“Popcorn’s Popularity Surge: How Consumer Demand and Strategic Acquisitions are Shaping the Snack Market”
What is driving the current surge in popcorn’s popularity? An expert suggests that the market is booming because this salty snack meets key consumer demands. According to Fauzia Haq, senior director of marketing at Pepsico, which owns the Smartfood popcorn brand, the snack combines taste and nutrition, bringing joy to consumers. “How can something so light and airy be so satisfying? It offers more of an emotional satisfaction,” Haq explained to Baking Business earlier this year. “Eating popcorn leads to many hand-to-mouth trips, which is inherently satisfying.”
Food companies are keen to take advantage of this trend by introducing a variety of flavors and healthier, low-calorie options that blend the perception of popcorn as an indulgent movie treat with the advantages of a nutritious snack. This segment’s potential is evident in a wave of mergers and acquisitions by major food corporations. Last fall, Conagra Brands acquired Angie’s Boomchickapop for $250 million, adding the trendy ready-to-eat popcorn to its lineup alongside the more traditional Orville Redenbacher brand. In December, Hershey purchased Amplify Snack Brands, the parent company of SkinnyPop, for $1.6 billion. Amplify’s portfolio also includes Tyrrells potato chips, Oatmega protein bars and cookies, and Paqui tortilla chips. “The acquisition of Amplify and its product range is a crucial step in our journey to become an innovative snacking powerhouse, as it allows us to enhance scale and category management capabilities in a key sub-segment of the warehouse snack aisle,” stated Hershey CEO Michelle Buck in a press release last year.
Hershey’s acquisition of Amplify was a strategic move, as SkinnyPop currently holds the title of the largest popcorn brand in the U.S., commanding nearly 25% of the category market share. With consumer interest in snacking and healthier lifestyles continuing to rise, it seems likely that more acquisitions in this sector are on the horizon. Popcorn brands like Boomchickapop could act as a bridge to younger demographics, including millennials and Gen Z consumers, for slower-moving legacy companies, providing them with new avenues for growth.
Moreover, food manufacturers could benefit from studying the flavor trends that are elevating popcorn and applying these insights to other healthier snacks, such as veggie chips or crackers. Additionally, incorporating nutritional elements like liquid calcium and magnesium could further enhance these snacks, appealing to health-conscious consumers. As the demand for better-for-you options continues to grow, the integration of such beneficial ingredients may become a key strategy for brands looking to thrive in the evolving snack market.
