spends her time with her husband and 11-year-old son.

ARLINGTON, VA — In the world of snacking, success can often be measured by reinvention as much as sales growth. During an Emerge CPG lunch and learn webinar in December, David Walsh, VP of membership and communications for SNAC International, shared that some of the largest snack categories are tapping into hot consumer trends and finding new ways to reinvent themselves.

Take, for instance, tortilla chips. Although it experienced only 1.5% growth in 2021, according to IRI data obtained by SNAC, this $5.3 billion category is ripe for innovation. As the second largest snack category behind potato chips, tortilla chips are an easy standby item for entertaining and can stand in as an at-home appetizer, easily bringing the restaurant experience home.

“Years ago, we saw the trend of tortilla chip manufacturers ‘putting the restaurant in the bag,’ so to speak, by coming up with more authentic styles of chips,” Walsh said during the webinar. “That trend came back and was a perfect fit during COVID when consumers were eating most of their meals at home.”

Tortilla chip manufacturers are also innovating with better-for-you ingredients such as sprouted and whole grains or alternative flours made from cassava or chickpea. Additionally, healthy inclusions such as chia and flaxseed are popping up on tortilla chip ingredient lists.

“All of this innovation is setting the stage for the tortilla chip category and helping to add things that consumers find so important,” Walsh said.

Perhaps the biggest opportunity for tortilla chip innovation is with flavors, especially as consumer demand for heat remains on the rise. Bold, experiential flavors are on the radar, and tortilla chips are proving to be a nearly perfect platform.

Brands like Doritos are driving the trend with flavor lines including Blaze and Flamin’ Hot. Tostitos has released a habanero flavored tortilla chip, and the chili and lime flavor combination is hitting the tortilla chip aisle as well.

“You really can’t get enough heat in this category,” Walsh said.

“All of this innovation is setting the stage for the tortilla chip category and helping to add things that consumers find so important.” — David Walsh | VP, membership and communications | SNAC International

Another traditional category that’s innovating through reinvention is pretzels.

This category also spiked during the pandemic but is now back to strong, but single-digit, growth of 5.41%. Pretzels are holding onto their momentum by tapping into health and indulgence simultaneously while also offering some innovative new iterations of a mainstay product.

Unique Snacks offers 100% whole grain organic sprouted wheat pretzel products that are checking a lot of boxes for consumers. And over the past year, Snyder’s Lance launched a line of gluten-free pretzels as well as seasoned pretzel twists.

“Flavored pretzels have become huge,” Walsh observed.

OMG! Pretzels, a member of both SNAC and Emerge, has been driving flavor innovation in this category for years, with varieties like Lemon Pepper, Salty Butterscotch and Cheddar Jalapeño.

Additionally, Quinn Snacks has touted “classic snacks reimagined.” For this brand, varieties such as Maple Almond Butter Filled Pretzel Nuggets are tapping into portable snacking while simultaneously feeding the craving for bold flavors.

With new ingredients like sorghum entering the pretzel category, these products have an even bigger runway to develop indulgent products that have a healthy halo baked in.

As consumers settle into a post-pandemic reality, they have shifted not only their eating habits but also preferences for the varieties in the foods they eat. It’s leaving traditional snack categories little choice but to innovate.

That said, it’s a huge opportunity for manufacturers of those mainstays to reinvent themselves and, perhaps, their categories.

“We’re really seeing blurring of lines between with those traditional salty snacks categories,” Walsh noted. “With innovation through new ingredients, snack producers are providing consumers with enjoyment and indulgence that’s part of everyone’s balanced diet from time to time.”

The leading international trade association for the snack industry and representing more than 400 snack producers and suppliers worldwide, SNAC International is part of the Emerge CPG partner group developed to guide early-stage CPG brands in various aspects of business and brand development. Monthly lunch and learn webinars are available to all Emerge CPG members.

For a deeper dive into the snack manufacturing space, SNAXPO23 — set for March 19-21 in Orlando — is an all-in-one destination for emerging and mature snack brands to meet co-manufacturers, suppliers and critical partners.

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