North America Fruit Snacks Market Analysis

North America Fruit Snacks Market Analysis

The hot extruded type segment is anticipated to hold a substantial share in 2019, exceeding USD 1.1 billion in the North America fruit snacks market. Hot extruded segment offers product types such as extruded fruit strips, fruit twists, fruit straws fruit bits, fruit shapes, and fruit sandwiches. Growing popularity of hot extruded fruit snack products owing to benefits such as balanced filling of fruit juices and fruit purees, and requirement of shorter preparation time. Moreover, fruit snack manufacturer prefers hot extruded type due to their ability to produce puffy, crisp, and crunchy textures in fruit snack products.
 

Cold pressed bars and strips segment will grow at a CAGR over 4%between 2020 to 2026, owing to its application for production fruit snacks into bars or strips. The cold pressed bars and strips allow products to have a soft bite, smooth texture, tender mouthfeel, and also enable fruit snacks to resemble taste like consuming real fruit. Cold pressing method results in zero heat, minimal oxidization, and the highest integrity of the phytonutrients and vitamins in fruit snacks products.
 

The mixed fruit family segment registered sales over USD 350 million in 2019. The segment is dominated by mixed fruit bars and mixed berry fruit snacks. Varied tastes provided by mixing two different fruits accompanied by consumer preference for new flavor mixes is among the key factors driving the segment share. New product launches with different fruit mixes along with attractive branding is likely to propel the industry expansion.
 

Apple based fruit snacks is expected to witness noteworthy growth in the North America fruit snacks market owing to its superior nutritional value along with low calorie and sodium content. Additional health benefits including balancing of blood sugar levels, reduced risk of cancer, and a rich source of dietary fiber will boost the demand for apple flavored snacks in the market. Apple flavor snacks provides nutritional benefits without compromising on texture and taste, hence are gaining traction among all the age groups.
 

The mainstream stores segment is anticipated to hold a share over 65% in the North America fruit snacks by 2026, owing to the presence of an organized value chain, convenience, and easy accessibility to a range of items under one roof.  Key players including Walmart, Tesco, Loblaw Companies Limited, Metro Inc., Kroger, Albertsons, Sobeys Inc., Whole Foods Market, etc., have a strong foothold in the distribution of fruit snacks products. The increasing count of modern retail outlets including supermarkets and hypermarkets in the U.S. and Canada will boost the mainstream distribution channel segment statistics.
 

The online distribution network will emerge as the fastest-growing segment in the North America fruit snacks market. The share of online stores has increased in developed economies owing to busier lifestyles, cost-effectiveness, better discounts, and quick accessibility. The increased popularity of online sales channels has created potential opportunities for enhancing the fruit snacks sales through leading online retailers including Amazon, Walmart, Kroger, Real Canadian Superstore, Desert cart, Natural Direct Canada, The Gluten Free Shoppe, and Dollarama.
 

The U.S. accounted for majority share in the North America fruit snacks market in 2019. The increasing inclination of millennials towards convenience foods that have a high nutritional portfolio will drive product adoption in the U.S. High consumer spending on snacks is among the key factors supporting the market demand. For instance, according to Agriculture and Agri-Food Canada, 94% of consumers in the U.S. consume snacks at least once a day and 50% of consumers are likely to snack 2 to 3 times.