Customized Report Service – Sweet biscuits, snack bars and fruit snacks in Canada

Retail environment and trends – Snacks in Canada

The retail value of the snack market is increasing in Canada, with a compound annual growth rate (CAGR) of 5.7% between 2018 and 2023. Snacks are grouped into four categories according to Euromonitor: confectionery; ice cream; savoury snacks; and sweet biscuits, snack bars and fruit snacks. Savoury snacks ranked first in 2023 for retail value and also had the largest growth from 2018 to 2023, with a CAGR of 6.8%. Sweet biscuits, snack bars and fruit snacks showed the slowest growth between 2018 and 2023, but still experienced strong growth. Ice cream had the lowest market share among the four categories.

Snack sales stagnated during the pandemic. With schools and workplaces reopening, snack sales have recovered.^{Footnote 1} Consumers once again need to buy small snacks that they can take with them to the office or school.

The growth trends observed from 2018 to 2023 are expected to continue through 2028. Savoury snacks should therefore maintain their place at the top of sales by value among snack categories. Snack bars will continue to grow at a slower pace than snacks as a whole.

The retail sales volume of snacks grew more slowly than the value of snack sales. This indicates that the value of products sold is increasing in Canada. This is particularly true for sweet biscuits, snack bars and fruit snacks, which showed only 0.2% CAGR between 2018 and 2023 by volume, much less than their value growth of 4.1% over the same period. Only ice cream experienced volume growth similar to its value growth, with a volume CAGR of 3.2% between 2018 and 2023 and a value CAGR of 5.9% over the same period.

These trends are expected to continue through 2028. Sweet biscuits, snack bars and fruit snacks are forecasted to have the lowest volume growth, with an expected CAGR of 0.8%, and ice cream are forecasted to have a CAGR of 4.2% over the same period, ranking first among snacks in Canada.

The two largest snack manufacturers in Canada are PepsiCo and Mondelez, with respective market shares of 15.1% and 10.9% in 2023. PepsiCo's market share is growing, while Mondelez's is declining. These are the only two companies in Canada with market shares above 10%. Otherwise, the market is fairly spread out. Private labels are popular in Canada, with a 10.1% market share in 2023, slightly lower than in 2018. Artisanal products are very marginal.

Lay's chips are the largest snack brand in Canada. Otherwise, the market is very spread out. Of the brands sold in Canada, 69.2% are outside of the top 10.

Retail environment and trends – Sweet biscuits, snack bars and fruit snacks

Snack bars are the subcategory of the sweet biscuits, snack bars and fruit snacks group with the largest share of retail sales by value in 2023, followed by sweet biscuits. Fruit snacks are the smallest subcategory, but had the highest growth over the 2018-2023 period, with a CAGR of 7.1%, versus 4.1% for the entire group.

Canadian manufacturers stand out for their innovation. Canadian consumers are increasingly seeking to purchase healthy, enriched and environmentally friendly products. Manufacturers are meeting this demand by providing products with less sugar, plant-based recipes, or added protein.^{Footnote 1}

Sweet biscuits are forecast to have the lowest growth rate of all sub-categories between 2023 and 2028, at 3.5%. Nevertheless, the retail sales value will increase from US$960 million in 2023 to $1.1 billion in 2028.

Sweet biscuits are the top subcategory for retail sales volume. However, growth is very slow, with a CAGR of 0.1% between 2018 and 2023. The volume of snack bars declined over the same period, with a negative CAGR, at −0.3%. Fruit snacks had the smallest volume but showed the largest growth between 2018 and 2023, with a CAGR of 2.8%.

The volume of snack bar sales was affected by the COVID-19 pandemic. Sales volumes started to decline in 2020, reached their lowest point in 2021 and 2022, and rebounded in 2023. Sales volume is expected to recover by 2028, with a CAGR of 1.2% over this period. Sweet biscuits will maintain their leading position, but their growth will remain slow, with a CAGR of 0.3% over this period.

Mondelez and General Mills are Canada's two largest manufacturers of sweet biscuits, snack bars and fruit snacks, with respective market shares of 13.9% and 13.2% in 2023. The market shares of these two companies have been growing since 2018. These are the only two companies in Canada with market shares above 10%. Private labels have a strong presence in the market, with a 13.0% share in 2023. This market share has been stable since 2018. Artisanal products are not present in the market.

Nature Valley and Quaker are the largest snack bar brands in Canada, while Oreo, Dare and Chips Ahoy! are the largest sweet biscuit brands in Canada. More than half of Canada's brands of sweet biscuits, snack bars and fruit snacks were outside of the top 10 in 2023.

Structural barriers and opportunities

Inflation is the biggest barrier to the growth of the sweet biscuits, snack bars and fruit snacks market. Consumers need to reduce their discretionary expenses as the cost of their basic expenses increases, and producers are facing higher production costs.^{Footnote 1}

Despite their declining purchasing power, Canadian consumers are still willing to pay more for natural or healthy products. Plant-based products are also gaining popularity. Manufacturers of sweet biscuits and snack bars are introducing new versions of their products to take advantage of these trends. For example, Wise Bites has launched a line of plant-based cookies that are slightly sweetened with fruit. Low-sugar, high-fibre and high-protein biscuits are becoming increasingly popular.^{Footnote 1}

Snack bars benefit even more from market trends. Snack bars tend to be a snack eaten between meals rather than a dessert. They must therefore be nourishing and satisfying. Consumers prefer snack bars that reflect healthy living habits.

E-commerce provides important opportunities for manufacturers of sweet biscuits, snack bars and fruit snacks. Digital sales are growing across Canada, and e-commerce allows businesses to sell their products directly to consumers, reducing the need for intermediary retailers.^{Footnote 1}

New product launch analysis

Description of above image

	2018	2019	2020	2021	2022	Total sample
Number of new products	613	579	527	420	412	2,551

Source: Mintel GNPD, 2023, all rights reserved.

Between 2018 and 2022, Mintel's Global New Product Database identified 2,551 new snack product launches in Canada, including 938 sweet biscuit launches, 929 snack bar launches, and 684 fruit snack launches.^{Footnote 2} 2018 saw the largest number of new snack bar and sweet biscuit launches of these 5 years, while 2022 saw the largest number of new fruit snack product launches.

The top three marketing claims indicate that new products must meet consumer demands. Private labels have launched many products in recent years: Loblaws, Walmart, and Sobeys are all in the top five companies for new launches. The vast majority of new products launched cost less than US$8.37, and more than half of new launches were for products costing less than US$4.36.

Examples of new product launches

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Resources

• Euromonitor International. Passport database. 2023
• Euromonitor International | June 2022. Snacks in Canada
• Euromonitor International | June 2022. Sweet Biscuits, Snack Bars and Fruit Snacks in Canada
• Mintel Global New Products Database (GNPD), 2023

Customized Report Service – Sweet biscuits, snack bars and fruit snacks in Canada
Global Analysis Report

Prepared by: Alexandre Holm Perrault, Market Analyst

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