Functional snacks, personalization tech reshape snack innovation

The U.S. snacks market is projected to surpass $193.51 billion by 2030, according to MarkNtel Advisors. The firm reports a compound annual growth rate of about 2.18% between 2025 and 2030, reflecting steady consumer demand and continued product innovation.

The report notes that approximately 90% of Americans snack multiple times per day, and many regularly substitute snacks for meals. While convenience services operators can lean into this trend by offering a range of snacks to appeal to different dayparts, the balance of indulgent and functional products may shift depending on location demographics.

Growth is being driven by rising demand for protein-rich and functional snacks as consumers reach for high protein, plant-based and functional food options. Sales of protein-fortified snacks grew 16.8% year over year in 2024, with plant-based protein bars and whey protein leading the segment. Products that incorporate collagen, pea and bean proteins as well as mushroom products promising cognitive and gut health are gaining ground. Major brands like Quest Nutrition and PepsiCo’s Evolve and Purely Naked lines report double-digit growth, according to summary data from MarkNtel Advisors.

Technology also is reshaping the sector. Major snack producers such as Mondelez and Hershey’s are using artificial intelligence to research and personalize flavors and optimize product formulation. For instance, MarkNtel Advisors reports that Hershey’s innovation lab is using machine learning models to optimize snack sweetness and texture.

Food manufacturers are exploring smart packaging such as QR codes that provide nutritional feedback, and augmented reality packaging that contains interactive elements such as animations and videos. At the same time, snack makers seek AI-powered ways to gather data-driven insights to help them respond to and align with evolving consumer preferences and sustainability goals.

MarkNtel Advisors attributes these trends to shifting lifestyles, increased awareness of nutritional content, and the industry’s rapid adoption of AI-enabled tools for product development and consumer engagement.