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More and more Americans eat smaller portions of food more frequently throughout the day, and there is universal agreement in the food industry that this megatrend is here to stay. Another cultural shift that adds fuel to a hot healthy-ingredient snacks market is the high priority placed by many adult consumers on making sure that the food they—and their kids—eat passes nutritional muster. This new Packaged Facts report shows how these consumer trends are converging to produce a new generation of snackers attracted by the “health halo” surrounding healthy-ingredient snacks and to create the conditions for a vibrant market.

The healthy-ingredient snacks market is marked by a continuous quest on the part of both marketers and consumers for the next best product offering. The market is characterized by a continuous flow of new products based on inventive flavor combinations, exciting ingredient ideas, innovative formats and shapes, exotic fruits and vegetables, “superfoods” claiming to provide outsized health benefits, bold contrasts of sweet and salty, and novel and unexpected amalgamations of spices and heat from around the world.

Marketers of healthy-ingredient snacks take full advantage of the health-halo effect, a phenomenon that leads consumers to perceive that food products with certain claims, such as “organic” and “natural,” are healthier or safer for them. Healthy-ingredient snacks commonly carry labeling that sets them apart with objective characteristics such as non-GMO, vegan or organic. They also often are labeled more subjectively as being “local,” “pure,” “real,” “natural,” “safe,” “clean,” “minimally processed” and “allergy-friendly.”

One of the key findings of this Packaged Facts report is that the brightest and shiniest health halos encircle healthy-ingredient snacks coming from small, boutique marketers. These often are family-run and given to cause marketing. They frequently use locally sourced ingredients and almost always highlight their concern for the global environment as well as the health and well-being of their customers.

The products marketed by these healthy-ingredient snacks marketers appear all the more safe, healthy and authentic because their founders have a deeply personal story to tell about why they got into the snacks business. These fledgling entrepreneurs are passionate about their products and are able to leverage their enthusiasm with consumers. The reports suggests that one of the challenges facing the mega-marketers dominating the packaged foods industry in America today will be whether they can find ways to make consumers trust the healthy-ingredient snacks marketed by multinational corporations to the same extent that consumers feel confident in the products marketed by small, personalized niche firms.

Market Definition

This Packaged Facts report defines the market for healthy-ingredient snacks based upon the following product categories and types tracked by IRI InfoScan Reviews: cereal/granola bars (including granola bars, breakfast/cereal/snack bars and all other snack/granola bars); snack nuts and seeds (including snack nuts, sunflower/pumpkin seeds and toasted corn nut snacks); dried fruit snacks (including fruit rolls/bars/snacks; apple chips; and dried fruits); and trail mix and other sweet/salty snacks (including nutritional snacks/trail mixes; chocolate covered salted snacks; and carob/yogurt coated snacks). The report also analyzes analogous product categories from two other sources of primary data—Simmons National Consumer Study (NCS) and SPINSscan—and highlights healthy-ingredient snack trends appearing in other relevant IRI product categories not included in the main market categories as defined above.

Methodology

The first source of primary data used in this report is IRI InfoScan Reviews as described above. The second is the Winter 2013 Simmons National Consumer Study (NCS), which was fielded between January 2012 and March 2013. The report also includes data from the SPINSscan from SPINS, Inc., which tracks sales in the natural supermarket and specialty gourmet supermarket channels.

The report is also based upon data collected from field surveys of food retailers in various channels as well as a wide range of industry sources, including company websites, trade publications, business newspapers and magazines; consumer blogs; and annual reports, 10Ks and other releases from public companies.

Table Of Contents

Healthy-Ingredient Snacks in the U.S.: Cereal/Granola, Fruit, and Seed/Nut Snacks and Bars
Chapter 1 Executive Summary
Market Definition
Methodology
Market Overview
Table 1-1 U.S. Retail Sales of Healthy-Ingredient Snacks, 2008-2013 (in million $)
Table 1-2 Projected U.S. Retail Sales of Healthy-Ingredient Snacks, 2013-2018 (in million $)
Insights and Opportunities
Healthy-Ingredient Snack Marketers Leverage Health-Halo Effect
Major Food Marketers Capitalize on Snacks Mania
Helping Consumers Eat on the Go
Marketers Turn to Ancient Grains
Seaweed Is the New Kale as Superfoods Flood the Market
Gluten-Free Snacks Key Part of Market
Bold and Spicy Flavors Heat Up Market
Healthy-Ingredient Snacks Can Boost Center-Store Prospects
The Competitors
Operating in a Competitive Environment
Shares by Market Segment Analyzed
Marketing and New Product Trends
Saving the World, One Healthy Snack at a Time
Personal Connection with Consumers Key
Healthy-Ingredient Snack Marketers Vie for Shiniest Health Halo
School-Based Gardening and Healthy Eating Programs Favored
Traditional Marketing Approaches Still Work
Most Successful New Mass-Market Products Analyzed
Superfoods Lead the Pack of New Products
Consumer Trends
Continue Radical Transformation in Eating Habits
Number of Healthy-Ingredient Snackers Growing at Rapid Rate
All Kinds of Snacks Appeal
Healthy-Ingredient Snackers More Physically Fit
Demographics of Healthy-Ingredient Snackers Differ
Healthy-Ingredient Snacking Part of Broader Regime
New Food Products Popular
Chapter 2 Insights and Opportunities
Topline Insights
Changes in Eating Habits and Elevated Concerns about Food Safety and Health
Figure 2-1 Percent Growth in Number of Adults Agreeing “I Usually Only Snack on Healthy Foods” AND “I Eat Several Small Meals throughout the Day,” 2004-2013
Major Food Marketers Capitalize on Snacks Mania
Table 2-1 Snacks as Percent of U.S. Dollar Sales of General Mills, 2011 vs. 2013 (in million $)
Table 2-2 Snacks as Percent of U.S. Dollar Sales of Kellogg Company, 2010 vs. 2012 (in million $)
Marketers of Healthy-Ingredient Snacks Leverage Health Halo
Upstart Entrepreneurs Raise the Bar and Set the Tone
Helping Consumers Eat on the Go
Marketers Turn to Ancient Grains
Seaweed Is the New Kale as Superfoods Flood the Market
Gluten-Free Snacks Key Part of Market
Bold and Spicy Flavors Heat Up Market
Snack Flavors and Ingredients from Exotic Global Sources
Almonds and Pistachios Set the Pace
Table 2-3 Almonds as Percent of Total Sales of John B. Sanfilippo and Son, Inc., 2011 vs. 2013 (in thousand $)
Marketers Bid to Place Healthy Halo around Popcorn
Healthy-Ingredient Snacks Can Boost Center-Store Prospects
Drugstores Look to Chip Away at C-Store Share
Market Opportunities
It's a Women's World
Table 2-4 Gender and Age of Healthy-Ingredient Snackers by Volume of Healthy-Ingredient Snacks Consumed (in thousands)
Kids Matter in Healthy-Ingredient Snacks Market
Table 2-5 Households with Adults Consuming Healthy-Ingredient Snacks by Presence of Children and Number of Healthy-Ingredient Snacks
Consumed in Last 30 Days (in thousands)
Young C-Store Shoppers Offer Significant Potential
Figure 2-2 Percent of Healthy-Ingredient Snackers Making Four or
More Visits to a Convenience Store in the Past Four Weeks, 18- to 34-Year-Old Men vs. All Healthy-Ingredient Snackers
Wide Range of Marketing Approaches
Web Marketing More Effective with Healthy-Ingredient Snackers
Table 2-6 Types of Internet Advertising Leading to Purchase: Healthy-Ingredient Snackers vs. Other Adults
Table 2-7 Online Purchasing Patterns: Healthy-Ingredient Snackers vs. Other Adults
Healthy-Ingredient Snackers Heavily Involved in Social Media
Table 2-8 Number of Times Visiting Facebook and Twitter in Last 30 Days:
Healthy-Ingredient Snackers vs. Other Adults
Table 2-9 Impact of Social Media, Healthy-Ingredient Snackers vs. Other Adults
Healthy-Ingredient Snacks Table of Contents
September 2013 © Packaged Facts ix
Healthy-Ingredient Snackers Open to Cellphone Ads
Table 2-10 Receptivity to Ads on Cellphones: Healthy-Ingredient Snackers vs. Other Adults
Coupons Sway Healthy-Ingredient Snackers to Try Out New Food Products .. 29
Figure 2-3 Percent Agreeing “Often I Can Be Swayed by Coupons to Try
New Food Products”: Healthy-Ingredient Snackers vs. Other Adults
Grassroots Marketing Efforts Can Fall on Fertile Ground with High-Volume
Healthy-Ingredient Snackers
Figure 2-4 Percent Agreeing “I Am Good at Convincing Others to Try New
Things”: Healthy-Ingredient Snackers vs. Other Adults
Celebrity and Sports Event Marketing Efforts Are Effective
Figure 2-5 Percent Agreeing “I Am More Likely To Buy Products from
Companies that Sponsor Sports Teams and Sports Events”:
Healthy-Ingredient Snackers vs. Other Adults
Figure 2-6 Percent Agreeing “I Like to Buy the Same Products that
Celebrities Use”: Healthy-Ingredient Snackers vs. Other Adults
Ads in Traditional Media Effective Too
Table 2-11 Impact of TV and Magazine Advertising and TV Product
Placement on Healthy-Ingredient Snackers by Number of
Healthy-Ingredient Snacks Eaten in Last 30 Days
Chapter 3 Market Trends
Historical Trends
Over Half of Adult Population Are Healthy-Ingredient Snacks
Table 3-1 Healthy-Ingredient Snackers as Percent of Adult Population by
Number of Healthy-Ingredient Snacks Consumed in Last 30 Days,
2004 vs. 20013
Table 3-2 Number of Healthy-Ingredient Snackers by Number of Healthy-
Ingredient Snacks Consumed in Last 30 Days, 2004 vs. 2013 (in thousands)
High-Volume Healthy-Ingredient Snackers Drive Growth in Market
Table 3-3 Number of Healthy-Ingredient Snacks Eaten by Adults in Last 30 Days, 2004 vs. 2013 (in thousands)
Table 3-4 Number of Healthy-Ingredient Snacks Eaten by Adults in Last 30 Days, 2004 vs. 2013 (in thousands)
Figure 3-1 Per Capita Consumption of Healthy-Ingredient Snacks in Previous 30 Days, 2004 vs. 2013
Granola Registers Largest Increase in Consumer Interest
Table 3-5 Number of Adults Consuming Healthy-Ingredient Snacks by Type of Snack Used Most, 2004 vs. 2013 (in thousands)
Market Size and Composition
Market for Healthy-Ingredient Snacks Registers Steady Growth
Table 3-6 U.S. Retail Sales of Healthy-Ingredient Snacks, 2007-2012 (in million $)
Snack Nuts and Seeds Most Successful Snack Category
Table 3-7 U.S. Retail Sales of Healthy-Ingredient Snacks by Type, 2012 (in million $)
Retail Distribution Channels
Convenience Stores Key Outlet
Figure 3-2 Share of U.S. Retail Sales of Healthy-Ingredient Snacks by Retail Channel, 2012
Nutritional Snacks/Trail Mixes Show Fastest Growth in Mass Market
Figure 3-3 Snack Categories as Percent of Total IRI-Tracked Dollar Sales of Healthy-Ingredient Snacks, 52 Weeks Ending June 16, 2013
Table 3-8 IRI-Tracked Dollar Sales of Healthy-Ingredient Snacks by Type, 52 Weeks Ending June 16, 2013 (in thousand $)
Volume Sales Down in Many Categories
Table 3-9 IRI-Tracked Sales of Healthy-Ingredient Snacks by Dollar and Volume Growth, 52 Weeks Ending June 16, 2013 (in thousands)
Fast-Growing Products Analyzed
Table 3-10 Healthy-Ingredient Snacks Products with the Fastest-Growing IRI-Tracked Dollar Sales by Category and Type, 52 Weeks Ending June 16, 2013
Smaller Marketers Are Responsible for Majority of Fastest-Growing Products
Table 3-11 Healthy-Ingredient Snacks Products with the Fastest-Growing
IRI-Tracked Dollar Sales, 52 Weeks Ending June 16, 2013 (in thousand $)
Natural Supermarket Channel Sales Show Major Uptick
Table 3-12 SPINSscan-Tracked Dollar Sales of Healthy-Ingredient Snacks in Natural Supermarket Channel by Type of Snack, 52 Weeks Ending August 3, 2013 (in thousand $)
Figure 3-4 Snack Categories as Percent of Total SPINSscan-Tracked Dollar Sales of Healthy-Ingredient Snacks in Natural Supermarket Channel, 52 Weeks Ending August 3, 2013
Specialty Gourmet Channel Registers Less Robust Growth
Table 3-13 SPINSscan-Tracked Dollar Sales of Healthy-Ingredient
Snacks in Specialty Gourmet Channel by Type of Snack, 52 Weeks Ending August 3, 2013 (in thousand $)
Figure 3-5 Snack Categories as Percent of Total SPINSscan-Tracked
Dollar Sales of Healthy-Ingredient Snacks in Specialty Gourmet
Channel by Type of Snack, 52 Weeks Ending August 3, 2013
Factors Affecting the Growth of the Market
Snacking Mania Here to Stay
Demographic Shifts, Especially Increase in Latino Population, Will Support Growth
Figure 3-6 Percent of Adult Consumers Eating Eight or More Healthy- Ingredient Snacks in the Last 30 Days: By Race and Hispanic Origin
As Moms and the Government Place Higher Priority on Healthy Eating for Kids, Sales Will Rise
Table 3-14 Households with Adults Consuming Five or More Healthy- Ingredient Snacks in Last 30 Days by Presence of Children (in thousands)
Continuous Product Innovation Will Aid Market Growth Small, Agile and Inventive Healthy-Ingredient Snacks Marketers Will
Help Stir Consumer Interest
Government Regulations Will Promote Healthy Snacking
Healthy-Ingredient Snacks Table of Contents
September 2013 © Packaged Facts xi
Projected Market Growth
Robust Market Growth Anticipated
Market Expected to Grow 30.4% through 2018
Chapter 4 The Competitors
Overview…
Operating in a Competitive Environment
Figure 4-1 Marketers with Largest Shares of IRI-Tracked Dollar Sales of Healthy-Ingredient Snacks, 52 Weeks Ending June 16, 2013
Private Labels Major Force in Market
Table 4-1 IRI-Tracked Dollar Sales of Healthy-Ingredient Snacks by Leading Marketers and Their Major Brands, 52 Weeks Ending June, 16, 2013 (in thousand $)
Nature Valley Maintains Consumer Loyalty
Illustration 4-1 Nature Valley Chewy Granola Bars
Table 4-2 Percent Change in Number of Consumers Using Nutritional Snack Brands Most Often, 2011 vs. 2013 (in thousands)
Marketer and Brand Shares by Market Segment
Private Labels Lead Snack Nuts and Seeds Segment
Figure 4-2 Marketers with Largest Shares of IRI-Tracked Dollar Sales of Snack Nuts and Seeds, 52 Weeks Ending June 16, 2013
Table 4-3 IRI-Tracked Dollar Sales of Snack Nuts and Seeds by Leading Marketers and Their Major Brands, 52 Weeks Ending June, 16, 2013 (in thousand $)
Kellogg and General Mills Brands Tops in Cereal/Granola Bars
Figure 4-3 Marketers with Largest Shares of IRI-Tracked Dollar Sales of Cereal/Granola Bars, 52 Weeks Ending June, 16, 2013
Table 4-4 IRI-Tracked Dollar Sales of Cereal/Granola Bars by Leading Marketers and Their Major Brands, 52 Weeks Ending June, 16, 2013 (in thousand $)
General Mills Leads Marketers of Dried Fruit Snacks
Figure 4-4 Marketers with Largest Shares of IRI-Tracked Dollar Sales of Dried Fruit Snacks, 52 Weeks Ending June, 16, 2013
Table 4-5 IRI-Tracked Dollar Sales of Dried Fruit Snacks by Leading Marketers and Their Major Brands, 52 Weeks Ending June, 16, 2013 (in thousand $)
Marketers of Trail Mix and Sweet/Salty Snacks Show Gains
Figure 4-5 Marketers with Largest Shares of IRI-Tracked Dollar Sales of Nutritional Snacks/Trail Mix and Other Sweet/Salty Snacks, 52 Weeks Ending June, 16, 2013
Table 4-6 IRI-Tracked Dollar Sales of Trail Mix and Other Sweet/Salty Snacks by Leading Marketers and Their Major Brands, 52 Weeks Ending June, 16, 2013 (in thousand $)
Competitive Trends
General Mills Bets on Healthy-Ingredient Snacks and C-Stores
Table 4-7 Retail Sales by General Mills 2011-2013, Snacks vs. Other Divisions (in million $)
Figure 4-6 Snacks as Percentage of Total U.S. Retail Sales of
General Mills, 2008-2013 (in million $)
As Mondelez Steps Back from Healthy-Ingredient Snacks, Brynwood Partners Gains
Illustration 4-2 Back to Nature Nuts
Table 4-8 IRI-Tracked Dollar Sales of Healthy-Ingredient Snacks Products of Brynwood Partners, 52 Weeks Ending June, 16 2013 (in thousand $)
Annie's Set to Push into Mainstream Channels
Illustration 4-3 Annie's Fruit Snacks
Table 4-9 Dollar Sales of Snacks by Annie's, 2012 vs. 2013 (in million $)
NatureBox Plans to Compete by Selling Directly to Consumers
Illustration 4-4 Spice of Life Box
Chapter 5 Marketing and New Product Trends
Marketing Trends
Saving the World, One Healthy Snack at a Time
Table 5-1 Excerpts from Websites of Healthy-Ingredient Snacks Marketers Pledging Environmental Responsibility and Global Stewardship
Personal Connection with Consumers Key
Table 5-2 Excerpts from Websites of Healthy-Ingredient Snacks Marketers Telling Personal Stories of Founders
Marketers Compete for Shiniest Health Halo
Table 5-3 Excerpts from Websites of Healthy-Ingredient Snacks Marketers Promising Pure and Healthful Products
Marketers Support School-Based Gardening and Healthy Eating Programs
Illustration 5-1 Annie's “Gardens of Goodness”
Enjoy Life Foods Sponsors Food Allergy PSA
Most Successful New Mass-Market Products
Table 5-4 New Healthy-Ingredient Snacks Products with the Highest IRI-Tracked Dollar Sales by Category and Type, 52 Weeks
Ending June 16, 2013
Table 5-5 New Healthy-Ingredient Snacking Products Ranked by IRI-Tracked Dollar Sales, 52 Weeks Ending June 16, 2013 (in thousand $)
Navitas Naturals Launches Dragonfruit Slices
Illustration 5-2 Dragonfruit Slices
Snikiddy Introduces Kale
Illustration 5-3 Snikiddy Eat Your Vegetables
Momma Chia Debuts the Chia Squeeze
Illustration 5-4 Chia Squeeze
Himalania Adds Hemp and Black Chia Seeds to Its Product Line
Illustration 5-5 Himalania Hemp Seeds
Sahale Snacks Unveils New Products
Illustration 5-6 Sahale Pomegranate Pistachios
Healthy-Ingredient Snacks Table of Contents
September 2013 © Packaged Facts xiii
Kellogg's Special K Introduces Nutrition Bars Made with Quinoa
Illustration 5-7 Special K Nourish Nutrition Bar
Kind Healthy Snacks Debuts Gluten-Free Granola Bars
Illustration 5-8 Kind Healthy Snacks Healthy Grains Bars
Mrs. May's Naturals Introduces New Line of Healthy-Ingredient Snacks
Illustration 5-9 Mrs. May's Roasted Seaweed Almond Rice Stix
Chapter 6 Consumer Trends
Trends in Eating and Snacking Behavior
Consumers Continue Radical Transformation in Eating Habits
Table 6-1 Importance of Meals, 2004 vs. 2013
Table 6-2 Changes in Eating Habits, 2004 vs. 2013 (in thousands of adults) . 113
Table 6-3 Changes in Eating Habits, 2004 vs. 2013 (% of adult population) .. 113
Number of Healthy-Ingredient Snackers Growing at Rapid Rate
Table 6-4 Number of Adults Consuming Snacks in Last 30 Days by Type of Snack, 2004 vs. 2013 (in thousands)
Healthy Snacking Population Grows Faster in Households without Children . 114
Table 6-5 Snacking Trends among Adults by Presence of Children in Household, 2013 vs. 2004 (in thousands)
Healthy-Ingredient Snackers Indulge in All Kinds of Snacks
Table 6-6 Household Consumption of Snacks by Households with High-Volume Healthy-Ingredient Snackers and without Children
Demographic Insights
Healthy-Ingredient Snackers More Physically Fit
Figure 6-1 Percent Participating in Physical Fitness Program, Healthy-Ingredient Snackers vs. Other Adults
Table 6-7 Number of Times per Week Participated in Physical Fitness Program: Healthy-Ingredient Snackers vs. Other Adults
Healthy-Ingredient Snackers vs. Other Consumers
Table 6-8 Demographic Profile of Healthy-Ingredient Snackers by Volume of Healthy-Ingredient Snacks Consumed
Different Snacks Attract Different Folks
Table 6-9 Demographic Profile by Type of Healthy-Ingredient Snack Eaten Most Often
Vast Differences between Latino Healthy-Ingredient Snackers and Other Latinos
Table 6-10 Demographic Profile of Latino Healthy-Ingredient Snackers by Volume of Healthy-Ingredient Snacks Consumed
Consumer Attitudes
Healthy Snacking Linked to Strong Views on the Environment
Table 6-11 Attitudes of Healthy-Ingredient Snackers toward Environmental Practices of Corporations by Number of Healthy-Ingredient Snacks Eaten in Last 30 Days
Early Adopters and Trendsetters
Table 6-12 Potential Impact of Grassroots Marketing on Healthy-Ingredient Snackers by Number of Healthy-Ingredient Snacks Eaten in Last 30 Days
Advertising and Product Placement Effective
Table 6-13 Receptivity to Advertising by Healthy-Ingredient Snackers by Number of Healthy-Ingredient Snacks Eaten in Last 30 Days
Table 6-14 Impact of Product Placement on TV on Healthy-Ingredient Snackers by Number of Healthy-Ingredient Snacks Eaten in Last 30 Days
Cable Channels Popular with Healthy Snackers Skew toward Younger Viewers
Table 6-15 Cable TV Channels More Likely to Be Watched by Healthy- Ingredient Snackers
Magazines Ads Attract Attention of Healthy-Ingredient Snackers
Table 6-16
Importance of Magazines to Healthy-Ingredient Snackers by Number of Healthy-Ingredient Snacks Eaten in Last 30 Days
Table 6-17
Magazines More Likely to Be Read or Looked Into in the Last Six Months by Adults Consuming Five or More Healthy-Ingredient Snacks in Last 30 Days
Food and Food Shopping
Healthy Snacking Part of Broader Healthy Eating Regime
Table 6-18 Attitudes of Healthy-Ingredient Snackers toward Healthy Eating by Number of Healthy-Ingredient Snacks Eaten in Last 30 Days
Healthy-Ingredient Snackers Have Ecumenical View of Food
Table 6-19 Attitudes of Healthy-Ingredient Snackers toward Food by Number of Healthy-Ingredient Snacks Eaten in Last 30 Days
Figure 6-2 Percent Agreeing “I Really Enjoy Cooking,” Healthy-Ingredient Snackers vs. Other Adults
Healthy-Ingredient Snackers Like to Experiment with New Food Products
Table 6-20 Attitudes of Healthy-Ingredient Snackers toward Trying out New Foods by Number of Healthy-Ingredient Snacks Eaten in Last 30 Days
Healthy Snackers Spend More in the Grocery Store
Figure 6-3 Percent Spending an Average of $125 per Week on Groceries, Healthy-Ingredient Snackers vs. All Adults
High-Volume Healthy-Ingredient Snackers More Likely to Choose Organic Foods
Figure 6-4 Percent Living in Household Using Organic Foods, Healthy-
Ingredient Snackers vs. Other Adults
Table 6-21 Use of Organic Foods by Healthy-Ingredient Snackers by Number of Healthy-Ingredient Snacks Eaten in Last 30 Days
Healthy-Ingredient Snackers without Kids Have Calories on Their Mind in the Supermarket
Table 6-22
Household Use of Groceries by Presence of Children
Trader Joe's and Whole Foods Not the Only Grocery Chains to Draw Healthy-Ingredient Snackers
Table 6-23 Percent of Shoppers Eating 8+ Healthy-Ingredient Snacks in Last 30 Days by Supermarket Shopped in Last Four Weeks

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