Consumers and snack producers alike continue to face a long list of challenges. Still, snackers keep on snacking, including those who purchase nuts and snack mixes. What’s more, food firms offering products in the category are working to ensure Americans keep popping their products by innovating in a number of notable ways.
Market data
According to Circana (Chicago), the snack nuts category recorded $5.2 billion in sales for the 52-week period ending April 21, 2024, a decline of 2.9% compared to the previous period. Private label brand sales hit $2.1 billion; Hampton Farms, Peanut Patch, and Frito-Lay brand Sabritas each noticed rises in sales during the past year (4%, 13.6%, and 14%, respectively).
Furthermore, Planters, Wonderful Pistachios, and Blue Diamond remained leaders within the industry, while reporting total sales of $903 million, $900 million, and $474 million, respectively—all extraordinary figures in this day and age of high inflation and unpredictability.
More positive news was observed, concerning the nutritional snacks and trail mixes industry, which documented total sales of $1.4 billion, a 0.3% increase. During that same timeframe, private labels brands surpassed $812 million, a year-over-year rise of 0.6%.
Finally, nearly every major nutritional snacks and trail mixes manufacturer recorded year-to-year sales upsurges, including Planters ($73.1 million, a 2.7% increase), Kars ($73.1 million, a 9.2% uptick), and Kars brand owner Second Nature ($36.1 million, an 8.9% rise). Additionally, Gourmet Nut reported a 36.5% escalation in sales ($26.5 million in all), while Chex Mix’s total sales rose to $19.4 million, a 5.5% upturn.
Looking back
Despite the spots of positive news, Harry Overly (president and CEO of private-label producer Flagstone Foods), stresses the snack nuts industry must be aware of the less-bright spots. While reflecting on the industries’ recent sales figures, he believes any declines can be attributed to one primary issue: the economic pressure that consumers are steadily enduring.
“With inflation and a reduced amount of discretionary income, consumers have had to make choices within their budgets,” he stresses. “In the past, they may have grabbed an extra bag or two of snack nuts or trail mixes, but we’re just not seeing the same behavior play out lately.”
Overly adds that consumers also are shifting where they make their snack buys—while grocery stores are still popular points, convenience stores, dollar stores, and quick-service restaurants have reported dollar share gains the last few months.
“Consumers [are] getting back to more of the on-the-go snacking occasions that did see a dip over the pandemic timeframe,” he says. “[This] shows that they are buying snacks for immediate consumption occasions, rather than buying and stocking up for future snacking.”
In response to the shift, Wonderful Pistachios has increased its points of distribution. According to Diana Salsa, vice president of marketing for Wonderful Pistachios, the company has rolled with the punches in various other ways as well: “As a vertically integrated company, we can mitigate a lot of challenges as we grow, harvest, process, distribute, and market our products,” she says.
Recent Wonderful Pistachios innovations include the No Shells Jalapeño Lime pistachios released in February. Salsa reports the pistachios have been so popular that sales are keeping pace with its best-selling flavor, No Shells Chili Roasted.
“During the pandemic, we saw consumers seeking out better-for-you items. While grocery store visits were down, cart values increased as shoppers stocked up,” Salsa reflects. “This shift towards healthy, shelf-stable options positioned Wonderful Pistachios as an essential pantry item that offers protein and doesn’t compromise on taste, allowing new consumers to discover our brand.”
Salsa says consumers want a balance of better-for-you options and indulgence. Joseph Setton, executive vice president of Setton Farms, agrees with Salsa, stating snackers want nutrition without sacrificing taste. Setton adds discerning shoppers are willing to pay a premium for products that hit all the marks. He also has noticed a consumer fondness for hot and spicy flavors the last 12 months. His company recently has added several heat levels to its lineup of dry-roasted Seasoned Pistachio Kernels, releasing flavors like Buffalo Wing and Scorpion Pepper. Last Fall Setton Farms launched Tajín flavored pistachios, seasoned with the popular spice blend.
“Tajín is one of the most versatile and loved spices, a unique combination of chili peppers, lime and sea salt, which blends perfectly with the delicious taste and high-nutrient value of our pistachios,” he notes.
Setton relates his company has noticed an interest in sustainable, responsible production, which Setton Farms feeds into with sustainability initiatives across all of its operations.
“We are seeing the demand for organic foods grow,” he explains. “So, at retail, we now offer an inshell dry-roasted, 7-ounce pistachio bag, and a kernel dry-roasted, 5-ounce pistachio bag. There has been a lot of talk about sustainability and holding growers, processors and manufacturers accountable for their environmental impact as well. As leaders in the effort to reduce waste, reuse resources and recharge the land, 100% of all waste products from our manufacturing process are converted back into valuable inputs for our orchards.”
Looking ahead
Overly stresses that in coming months, consumers’ discretionary income (along with many other economic factors) will continue to influence the overall snack foods industry. However, he reports he is optimistic about the industry’s future for one simple fact, above all others: consumers love to snack.
“According to Mintel’s February 2024 snacking report, approximately 29% of consumers said they are snacking more than a year ago, with 57% saying they are snacking about the same amount,” he observes. “Younger consumers (Gen Z and Millennials) are willing to experiment with new flavors too, which is why we—at Flagstone Foods—continue to invest in new innovative flavors and concepts for our retailer partners. Snacks provide a great way for consumers to treat themselves without making a big investment.”
Following its recent growth, Wonderful Pistachios execs are optimistic about the category’s future. In preparation for the coming months, the manufacturer is preparing to explore future flavor innovations, in order to “keep taste buds tingling,” according to Salsa. After reporting more than 10 years of growth, Wonderful Pistachios is analyzing the ways it can further market these innovations.
“Opportunities for cross-merchandising remain prevalent, as Wonderful Pistachios pair well with fresh and dried fruits, which is why they’re often in or near the produce section,” Salsa notes. “They’re also the perfect final touch for a picture-worthy charcuterie board.”
Aside from focusing on product placement, Wonderful Pistachios is planning to harness social media for brand awareness and consumer engagement purposes. For example, it leveraged TikTok creators to reach new audiences throughout its 2023 Get Crackin’ campaign. Also, merchandising will remain a priority for Wonderful Pistachios, as it steadily invests in in-store, point-of-sale displays, which are distributed nationally.
“We have a dedicated, in-house merchandising team whose primary goal is to help stores build larger than life displays,” Salsa states. “In fact, retailers that utilize our point-of-sale displays see up to two times higher sales velocities, on average.”
While looking ahead to the next 12 months, CJ McClellan, senior manager, strategic marketing, Blue Diamond Growers, is optimistic as well. First, he believes that recent market fluctuations “will even out,” resulting in “steady growth in the coming years.” Second, he thinks that new products will be released, leading to an increased interest in snack nuts.
“Consumers value nutrition, but flavor variety and indulgence will take precedence,” he stresses. “Products that have functional benefits and can be enjoyed beyond snack time are key to driving consumer interest and purchases.”
Further, McClellan advises manufacturers to offer products that meet each of these demands.
“The ever-increasing popularity of snacking and awareness of health benefits—associated with products like Blue Diamond Growers’ almonds—present growth opportunities for snack nuts, due to their nutritional values and abilities to satisfy consumers’ hunger,” he adds. “If these benefits can be leveraged and communicated properly, many inflation-related challenges can be overcome.”
Moreover, he believes that snack nut manufacturers should focus on attracting younger consumers by offering unique flavors, bold tastes, spotlighting nutrition, and delivering convenient packaging options, and connecting with engaging social media content.
