SNAC Time: Industry Association Discusses 2024 Priorities, Expectations
SNAC International, the predominant trade association overseeing the snack industry, operates as “the collective voice” for its constituents by advocating on public policy initiatives, providing a forum for collaboration and educational opportunities, and directing cooperation and networking across industry stakeholders.
Coming off the relative snack frenzy that occurred during COVID when people were eating more at home, the overall salty snack category posted 15.6% growth in 2022. Much of those gains have moderated with category dollar sales up 12.8% in the last year, according to the NielsenIQ Snackonomics report. Inflation is a big overall market factor here with prices doubling compared to total food and volumes down at least 2% as a result.
Yet, SNAC’s VP of messaging and communications David Walsh remains optimistic that there is still a lot of whitespace in snacking. Walsh took time recently to talk with Nosh about how the trade group is approaching the FDA’s 2024 agenda pertaining to food labeling and why he thinks snacking has new levers to pull in flavor and function to bring new consumers to the category.
What are the regulatory issues that SNAC is monitoring in 2024?
Sodium reduction has long been a priority for public health officials. In April, food producers are expected to comply with the Food and Drug Administration’s (FDA) initial voluntary sodium reduction targets. Within snacks, there are twelve subcategories calling for a 10-21% decrease in sodium levels.
SNAC has encouraged the agency to evaluate the impact of its short-term targets before moving forward on longer-term targets. Once the next edition of reduction targets is finalized [by December], snack producers will need to evaluate whether their products require reformulation to adhere to the new sodium levels.
In the area of labeling, the FDA is expected to release a proposal around front-of-pack (FOP) labeling by June. FOP labeling will require food manufacturers to update their packaging to include specific nutrition labels on the front of their food products.
FDA is also expected to release the final rule on the updated definition of “healthy.” In our comments to the FDA last year, SNAC recommended a criteria for “healthy” nutrient content claims that would provide greater flexibility for nutrient dense foods to qualify.
There has been a lot of talk about processed foods in the discourse on healthy eating trends. How is SNAC advocating for its constituents on this issue?
A food industry issue that has found its way into the mainstream is “ultra-processed.” Last year, SNAC engaged with the Dietary Guidelines Advisory Committee (DGAC) to reiterate the importance of processing, as many foods are processed for shelf stability, fortification, tailored product development and the addition of ingredients. Consumers often look to the snack category as a convenient and innovative source for delivering nutrition while also satisfying their own dietary restrictions and preferences. SNAC urged the DGAC to fully consider the many important benefits of processing such as affordability, accessibility, food safety, improving nutrition and reducing food waste.
What are some top snack trends to watch this year?
We anticipate a continued proliferation of innovative ingredients in the snack category to support specific functions, such as digestive health, mood support, sleep and performance management. A few trending ingredients to support these benefits include maca, super-greens, collagen, and nootropics like theanine and caffeine.
An increasing number of products will be marketed to discrete needs, for example, snack bars made with cashews to alleviate muscle soreness, and protein bars containing ashwagandha for its immune and brain health benefits. Additionally, allergen-friendly snacks will continue to grow, as 32 million Americans now have food allergies.
Where does SNAC see whitespace and avenues for innovation in the industry?
We’ve seen a rapid acceleration in flavor innovation. “Hot” has always been a trend, but we’ve increasingly seen a proliferation of hot flavors with added nuance, like the use of different types of peppers, and hot paired with cheese and citrus.
International flavors have also been a source for innovation. Globalization of flavors has become uniquely important, as consumers are eating out less, snack producers have the opportunity to deliver more “foodie” experiences at home.
We’ve also seen an increase in combinations – as in multiple products in the same bag, as well as crossover between brands. Also, snack producers can find success by incorporating new ingredients into formats that consumers already know and love (like chia and flax seeds in tortilla chips or tapioca starch into puffs). We’ll also see more snacks marketed directly to specific dayparts (breakfast or late night, for example) as well as to specific types of consumers — cyclists, hikers, and even business professionals — interested in sustaining energy throughout the day.
With more consumers returning to on-the-go lifestyles post-COVID and as more companies bring employees back into the office, I expect people to continue to rely on the category for nutrition and ‘mini meals’, which creates a wealth of opportunity for our category.
