Snack Food Manufacturers NAICS 31191

May 30, 2025 - More Snacking

• Nearly half (48.8%) of US consumers snack three or more times per day, up 2.7% over last year, according to a new report from market research firm Circana. Circana’s Snack Unwrap report published in April found consumers between the ages of 18-44 are the most frequent snackers. Nearly two-thirds of consumers (63.7%) say they want snacks that provide an energy boost, and 61.4% want high-protein snacks. The top categories for unit growth per the report are yogurt and yogurt drinks (up 4.9% year over year), followed by dried meat snacks, and crackers and frozen fruits. Chocolate posted the largest unit sales decline (down 3.4%). Given inflation’s impact on food prices, it’s no surprise that the retail channels that saw the largest rise in unit sales were dollar stores, up 6.6% YoY, and buy-in-bulk club stores, up 3.9%, last year.
• A growing emphasis on health and wellness among consumers is transforming the snacking industry, according to the Food & Flavour Outlook 2025 by food ingredient maker Griffith Foods. Consumers today are looking for snacks that do more than just taste good and satisfy hunger. Instead, they’re shopping for functional snacks that offer health benefits, leading to a rise in so-called functional snacking, with ingredients intended to enhance mental clarity, boost immunity, or improve digestion. Examples include gut-friendly snacks like granola bars infused with probiotics, fermented vegetable chips, yogurt-covered nuts, and collagen-boosting treats, according to Griffith Foods. As a result, start-up companies and major players like Mondelez and Nestlé are investing heavily in functional snack innovation. A report from The Business Research Company predicts that the global functional food market will reach $315 billion this year.

• The FDA in January banned Red Dye No 3 – an artificial dye linked to cancer in animals – from food following increasing scrutiny of artificial colors and other food additives and ingredients, The Wall Street Journal reports. The dye is most commonly used in baked goods, extracts and fillings, representing about 43% of products that contain it, according to a WSJ analysis of a USDA database. According to USDA data, candy, chocolate, chewing gum and mints represent 37% of products containing Red 3, while snacks and cereals make up about 7%. The federal ban followed a recent California law banning Red Dye No. 3 from foods sold in the state. Red 3 is already banned in most products in Europe and was banned from cosmetics in the US in 1990. The federal and California bans are set to take effect in 2027.
• Employment by snack food manufacturers shrank 2.3% in March compared to a year ago, while average wages at food manufacturers rose 2.7% year over year in April to $23.94 per hour, easing from their record high in January, according to the latest US Bureau of Labor Statistics data. Wages at food manufacturers have been rising since 2021 as the industry and broader manufacturing sector have struggled to hire and retain workers. Quarterly sales for food companies fell 2.5% year over year in the fourth quarter but were up 5.7% from Q3, according to the Census Bureau. Meanwhile, after-tax profits for food companies surged 45.9% YoY in Q4 and nearly 50% from Q3 amid higher producer prices.