Purveyors of puffed and extruded snacks had reasons to celebrate this year—most of the products (except one—sorry, pork rinds) were up in terms of dollar sales, and some subcategories and brands within them enjoyed double-digit increases over the past year. These bites of good news indicate consumers keep reaching for these airy edible treats, and producers are optimistic that the trend will continue.

Market data
The corn snacks category—which brought in $2.7 billion during the 52-week period ending April 21, 2024, according to Circana (Chicago)—was dominated by Frito-Lay/PepsiCo brands. Fritos corn chips took in nearly half of the category, with $1.4 billion (an increase of 5% over the previous year); Chester’s corn snacks came in second, with $471.9 million in sales (up a whopping 37.1%); and Popcorners took in $350.7 million—Cheetos-branded items in the column were found further down the rankings, bringing in $29.4 million (a decrease of 4%). Private-label offerings, which typically rank higher in various snack subcategories, were at $75.2 million for the period, a boost of 52.1%.

Source: Circana OmniMarket™ Total Store View | Geography : Total US - Multi Outlet w/ C-Store (Grocery, Drug, Mass Market, Convenience, Military and Select Club & Dollar Retailers) | Time : Latest 52 Weeks Ending 04-21-24

Cheetos reigned in the cheese snacks category—of the $4 billion in sales the subcategory earned in dollar sales, the Frito-Lay brand took in $3.2 billion (a jump of 10.8% compared to the previous period). Kellanova’s Cheez-It-branded cheese snacks was a distant second, with $192.7 million, a decline of 20.6% over the previous year. Then, in third, private-label cheese snacks drew in $122.6 million, a figure that constitutes an 18.8% increase.

Pork rinds, which Snack Food & Wholesale Bakery reported flagged slightly in the last State of the Industry report, slid a tiny bit more during the past 12-month period—it brought in $624.2 million, which constitutes a dip of 1.4%. Baken Ets (another Frito-Lay-owned line) topped the chart with $132.9 million in sales (an increase of 2.7%), followed by Benestar Brands’ Mac’s Pork Skins ($100.6 million, a downhill of 13.6%). Private-label pig skins ranked third in the subcategory, with $86.6 million (a jump of 16.2%).

Looking back
While consumers continue to spend on traditional snacks in the puffed and extruded arena, they are showing increased interest in better-for-you bites.

“The puffed and extruded category is growing as consumers continue to look for healthier alternatives to conventional options,” remarks Maiko Shimano, director of marketing at Calbee America. “Thanks to our commitment to crafting tasty snacks with powerful, veggie-based nutrition from peas, beans, or lentils as the No. 1 ingredient, we’re happy to share that Harvest Snaps is one of the brands driving growth within the BFY puffed/extruded snack market.”

Challenges like ongoing supply chain disruptions, labor shortages, rising raw materials, and other concerns persisted—but so did snack producers, according to Lauren Koston, owner of Pork King Good.

“Despite these issues, the industry adapted by optimizing supply chains, increasing automation, and improving workforce management,” she remarks. “Companies also focused on innovation to keep consumer interest high.”

Calbee introduced a number of innovations and tweaks, including rebranding its baked navy bean snacks from Harvest Snaps Selects to Harvest Snaps Crunchy Puffs.

“We created this lineup for the salty snack aisle and felt this new name better represented the products as tasty, puffed snacks, while communicating what the product is in a very clear, straightforward way, which is important for shoppers,” explains Shimano. “We also updated the packaging to put the puffs into focus and leverage Harvest Snaps’ brand equity. The lineup, which is available in zesty Loaded Taco, spicy White Cheddar Jalapeno, and savory-sweet honey Dijon, stands out among the crowd by delivering the bold flavors consumers crave while also providing wholesome, plant-based nutrition in a unique, irresistibly crunchy shell shape.”

Overall, Koston observes, BFY and other innovations provided opportunities.

“The pandemic-driven shift towards healthier eating and home snacking persisted, leading to increased demand for better-for-you snacks. E-commerce channels grew substantially, providing new avenues for sales and customer engagement,” she states.

Pork King Good, which offers BFY appeal to carb-conscious consumers, attracted attention with its dessert-y rind line.

“The idea of using sweet flavors in an entirely savory category has proven to excite distributors, retailers, and consumers,” she says. “Our retail partners love the incrementality the line creates by creating additional consumption occasions, and keto /keto-curious consumers are happy to finally have a better option for a sweet treat.”

Looking ahead
While puffed and extruded snacks have been largely on the rise, the problems producers have had to wrestle with in recent years are not likely to disappear in the near future.

“Inflation and potential economic downturns could impact consumer spending,” remarks Koston. “Also, ensuring a robust and flexible supply chain will be crucial to navigating future disruptions. Companies such as Pork King Good, which own and operate plants, are best suited to weather any supply chain challenges.”

She adds, “With rising costs, we fear the cost of doing business with major conventional retailers will continue to rise. Also, the proliferation of private-label items will continue to put pressure on brands. Brands like Pork King Good who focus on true innovation and unique, strong branding will continue to succeed.”

Then, the producer representatives engaged for this report expressed optimism about the future of the category, and that of their brands, including Shimano.

“The puffed and extruded snack market is growing, and I’m optimistic that Harvest Snaps will continue to perform well through strong innovations and always staying true to Calbee’s core values of making flavorful, fun snacks that support healthy lifestyles,” she states.

Koston echoes this bright outlook, sharing that “We are cautiously optimistic about the category’s growth over the next year. The continued demand for convenient, tasty snacks should continue to drive category growth. Historically, Pork King Good outpaces categorical growth rates, and we expect that to continue.”

Additionally, Koston says she sees two trends currently impacting the category to endure in the coming year.

“With health and wellness, this trend will likely continue to grow, with more consumers seeking snacks that align with their dietary preferences and health goals,” she predicts. “Expect to see more adventurous flavors and flavor combinations. Savory flavors in historically sweet categories, sweet flavors in predominantly savory categories, like our dessert line of pork rinds.”

Shimano predicts consumers will continue craving new and novel flavor adventures, with increased interest in tasting flavors from around the globe.

“The trend toward international flavors also continues to grow, and Calbee, which got its start in Japan in the 1970s, is in a great position to bring these global flavors to American consumers,” she states. “We’re expanding the presence of our Japanese legacy products in the U.S., and this includes our iconic Shrimp Chips, which are celebrating their 60th anniversary this year. These wheat-puffed snacks are made with sushi-grade, wild-caught shrimp and baked to an irresistible, light, and airy crunch.”

Shimano concludes, “I think the trend toward bold flavors paired with better-for-you ingredients will continue in the next year (and likely beyond).” SF&WB

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