Low Sugar Fruit Snacks Market By Product, By distribution channels, By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027

The Global Low Sugar Fruit Snacks Market size is expected to reach $3,785.9 million by 2027, rising at a market growth of 10.8% CAGR during the forecast period.

Low sugar fruit snacks are processed confectionery items that contain low or zero artificial sweeteners. There is a wide variety of low sugar fruit snacks available in the market including fruit strips, fruit bars, and others. The increasing purchasing power and changing consumer preference toward ready-to-eat & healthy convenience food products is expected to surge the demand for low sugar fruit snacks in the market.

Snacks are a crucial part of a person’s diet, which makes it important for the consumers to opt for healthy snacking. Due to this, the demand for healthier snacking alternatives such as low sugar fruit snacks is expected to increase in the coming years. These kinds of snacks offer a wide range of health benefits for the consumers and provide numerous nutrients like potassium, fiber and others. In addition, these snacks are available in various forms, design and color that sometimes signifies the fruit used in making these products.

COVID-19 Impact Analysis

During the initial phase of the COVID-19 pandemic, demand and sales of snacks have witnessed a decline. It is due to the imposition of lockdown, temporary ban on manufacturing units, and disruption caused in the supply chain. Panic buying of food supplies by consumers in the initial stage of lockdown has contributed to the huge spike in the sales of ready-to-eat food in retail distribution channels. The rapid decline in the consumption of processed and packaged food products has negatively impacted the snacks industry. The high demand for gluten-free, vegetarian, and meat-free low sugar snacks options among consumers is expected to support the growth of the low sugar fruit snacks market over the forecast period.

Market Growth Factors:

Growing consumption of convenience food products

There is a change in the lifestyle and food patterns of consumers across the world due to their hectic schedule, which motivates them to opt for food items that require less time to consume but give more nutritional value. Snacks are a very popular meal, which offers quick satiety and a much-required break in a hectic day. With the increasing awareness among consumers to reduce the risks of chronic diseases and maintain a healthy lifestyle, the demand for various health snack options has increased in the market.

Increasing prevalence of diabetes

Diabetes is a chronic disease in which a person’s blood glucose, also known as blood sugar, is very high. So, doctors recommend diabetic patients eat something between their meals to stabilize their sugar level. For this, patients consider low sugar fruit snacks for their consumption as it offers high nutrition value with no artificial sugar content. Due to the increasing cases of chronic diseases, especially diabetes, companies are investing more in the development of new snack options that can well-suit their snacking requirement.

Market Restraining Factor:

Difficulties faced in processing low sugar fruit snacks

There are many challenges faced by the manufacturers including the technological and processing problems, which are estimated to hinder the growth of the low sugar fruit snacks market. It is important to manufacture these products without compromising the quality and maintaining the real essence of various fruits. In addition, fruits easily get rotten and have less shelf life, which creates a problem for the manufacturers to process them to make their products.

Product Outlook

Based on Products, the low sugar fruit snacks market is segmented into fruit roll-ups, dried tropical fruit, fruit bars, and others. The dried tropical fruit segment is estimated to witness the fastest CAGR over the forecast period. This growth is attributed to the high popularity of tropical fruits among millennials. These dried tropical fruits are manufactured to remove any insects, damages, mold, and blemishes without adding up any preservatives or sugar.

Distribution Channel Outlook

Based on Distribution Channel the low sugar fruit snacks market is divided into online retailers, hypermarkets & supermarkets, convenience stores, and others. The online retailers segment is anticipated to display the fastest growth rate in the low sugar fruit snacks market over the forecast period. This growth is attributed to the rising penetration of smartphones and enhanced logistics infrastructure around the world. In addition, the rapid pace of digitalization across different nations is expected to also support the growth of the segment.

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The low sugar fruit snacks market is analysed across North America, Europe, Asia Pacific, and LAMEA. North America emerged as the leading region in the market with the highest revenue share in 2020. The shifting preference of millennials towards low sugar food products containing high nutritional content is expected to bolster the growth of the regional low sugar fruit snacks market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include PepsiCo, Inc., Nestle S.A., Danone, S.A., Ferrero Group, Calbee, Inc., Tyson Foods, Inc., Chaucer Foods Ltd. (Pilgrim Food Group PLC), Welch Foods, Inc., and WALLAROO.

Recent Strategies Deployed in Low Sugar Fruit Snacks Market

• Mar-2021: Nestlé introduced Nestlé Incoa, a sugar-free chocolate bar made with cocoa berry. The launch enables Nestlé to distribute delicious dark chocolate along with combining agricultural side-streams into their value chain.
• Feb-2021: Welch launched Welch's Juicefuls, a gluten-free, preservative-free candy for children. The product features extraordinary shots of fruit juice in the centers and a genuine & distinctive substitute to other snacks.
• Jan-2021: Kellogg's expanded its W.K Kellogg product portfolio by unveiling a new 'healthy' snacks bar made from genuine fruits and vegetables. The new snacks bar contains no synthetic colors, added sugar, or flavors. It's a source of fiber and carries less than 100 calories. The bar gives parents mental satisfaction because they don't need to worry about their children's unhealthy food consumption.
• Jul-2019: The Ferrero Group completed the acquisition of pie burst, ice cream cone, cookie, fruit, and fruit-flavored snack from Kellogg Company. Through this acquisition, the company focused on strengthening its position in the North American market.
• Mar-2018: PepsiCo took over Bare Foods Co (Bare Snacks), a U.S.-based manufacturer of cooked fruit and vegetable munchies. Under this acquisition, Bare Snacks is expected to expand its product portfolio and offer consumers more optimistic nutrition alternatives.

Scope of the Study

Market Segments Covered in the Report:

By Product

• Fruit Bars
• Dried Tropical Fruit
• Fruit Roll-Ups
• Others

By Distribution Channels

• Hypermarkets & Supermarkets
• Convenience Stores
• Online Retailers
• Other Distribution Channels

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• PepsiCo, Inc.
• Nestle S.A.
• Danone, S.A.
• Ferrero Group
• Calbee, Inc.
• Tyson Foods, Inc.
• Chaucer Foods Ltd. (Pilgrim Food Group PLC)
• Welch Foods, Inc.
• WALLAROO

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