Snacking trends increasingly combine bold flavors, functional nutrition and indulgence, according to Conagra Brands’ second annual Future of Snacking report. The report looks at consumer behavior across the U.S. snack market, which generates $198.2 billion in annual retail sales.

Conagra identified three main themes: snacks offering targeted nutritional benefits, treats that align with consumers’ ingredient preferences, and adventurous flavors.

Products offering functional benefits, including protein, energy, digestion and hydration, generated $19 billion in retail sales, up 12.7% from the prior year. High protein snacks accounted for $12.1 billion.

Conagra noted that consumers increasingly seek products combining protein with fiber, probiotics, collagen or other benefits rather than focusing on protein alone. Yet, according to Conagra, consumers’ interest in nutrition has not displaced indulgence. Instead, shoppers increasingly seek treats that also meet personal expectations for ingredients and nutritional content.

Snacks made with recognizable ingredients, simpler formulations and fewer artificial additives accounted for about $69.4 billion in annual sales. Conagra also identified demand for products positioned around lower sugar, fewer calories and digestive health.

Flavor innovation also remains a purchasing driver. Elevated comfort flavors, including chocolate peanut butter, cinnamon bun and cookie butter, collectively grew 6.4% in sales over the past year.

Sweet and spicy combinations represent another area of demand. Chili lime snacks generated approximately $1 billion in annual sales, while sweet chili approached $400 million. Fruit combinations such as pineapple mango, cherry vanilla and raspberry cheesecake illustrate how manufacturers are adding variety to familiar snack formats.

The complete report is available from Conagra Brands.