The puffed and extruded snacks category is having a great year: all of its subcategories are up from the same time period last year, per Circana data, and consumers are returning to gatherings where snacks like Cheetos, Funyuns, and other snacks are omnipresent.

Market data
According to Chicago-based market research firm Circana’s data from the 52-week period ending July 16, the entire “salty snacks” category brought in $37.8 billion, up 14.9% from the previous year’s time period.

The “other salted snacks (no nuts)” subcategory brought in $7.6 billion of that, experiencing a 12.2% increase. Frito-Lay brought in $3.3 billion, a 15.4% increase; and Funyuns brand bringing in $698 million, a 34.3% increase. Frito-Lay’s SunChips brand brought in 35.1% and $509.4 million in sales.

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 7-16-23

In the cheese snacks subcategory, which brought in $3.8 billion in sales and increased by 10.6%; Cheetos brand brought in $3 billion, a 17.5% increase; and Cheez-It brought in $235 million, a 6.4% increase. Utz brand cheese snacks brought in $105.1 million, a 1.5% increase. Sensible Portions, bringing in $16.8 million, experienced a massive 690.2% increase in sales from the year before, and the Like Air brand brought in $5.8 million and increased in sales by 71.3%.

In the “corn snacks (no tortilla chips)” subcategory, which brought in $2.5 billion and had a 27.4% uptick from last year, Fritos brought in $1.3 billion of that, a 21.2% increase. Chesters brand (Frito-Lay) brought in $392.5 billion, a 78.7% increase. Cheetos’ corn snacks also brought in $35.2 million, a large 111% increase.


Trends
“The salty snack category took a step back during the pandemic—but we are now starting to see slow, but steady, progress forward,” says Nick Desai, CEO, PeaTos. “Still, inflation has been tough and has had an impact at the retail level.”

This year, PeaTos made good strides this year with its retail partners, building up distribution to 22,000 points nationwide, he says.

“Our newest packaging collaboration with Paramount on the August release of the latest Teenage Mutant Ninja Turtles movie means higher visibility and an opportunity to increase PeaTos’ brand recognition with Walmart and Sam’s Club shoppers nationwide,” Desai adds.

Maiko Shimano, senior marketing manager, Calbee America Inc., says that the demand for better-for-you puffed and extruded snacks remains strong, but consumers are also seeking exciting, bold-flavored options that are fun to eat.

“Products like Harvest Snaps Selects meet this need by offering a puffed snack that pairs super-tasty flavors like zesty Loaded Taco, smooth and spicy White Cheddar Jalapeno, and sweet and tangy Honey Dijon with plant-based nutrition from whole navy beans as the #1 ingredient. Another new, flavor-forward product from Harvest Snaps is Crunchy Loops Hot & Spicy, which is made with farm-picked red lentils as the first ingredient and features a top-selling flavor in the salty snack aisle,” she relates.

“In the puffed/extruded snacks category, we’re seeing an increased interest in international flavors, with consumers wanting to bring tastes from around the world to the comfort of their home. That is why Calbee America is expanding the presence of our Japanese legacy products and introducing them to mainstream U.S. grocers,” Shimano adds.

“These items are currently sold in Asian markets or in the ethnic aisle of select retailers. Product lines include JagaRico, tasty and crunchy potato sticks made with only with real potatoes and veggies that are available in Original and Hokkaido Butter flavors, plus our iconic Shrimp Chips, which will celebrate their 60th anniversary in 2024. These wheat-puffed snacks are made with sushi-grade, wild-caught shrimp and baked to a light, and airy crunch,” she expands.

Julia Hecht, CMO, Hippeas, says that the brand is committed to developing innovative, nutritionally superior products that inspire and enable motivated consumers to lead healthier lifestyles.

“Hippeas focuses on reinterpreting broadly appealing category favorites—like puffs—within a better-for-you framework. We use chickpea and/or yellow pea as [our] first ingredient because of all their superfood benefits. Consumers are looking for snacks like Hippeas that are a great source of protein and fiber in addition to being gluten-free and free from major allergens like soy, dairy, and nuts,” she shares.

“Chickpeas and other legumes are also earth friendly: they support a healthy and diverse farm by naturally keeping nutrients in the soil and also use less fertilizer by pulling nitrogen from the air, which helps lower our carbon footprint. At Hippeas, we believe that sustainable farming is the way forward,” Hecht adds.

“Last year, we launched a line of Veggie Straws made with sustainably grown yellow peas. We found that traditional veggie straws contained no nutritional benefit and were made from potato, so we made ours from a blend of veggies including yellow peas—it's the first ingredient—tomato, beet, spinach, and kale. The straws have 3g of protein and 140 calories per 1-ounce serving and come in a variety of flavors,” she notes.

“In terms of flavors, we’ve seen a lot of exciting innovation in the market. Whether it’s our own Sriracha Sunshine puffs flavor or other bold and spicy profiles, we’ve seen consumers excited about heat! We have a new innovation coming to the market in early 2023 that taps into this idea of extra and bold flavor—stay tuned for more from Hippeas in just a few months,” Hecht reveals.

Innovation
“Hippeas keeps up with current consumer interests by listening to what consumers are demanding: products that deliver delicious taste at the same time as being better-for-you and better-for the planet,” says Hecht.

“We are in constant communication with our consumers directly through channels like our website, email, or social media to keep a pulse on the market and know what consumers are looking for from Hippeas. We also routinely conduct surveys to understand consumer pain points and evolving dietary preferences that would lead to new product innovation,” she adds.

Consumer interests drive everything that Calbee does, Shimano says.

“Before launching products, we utilize multiple consumer research methods, including quantitative online research and qualitative focus groups. Getting feedback firsthand helps us understand unmet needs so our brands can play a key role in closing those gaps,” she notes.

“We also leverage several data platforms, such as Numerator or SPINS, for insights and to support our choices. In addition, our team is passionate about food and snacks—we’re curious about what’s in the market and always visit local stores when we travel to find inspiration to take back to our team at Calbee. We remember that we’re consumers ourselves, and follow our intuition about the brand and what we feel it should offer,” Shimano relates.

Desai says that PeaTos continues to keep its pulse on emerging consumer trends by soliciting feedback from both our retail partners as well as our consumers.

“We monitor and respond to our consumers’ feedback via social media across all platforms, and we take time to respond to their questions and concerns, which has proven to be very effective at building PeaTos’ brand loyalty,” he notes.

It was PeaTos’ consumers who first begged them to go all-plant based back in 2020, Desai shares.

“As a brand we listened, prompting our team to seek out and develop new proprietary technology that replicates the taste of dairy using only plant-based ingredients. As a small brand, we’re able to pivot more efficiently and quickly, which offers PeaTos a unique, distinct advantage. As a result, we’ve captured the attention of a brand new audience of consumers who look for a better-for-you plant-based snack experience that doesn’t sacrifice on taste, flavor, or crunch,” he finishes.

New products and sustainability
PeaTos just released two new flavor varieties in April of this year: Crunchy Fiery Lime Puffs, a mix of citrusy tang with spicy, and Crunchy Cheese-less Puffs, a plant-based “cheesy” snack, says Desai.

“The new puffs varieties offer the same great taste and crunch of the classic snacks that America grew up on, but without artificial ingredients,” he adds.

“PeaTos has some exciting new developments and promotions in the works, and we are quite confident that the brand will continue its rapid trajectory upward in 2024,” Desai predicts.

A lot of exciting things are happening over the next year for Hippeas, shares Hecht.

“On a product front, we’re building distribution on our newest Hippeas snack items—our Chickpea Tortilla Chips and our Veggie Straws. We’re also partnering with Universal Studios on their latest film, Migration, set to release in December; [we are] launching limited-edition multipacks of our Vegan White Cheddar Chickpea Puffs in support of the movie. We also have some new flavors coming to the market in 2023—stay tuned for more news in the coming weeks!” she exclaims.

As far as sustainability initiatives, Hippeas is spreading “The Peas & Love” by piloting a cutting-edge regenerative agriculture pilot program with Canadian specialty pulse and oat miller Avena Foods Limited, reveals Hecht.

“The collaboration includes the development of a field crop ‘living lab’ demonstration with Rosengren Farms, an Avena grower. Rosengren has over a decade of experience in the innovative practice of growing multiple crops in combination, which is also referred to as intercropping,” she explains.

“The purpose of Hippeas’ regenerative agriculture pilot program with Avena is to create a ‘living lab’ where we grow multiple crops—peas with canola, and chickpeas with flax—in combination, referred to as intercropping, to assess the impact on soil health and biodiversity. We will measure the impact of intercropping on soil health, biodiversity, and nutrient density,” she comments.

“We’re analyzing the benefits of double biodiversity by seeding a mixed field for greater resilience in the field to extremes of moisture, disease, and pest infestations. We’re really excited about this pilot program and look forward to sharing our findings and other exciting news later this year and in 2024,” Hecht adds. SF&WB