Attending SNAXPO25 for the first time was an enlightening experience, offering a deep dive into the evolution and dynamics of the snack industry. Here are some of my key takeaways from the event:
Consumer Trends
Snack Consumption: On average, consumers enjoy three snacks per day, with younger generations snacking even more frequently. This trend underscores the growing importance of snacks in daily diets.
Healthier Options: There is a significant shift towards healthier, “better for you” snacks. Consumers are willing to pay a premium for options like yogurt, dairy, cheese, fruit, sushi, rice popcorn, meat, and protein bars. Honey and probiotics are also trending ingredients.
Holistic Health: Snacks that promote physical, mental, and social well-being are in demand.
Diversity: Unique shapes, sizes, and global flavors are gaining popularity, offering consumers a diverse snacking experience.
Industry Challenges
Tariffs and Domestic Sourcing: Tariffs are pushing brands to find domestic co-packers and suppliers, leading to capacity issues in the US. Larger brands are prioritized, while smaller brands will face sustainability and growth challenges.
Availability and Quality: The snack industry faces significant challenges regarding the consumer demand for quality ingredients. Issues such as the perceived concerns with certain oils and the controversy surrounding red dyes highlight the pressures on producers to source safer and sustainable ingredients. These challenges are compounded by the need to feed a growing population, raising concerns about the long-term sustainability of ingredient supplies.
Economic Pressures: With rising snack prices, consumers are making discretionary spending decisions, often prioritizing core food purchases over snacks. Value channels like grocery, convenience, and drug stores are becoming more popular.
Market Opportunities
Convenience and Value: Consumers seek convenience and value, which is not always measured by price. Producers should focus on bulk, smaller packs, and online sales, leveraging both first and third-party platforms for distribution.
Private Labels and Influencers: While brands remain important, private labels are gaining traction. Influencers play a crucial role in the snacking industry, with viral comments and videos driving consumer interest.
Micro Holidays: Celebrating micro holidays like St. Patrick’s Day and Valentine’s Day and others can boost sales.
Special Offers: Limited time flavors and offers are effective with consumers and for retailers since it attracts consumers to stores.
Innovation and Sustainability
Authenticity and Experience: Consumers desire snacks that are authentic and provide unique experiences. Innovations like freeze-dried textures and collaborations between brands are key to standing out.
Sustainable Packaging: Despite economic uncertainties, sustainable packaging remains a priority. Environmental policies like Extended Producer Responsibility (EPR) requires producers to include post-consumer resin in packaging, adding complexity to compliance.
Automation and Labor
Automation: Labor scarcity and rising costs make automation a critical focus for snack producers. The cost of inaction is high, with potential impacts on operational expenses, turnover, safety, and revenue targets.
Balancing Demands and Automation: The snack industry faces numerous demands and challenges, making it difficult for producers to allocate resources towards automation. However, partnering with equipment manufacturers and system integrators can provide the necessary support to get started and stay up-to-date with automated processes, ensuring efficiency and competitiveness in the market.
Unexpected Joy: Puppies
One of the big surprises for me was the presence of puppies at the show, offering attendees a chance for emotional release and relaxation. These furry friends provided a break from the norm and hustle and bustle of the event, allowing participants to unwind and experience the therapeutic benefits of interacting with animals. Additionally, the presence featured adoption opportunities, giving attendees the chance to provide a loving home to these puppies. This initiative not only added a heartwarming touch to the event but also underscored the importance of emotional well-being in the professional atmosphere. I’ve been around trade shows for over fifteen years and to see this was a first.
Overall, this event highlighted the dynamic nature of the snack industry, emphasizing the need for innovation, sustainability, and adaptability to meet consumer demands and navigate market challenges. As the industry continues to evolve, staying ahead of trends and leveraging opportunities will be crucial for success.
Attending SNAXPO2025 for the first time was an invaluable experience, providing insights into the latest trends and challenges in the snack industry. It was an excellent opportunity to stay in touch with the evolving landscape, connect with current customers, and meet new producers who can benefit from our innovative conveyor solutions. As the industry continues to grow and adapt, our commitment to supporting snack producers with efficient and reliable automation technologies remains steadfast.
If you are a snack producer or other food processor or co packer and need assistance with automation in your process, contact us to get started. We are experienced in a variety of snack applications including popcorn, nuts, cookies and more.
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