According to IBISWorld forecasting, this financial year Australians will consume over $3 billion in snack foods. That is a huge figure, but the good news is that it is health snack foods that have really increased in consumption.
Ryan Lin, senior industry analyst at IBISWorld, said; “Snack food options have expanded beyond traditional snacks – such as potato chips and biscuits made with standard white flour – over the past five years as consumers become increasingly health conscious and seek higher quality snack foods.”
Since the 2010 / 11 financial year there has been a 1.4% growth in the snack food industry as a whole, but a 3% growth in the health snack food side of the industry.
Premium and gourmet snack foods, like gourmet flavoured chips, are also becoming more popular.
Ryan Lin also said; “While potato chips remain the most popular form of snack food, increasing consumer demand for healthier options manufactured by Australia’s Health Snack Food Production Industry – including dried fruits and nuts, which account for 42.8% of industry revenue; muesli bars (29.1%); protein bars (17.4%), and other items such as fruit and vegetable bars (10.7%) – is anticipated to drive growth and deliver both challenges and opportunities for industry players.”
The recent CSIRO Diet Survey shows that on average Australians are eating up to 32 kg of chocolate each per year, so it is little surprise that in the IBISWorld forecasting this snack food will show an annual revenue growth of 1.9%. in the 2015 / 16 financial year
Biscuit consumption, and therefore manufacturing has declined in revenue by 2.6%, and is the only snack food to show a decline since 2010/11.
So all those new chips flavours and “healthy snacks” we see on the supermarket shelves are being driven by consumer demand, or is it that consumers are buying them because they are now available?