Increasing product innovations across global snacking industry offering superior taste and focused on health improvements is propelling the fruit snacks market growth. Rising demand for essential vitamins and minerals to boost immunity along with the benefit of improved fiber driving product demand. Changing consumer tastes & preferences, ease in availability of exotic fruits with enhanced production supported by favorable trade policies will contribute towards industry expansion.

Increasing consumer preference for premium and exotic flavors are expected to drive new products development by industry participants. Manufacturers are expected to launch products based on diverse fruits such as strawberry, cherry, kiwi, raspberry, citrus, and other fruits to differentiate their products. Penetration of online stores and improved product availability through supermarkets is generating new growth opportunities. Companies are focused on catering the children consumer segment by developing attractive packaging solutions and strategic product branding.

Sweet and savory segment accounts for over 37% of the global fruit snacks demand in 2018. Premium taste and product affordability and are among the key factors contributing to the segmental growth. Sweet & savory snacks are offered in various forms such as freeze-dried, extruded strips, bits, shapes, twists, and trail mixes, thereby fueling segment growth. Further, growing demand for high nutrient composition, fat-free and gluten-free fruit snacks is likely to escalate the industry expansion.

Banana-based fruit snacks are projected to witness over 9% CAGR from 2019 to 2025. Increasing concern pertaining asthma, high blood pressure, cancer, cardiovascular disease, diabetes, and digestive problems has fueled the product demand. Banana-based products are majorly consumed in the form of crunchy chips and banana bites. Latin America is the largest banana exporter, and the U.S. is the major importer in 2017. According to FAO, the global banana production has increased at 3.2% CAGR from 2000 to 2017. Also, the global banana imports have reached 18.3 million tonnes in 2018.

Mainstream stores dominated the global fruit snacks industry accounting for over 78% market share. It includes supermarkets, hypermarkets, and grocery stores. The supermarket is highly preferred in developed economies as a one-stop solution for all food & beverage requirements along with product availability at competitive prices. Increasing count of mainstream stores particularly in developing countries of Asia Pacific and the Middle East & Africa owing to rapid urbanization, favorable FDI policies, and economic growth will support the segmental growth.

North America holds over 30% share in the global fruit snacks market. The key factors attributing to the regional share include large consumer spending on premium snacks, high disposable incomes, and growing health consciousness. Favorable policies and regulations by the FDA and other agencies to improve the daily nutrient intake is likely to create new growth opportunities for industry participants. In addition, increasing penetration of gluten-free, organic, naturally flavored, and Non-GMO products owing to rising consumer spending on healthy snacking options fueling industry growth.

The global fruit snacks market share is highly competitive owing to the presence of a large number of regional manufacturers and multinational corporations. Major industry players include SunOpta, Bare Snacks, Sunkist Growers, General Mills, Welch?s, Kellogg Crunchies Natural Food, and Whitewave Services. The key strategies observed in the industry include product innovations, distribution channel expansion, and geographic expansion. For instance, in November 2018, Bare Snacks enhanced its product portfolio by launching a combo of strawberry banana chips.