The snacking industry is on a steady growth trajectory, fueled by shifts in lifestyle and consumer preferences. As the line between meals and snacks continues to blur, people are turning to convenient, innovative and health-focused options. This trend is expected to continue working in favor of the snack food market, opening up opportunities for companies to capitalize on innovation and market expansion.
From Health to Indulgence: Trends Driving Snack Innovation
Healthier lifestyles are taking center stage, and snacks are no exception. People are looking for options that not only satisfy their hunger but also provide added benefits like a boost of energy or improved gut health. This has led to a surge in plant-based snacks, whole-grain products and nutrient-rich offerings.
At the same time, indulgence still has a special place. Snacks that bring rich flavors, unique ingredients or even a nostalgic touch continue to be in high demand. Many consumers are striking a balance, embracing healthier choices while indulging in occasional treats. For those on the go, convenience is key. Single-serve packages and resealable multipacks have become staples for busy professionals, students, and families, making snacking effortless and portable.
Meanwhile, the rise of e-commerce is revolutionizing how snacks reach consumers. From personalized snack boxes to online-exclusive products, companies are finding creative ways to connect with their audience and cater to individual preferences.
The snack food market is quite a dynamic space, offering a mix of stability and growth that makes it highly attractive. Among the many players, we have picked three companies that stand out for their strong market presence, innovative strategies and global reach. These companies are not only keeping up with the trends but are also setting the stage to lead the way in 2025 and beyond.
Three Snack Titans in Focus
Mondelez International, Inc. MDLZ is known for combining indulgence with wellness and is backed by iconic brands such as Oreo, Ritz and Belvita. The Zacks Rank #3 (Hold) company continues to innovate with launches like Clif Bar’s plant-based protein snacks and premium chocolate lines under Green & Black’s. These products cater to both health-conscious and indulgent consumers. Recent acquisitions of wellness-focused brands have broadened Mondelez’s product range and appeal, aligning with rising consumer demand for functional and ethical snacks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Mondelez also has a strong foothold in emerging markets, which are witnessing rapid growth in snacking demand. By balancing indulgence with innovation and leveraging its global reach, MDLZ is well-positioned to thrive in 2025. The Zacks Consensus Estimate for the company’s 2024 and 2025 sales is pegged at $36.6 billion and $38 billion, respectively, suggesting year-over-year growth of 1.6% and 3.8%.
Mondelez International, Inc. Price, Consensus and EPS Surprise
Mondelez International, Inc. price-consensus-eps-surprise-chart | Mondelez International, Inc. Quote
PepsiCo, Inc.’s PEP snack portfolio is a powerhouse featuring household names like Lay’s, Doritos and Cheetos. The company’s ability to adapt to market trends ensures it remains at the forefront of the snacking space. PepsiCo has expanded its "Better for You" product line, introducing options like Baked Lay’s and PopCorners. The company has also leveraged its strong digital footprint and direct-to-consumer initiatives to cater to changing shopping habits.
Emerging markets present significant growth opportunities, and PepsiCo’s international presence positions it to capitalize on this demand. With a diversified portfolio and focus on innovation, this Zacks Rank #3 company is well-placed for sustained growth. The consensus mark for PEP’s 2024 and 2025 sales is pegged at $92.1 billion and $94.8 billion, respectively, suggesting a year-over-year increase of around 7% and 5.4%.
PepsiCo, Inc. Price, Consensus and EPS Surprise
PepsiCo, Inc. price-consensus-eps-surprise-chart | PepsiCo, Inc. Quote
General Mills, Inc. GIS has evolved beyond its legacy image as a cereal and packaged food company, becoming a formidable player in the snacking category. Its growth strategy revolves around innovation, consumer-centricity and global expansion. The Zacks Rank #3 player owns popular snack brands like Nature Valley, Betty Crocker and Annie’s. General Mills has made strides in offering better-for-you snacks, with organic and gluten-free options under the Annie’s and Larabar brands.
GIS is also leveraging its international presence to tap into snacking growth in emerging markets, with a focus on localized flavors and offerings. With its ability to innovate and adapt, General Mills is poised to sustain its momentum and thrive in 2025. The Zacks Consensus Estimate for GIS’ fiscal 2025 sales is pegged at nearly $20 billion, indicating a year-over-year increase of 0.8%.
General Mills, Inc. Price, Consensus and EPS Surprise
General Mills, Inc. price-consensus-eps-surprise-chart | General Mills, Inc. Quote
As the snacking industry continues to thrive, Mondelez, PepsiCo and General Mills are setting the stage for lasting success in 2025 and beyond.
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