Snaxshot Turns One 🎂
A handy recap of our predictions 🔮 you're welcome
A newsletter on upcoming food and beverage trends that offers a curation of brands and aesthetics written by Andrea Hernández.
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“Left my heart out somewhere running
Wanting strangers to be mine”
—Drunk in LA, Beach House
Greetings from your favorite, non-controversial cult leader. I’m writing this letter as we set the first corner stones of our church, soon you will be able to take our sacraments of adaptogenic waters and THC crackers from wherever you may find yourself. The cult of snax is 15K worldwide, this religious experience that involves indulgence in highly curated food and beverage items. is now officially a year old. If you’ve been here long enough you can attest to the fulfillment of prophecies our dear prophet doth foretold.
Here is a recap of our predictions come true, so the eye foresee, so was it done.
From the book of Snaxers, Book One, “Rise of Sober Curious”
What’s in a drink, that made in any other way would buzz just as good?
The idea of “happy hours” in 2020 sounds like an oxymoron, in fact, alcohol is a central nervous system depressant, but BigAlcohol™ has made sure we forget about this and much more. As millennials, we are known as the “me” generation, so selfish to the point we started applying a self-awareness mindset towards everything we consume, lest you forget we’re also the “burnout generation” —cue in the commodification of wellness, it’s just self-care, amirite?
As of 2019, U.S. beer volumes were down 2.3% — the fourth straight year of declines and for the first time in 25 years, wine sales declined.
Booming demand for functional beverages is propelling the non-alcoholic beverage market, registering a CAGR of 4.7% (2019 - 2024).
Alcohol/low abv category volume to grow by over 35% by 2023.
Alcohol-free beer isforecasted to grow 47% globally.
From the book of Snaxers, Book Two, “High Expectations”
Leave it to the burnout generation to popularize SaaS or self-care as a service that in turn has driven the growing interest in CBD. The passage of the U.S. Farm Bill in late 2018 legalized the commercialization of hemp-derived products and contributed to the acceleration of the CBD market. From capsules, to drink mixes, condiments, candy, tinctures, to things like CBD wine, there’s a full spectrum of products available for those of us looking for calmer times.
TL: DR — When it comes to CPG companies, the future looks dope.
From the book of Snaxers, Book Three, “Magic Mushrooms”
From being worshipped as totems of immortality, to being known as “holy children” our obsession with mushrooms is as old as civilization itself. Interest around functional mushrooms has sprouted over eons and in the spirit of the “commodification of wellness” the global mushroom market is projected to reach $69.3 billion by the end of 2024 as more consumers re-discover the idea of functional foods and food as medicine.
The US mushroom market produced $5 billion in revenue in 2018, this number is expected to hit $7.4 billion by end of 2020.
According to Market Research Future the mushroom extract market will experience a 8% CAGR until 2024.
From jerky to drink mixes, the ingredient is being incorporated into more products by CPG companies wanting to tap into its numerous health benefits and meat-like qualities.
From the book of Snaxers, Book Five, “Scoop, There It Is”
Screaming (Internally)For Ice Cream 🍦
Nothing evokes a palette nostalgia like a spoonful of ice cream and we’ve gone from Blue Bell to the faux-ropean brands like Häagen-Dazs, to letting ourselves be tempted by the comfort of Ben & Jerry’s to now indulging in ultra-premium brands for the sake of authenticity, transparency and mindfulness.
Brand’s like Halo Top reminded us that we can have our ice cream and eat it too — Jeni’s told us $10 pints are worth it, emerging brands like Wonderlab’s Doozy Labs and Coolhaus are convincing us functional, plant-based ice cream is the way to go.
Both legacy brands and newcomers are eager to capitalize on our cabin fever as we’re forced to cope with a pandemic, a looming recession and what not—while trying to remind us that so long as we have ice cream, things can’t really be that bad?
Lick-rative business 🤑
—The US ice cream market is projected to grow with a CAGR of 2.83% during the forecast period, 2020-2025.
—Frozen desserts have exceeded $100 billion in sales globally this year, a category dominated by ice cream.
—Innovative flavors and formats as well as growing demand for plant-based desserts are key factors driving increase in demand.
—New products and brands are tapping into the “better-for-you” claims trend using label like “good source of protein,” “vegan” and “low glycemic”—these claims are now driving the highest dollar sales in ice cream category.
—Halo Top has become one of the biggest ice cream brands, with a 3.7% market share.
No Dairy, No Problem? 🐄
—Between 2016-2018, retail sales of nondairy ice cream increased by nearly 50%.
—In 2019, the sales of non-dairy ice cream amounted to approximately $336 million.
—Cashew and coconut milk are most common replacements in ice cream brands, though coconut milk based ice cream dominates with market share of 37.4%
“You and me always forever
We could stay alone together
Hard to say things could be better
Darling don't get away right now”
—Always Forever, Cults
From the book of Snaxers, Book Seven, “Convenient Cocktails”
Resurgence of RTD 🍷
—Market size of US RTD spirit product in 2020 is of $4.9 billion.
—In 2020, alcohol sales online experienced triple digit growth! These numbers are the fastest-growing sector Nielsen measures in the alcohol space.
—For alcohol delivery startup Drizly, new customers have doubled in 2020 and currently make up 33% of the company's total sales! The RTD segment has grown 416% in share of sales year-over-year.
—In the US alone, the RTD sector is expected to report volume growth of 21.8% CAGR from 2019-2024, stealing market share mainly from beer.(Beer sales have experienced steady decline for the past 5 years.)
—Data from IWSR shows that RTD sales volume increased 43.2 % in 2019, nearly tripling 2018’s 16.9 % growth.
—Over the past 5 years, volume consumption of tequila in the US grew by more than 40%. In 2020, tequila saw biggest spike, up more than 75%, now fastest growing spirits segment in the U.S
—From summer 2019 to summer 2020, hard seltzer category saw $2.7 billion in sales as consumers decreased spending on beer and wine.
—According to Nielsen at the beginning of 2018, just 10 hard seltzer brands were on the market, rising to 26 a year later and now more than 65 brands exist, half using a unique brand name, and the other half pivoting off an existing beer brand name.
—Global sales of canned cocktails are predicted to surpass $146 billion over the next 10 years .
—According to Euromonitor, sales of RTD cocktails in the U.K., are about 2.6 times greater than in the U.S.
From the book of Snaxers, Book Eight, “Follow Your Gut”
Is this just a fad similar to the activated charcoal promises of yore (lol) or is there something bigger behind the boom in gut health drinks from kombucha, to sparkling ACV to pro/prebiotic drinks and kefir water? Perhaps these brands, with their slick cans and cute designs, do hold the key to solving one of life’s greatest malfeasances: Why does everything that is good for us, taste so bad?
For millennials, the generation of instant gratification, it seems like these beverages get us closer to our unattainable quest of “having it all” in RTD format.
Billion Dollar Bacterias 💸
—From 2014 to 2019 the amount of Google searches for “microbiome” increased by 270%!
—In the US, the kombucha market is expected to grow at a CAGR of 15% and be valued at $17 billion by 2027, with online retail being the fastest growing segment. The US market dominates globally with a revenue share of over 52% as of 2019.
—In Europe alone, kombucha market is estimated to grow at a CAGR of 19%!
—The global probiotic drinks market is expected to grow 9% between 2020-2024 and will be valued at $45 billion!
—The US probiotic drinks market to grow to $15 billion from 2020-2024 growing at a CAGR of 6%, prebiotic market is expected to achieve around 10% CAGR during the same period.
—The global ACV market is forecasted to reach $2 billion by 2027, compared to $700 million back in 2018, with an estimated CAGR of 6%.
From the book of Snaxers, Book Nine, “Brave New Alt-World”
If 2019 proved to be a prosperous year for alt-foods, think Beyond’s IPO and BigFood™ debuting their own alt-lines, the pandemic of 2020 only served to solidify the foundations of ourBRAVE NEW ALT-WORLD.
In The Beginning There Was Demand 🌅
—In 2018, global plant-based milk sales reached an estimated $16 billion and projected to reach $38 billion by 2024.
—Global plant-based meat sales hit an estimated $4.6 billion in 2018.
—In the US alone, retail sales of plant-based meat is estimated $1 billion in 2020.
—The seven countries that are leading in plant-based food innovation: the United States, United Kingdom, Canada, Germany, Netherlands, Brazil, and Israel.
—Between 2017 and 2019, retail sales of plant-based meat grew 31%, while total U.S. retail meat sales grew just 5%.
—As of 2018, 6% of Americans say they followed a strictly vegetarian lifestyle, while 3% followed a strictly vegan lifestyle according to Nielsen.
—Alt-dairy market grew by 60% in five years and as of 2019 held a 12.6% market share from dairy products.
—According to Nielsen, plant-based food has posted double digit growth since 2018. During the early days of the pandemic, sales of plant-based meat surged 264%.
—2020 has seen $1.5 billion invested in alt-food, $435 gone towards microbial fermentation as it seeks to become third pillar of alt-protein industry.
—Impossible CEO forecasts by 2035, tech will replace the use of animals in food industry.
—PepsiCo launched its GreenHouse Accelerator program partnering with upcoming plant-based players.
—JBS, the world’s largest meat company, launched their plant-based burger earlier this year, OZO.
—Chobani released an oat-based lineup of yogurts, creamers, and milks that hit shelves during 2020.
From the book of Snaxers, Book Fourteen, “Hype-biscus”
— According to this report, over the past 5 years, hibiscus has been showing growth around the globe with a 78% increase in new products since 2014.
—21% of US consumers would like to see items with floral flavors on a menu when dining out.
—Since 2014 there’s been 1,215 Hibiscus flavored new product introductions, with North America accounting for 12% of all hibiscus flavored new product introductions
—Global hibiscus powder market is expected to reach $197M in the next 5 years, growing at a CAGR of 7%, food & beverage segment holds largest share in the market
—According to Innova Market Insights, there has been a 50% average annual growth of new product launches tracked with hibiscus flavor in the last 5 years
—Desire for reduced sugar/low sugar products have also helped capitulate hibiscus into mainstream
From the book of Snaxers, Book Eighteen, “Functional Unwinding”
—As of 2019, U.S. beer volumes were down 2.3% — fourth straight year of declines and for the first time in 25 years, wine sales declined as American drinkers are more focused on health and wellness
—Booming demand for functional beverages is propelling the non-alcoholic beverage market, registering a CAGR of 4.7% (2019 - 2024)
—Alcohol/low abv category volume to grow by over 35% by 2023
—Alcohol-free beer is forecasted to grow 47% globally
—CBD infused beverages will be a $2.8 billion market by 2025 as consumers seek to foods with therapeutical properties
—Year-on-year sales of products containing medicinal mushrooms have risen 200-800% depending on the type of mushroom
—Sales of mood support products were up by about 9.6% year-on-year for the first seven months of 2020
—According to SPINS adaptogen sales were up double digits in 2020
—Overall adaptogens market is expected to be $23.4 billion by 2030
From the book of Snaxers, Book Twenty, “Water, Water, Everywhere”
—By 2016, Americans were drinking more water than soda, for the first time, in decades.
—Retail sales of seltzer in the United States more than doubled from 2013 to 2018, Mintel estimated.
—Global sparkling water market valued at $30 Billion in 2020; expected CAGR of 13% from 2021 to 2028.
—The sparkling water industry is one of the fastest-growing non-alcoholic beverage categories, with a sales increase of 11% between 2013 and 2018.
—In 2018, Pepsi followed through releasing Bubly, saw sales surge 96%, in span of a a year.
—Nestle offloaded its North American water division, soon bought Essentia, a premium functional water brand.
—Global functional water market expected to grow to $18 Billion by 2025, CAGR of 7% during the forecast period.
—In the US, retail sales of functional beverages is around $18 Billion, and functional water is 17% of that share.
Indoctrination is Nigh 👁️
So where do we go from here? We’ve indoctrinated San Francisco, held a snack seance in New York City as well as a snack crawl, and we plan to do much more—expect physical and virtual iterations of Snaxshot dropping SOON, and if you are interested in what’s next, you can always directly email me. For now, I will just bid goodbye before we go stealth-y — but not before giving the outmost thanks to this community, the letter S and readers like you, SEE YOU NEXT WEEK.
None of this would be possibly without your support. Thank you for being you and remember to continue to uphold our doctrines:
Excess is Death
Curation is Salvation
Discovery is Strength
SO DOES THE EYE COMMAND.
Spoonful of News 🥄
Check out our latest podcast with the wonderful folks at Center Design.
Snax Concierge 🛎️
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