Snack Food Industry

2008 Snack Food Industry Expo

According to snack food industry professionals, 2008 has been an extremely good year with a 4% increase in sales, despite the economic recession. Granola bars saw the biggest surge, with 11% growth, followed by 8% increase in yogurt sales growth, 5% increase in chocolate sales, 5% increase in snack nuts/seeds and a 4% increase in salty snacks and crackers. This increase is primarily in healthy snacks, experts say, which directly corresponds with the public's increased interest in eating healthy, and manufacturers are eager to please with new health-conscious products and packaging.

It's surprising to some that snack food industries have skyrocketed during a time of recession, especially when snack food prices have increased anywhere from 4-11% over the last year, due to increased energy and commodity costs. However, consumers are flocking to Wal-Mart for their fair-priced trail mixes and coated snacks. For the most part, weight management and nutrition headlines are driving consumer interest and demand for healthy snack foods, with 62% of consumers saying they eat foods to prevent or manage health conditions and 42% are seeking snacks with health benefits. Yet industry leaders add that the more indulgent treats still comprise two-thirds of all sales.

Some companies in the snack food industry are taking extra steps to evolve their businesses. For instance, PepsiCo has taken steps this year to reduce their carbon footprint. "It doesn't matter if you believe in global warming or not," said Robert D. Schasel, director of energy conservation. "You still want to save money." He added that PepsiCo has drastically reduced energy consumption, water usage and waste discharge. They now use a landfill that converts methane gas for use in boilers for seven of their locations, a solar powered plant in California which produces 75% of the energy needed to produce Sun Chips and using the water content of potatoes to power their boilers. At the end of the day, the food snacks company is saving money and also boosting their rapport with eco-conscious consumers.

Additionally, there has been a snack food industry evolution as far as ingredients go. On everyone's mind at this year's SNAXPO (snack exposition), they discussed how to lower trans fats and alter plant genetics to improve the nutrition and flavor of their food snacks. Mary LaGuardia, an omega-9 oils market manager for Dow AgroSciences, explained the concept of thoughtful plant breeding. "We have gotten rid of trans with low levels of saturated fat without sacrificing stability, flavor and shelf life," she said. Soybean oil can reduce trans and saturated fats, as well as produce omega 3 fatty acids. Many of these techniques will revolutionize the industry in the coming years as we shift toward a more health-conscious society.







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