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Australia's snacking sector achieves near-universal appeal

As many as 99% of Australian consumers snack daily, with generational differences and increasing demands presenting novel manufacturing opportunities, according to Mintel data.

In 2025, revenue in the Australian food market amounted to US$94.22 billion (AUS$143.7 bn), with the sector expected to grow by 4.85% annually over the next five years. Australia feeds up to an estimated 75 million people across domestic and international markets.

As consumer spending rises, food manufacturers will be eyeing up needs and preferences to develop new production possibilities for consumers. One area likely to receive increasing attention is snacking, a captive market for Australian food producers.

Describing the Australian population as “a nation of nibblers”, market intelligence provider Mintel has found that 99% of the country’s consumers snack.

Rather than an anomaly for 2025, data from Mintel shows that the signs of an almost universal snacking nation have been there for several years. According to Mintel’s Global New Product Database, in each of the past five years, 10% of all new food product launches in Australia were within the snacks category.

However, as this excludes products often considered snacks but that do not sit on typical shelves or aisles – this figure may be higher.

Choosing healthfulness and indulgence

While the better-for-you, healthy alternatives market is growing in Australia, consumers also want indulgence as part of their daily dietary preferences. Consumers’ favourite snacks span both healthfulness and indulgent categories, with popular choices including fruit, vegetables, chocolate, and chips.

Snacks with health messaging resonate with consumers, with almost half (48%) agreeing that i worth spending more on snacks with healthier ingredients. In Australia, consumers connect healthfulness with foodstuffs rich in protein, low in sugar, and made with natural ingredients.

“Snacking is an opportunity to top up healthy food intake, but we commonly choose discretionary foods at these times, so it’s a missed opportunity to improve the quality of our diets,” a spokesperson for Australia's national science agency, Commonwealth Scientific and Industry Research Organisation (CSIRO), told Ingredients Network.

Shoppers trust nutritional claims backed by scientific evidence. Yet, these can be hard to substantiate, and the supermarket aisles can be confusing. Mintel’s data shows that more than a third (37%) of Australians find it challenging to make healthy food choices.

To close the gap between shoppers’ willingness to spend more on healthier snacks and their struggle to identify what these are, Mintel’s data shows that brands need to simplify their health messaging. Clear, compelling benefits that centre on promoting gut health or boosting fibre intake can offer captive communication that makes choosing and purchasing healthier snacks easier.

Consumers want indulgence, too. “Treat-yourself” moments remain valuable, with more than a third (35%) of Australian consumers eating indulgent food daily.

New product developments (NPDs) are an expansive area for snack producers to enhance the sensory experience attached to snacks' flavours, taste, and textures.

Making the most of almost-universal uptake: Calm versus convenience

While snacking is a popular daily activity among nearly all of Australia’s consumers, the type of snacking foods consumers opt for is not the same.

Generational differences are present, for example. For the boomer demographic, those born between 1946 and 1964, snacking is a ritual – a deliberate pause in consumers’ days. Typically, consuming snacks once a day, the generation views snacking as a moment of calm instead of convenience.

While boomers’ snacking frequency is low, skipping production and marketing possibilities is a missed opportunity, Mintel said, as overall they have higher disposable incomes. Manufacturers can appeal to their snacking habits and encourage spending by elevating high-quality snacks to add a touch of premiumisation and specialness to everyday moments.

For gen Z consumers (born between 1997 and 2012) and millennials (born between 1981 and 1996) demographics, snacking often becomes a meal replacement.

According to Mintel, over half of Australian millennials and gen Z consumers opt for snacks as a source of energy, choosing to skip traditional meals. Centring marketing messages around energy-filled snacks that align with the busy lifestyles of younger Australians is, therefore, a strong opportunity.