Consumers are looking for protein-enriched snacks, and the increasing demand is driving changes in the alternative snacks category. Marketers of the products—ranging from meat snacks to nutrition and energy bars to granola and fruit snacks—are responding in kind, and convenience retailers say they expect the category to continue to benefit from changes customers are making in their snacking habits.
“I’m seeing more movement with products like beef jerky and protein bars lately,” said Andrew Mendez, co-owner of Mendez Fuel, which has three locations in Miami. “People are trying to eat healthier, cleaner and are looking for more protein.”
Farris Jamal, merchandising manager at Chestnut Market, with around 70 stores in New York, New Jersey and Connecticut, added that “many alternative snack buyers are active, whether it’s through regular exercise, outdoor activities or other health-focused routines. This makes sense, as many of these snacks serve a functional purpose—offering quick, portable protein, energy and nutritional benefits on the go.”
Alternative snack vendors have seen the growing opportunity for protein- and energy-enhanced snacks and are working to make a wide variety available to c-store customers.
“Consumers today want snacks that don’t just fill them up. They want snacks that fuel them,” said Thomas Pryor, vice president, c-store, at Jack Link’s. “We’re redefining snacking by delivering convenience, protein and bold flavor—all in one bite.” Jack Link’s recently expanded its line of protein snacks with the introduction of Turkey Sticks and the Duos line, which pairs contrasting flavors, like buffalo and ranch nuggets, in one pack.
Powered by Protein
Alternative snacks are a top 10 in-store category for c-stores, accounting for 1.9% of sales, according to the NACS State of the Industry Report® of 2023 Data. Average sales per store, per month increased by 4.7% in 2023 to $4,185, up from $3,997 in 2022. For the first few months of 2024, category sales were trending above that of the same period in the year prior, but by mid-year, the trend had leveled out as sales of meat snacks slowed.
“The big news for 2024 has been the growth in the health/energy/protein bars subcategory and a decrease in meat snacks share,” said Emma Tainter, research analyst at NACS. “People are trying to increase their protein intake and reduce carb consumption.”
While losing ground lately, meat snacks still account for the lion’s share of alternative snack sales at 41.3% in 2023, compared to 50.4% in 2023. Average per store, per month sales equated to $1,730 in 2023, according to the SOI Report, and $778 in average gross profit. Health/energy/protein bars, meanwhile, gained share, reaching 27.2% of category sales, with average sales of $1,134 per store, per month. The subcategory provided the best gross margin within alternative snacks at 50.9% in 2023. Granola/fruit snacks and other alternative snacks also posted sales and share gains during the year.
At Chestnut Market, alternative snacks have become a key driver in store growth, Jamal said. “We’ve seen a growing demand for meat snacks, fruit and granola bars, and protein-packed alternatives,” he said. “In fact, we’ve been actively expanding our selection of alternative snacks to meet this demand.”
In addition to helping generate foot traffic at his stores, alternative snacks are increasing basket size as customers are incorporating the products into their everyday routines. They’re also often purchasing complementary products, including cold-pressed juices and plant-based drinks. “By focusing on this high-growth category, we’re not just responding to current trends, we’re positioning ourselves to be the go-to destination for consumers seeking healthier, on-the-go snack solutions,” Jamal explained.
Category Workhorse
Meat snacks remain the category leader. “Meat snacks aren’t just a trendy add-on, they’re a profit-driving engine,” Pryor said. “With meat snacks as the reigning superstar, the alternative snacks category is one that no c-store operator can afford to ignore.”
Within the subcategory, meat sticks and emerging bites are gaining traction. According to Ashley Spade, vice president and general manager at Conagra Brands—marketer of Slim Jim, Duke’s and Fatty brands—more affordable meat sticks are outperforming traditional jerky at retail. As a result, meat sticks warrant more shelf space in c-stores, particularly at the front end of the store, Spade said.
Consumers today want snacks that don’t just fill them up. They want snacks that fuel them.”
Mark Falconi, senior vice president, sales and marketing, Greenridge Naturals, agreed. “Sticks are more cost effective and are driving category growth. They provide a better value for suppliers, c-stores and consumers,” he said, noting that single stick pricing generally ranges between $1.99 and $2.49.
Bite-size meat snacks are also on the rise. Conagra Brands recently introduced Slim Jim Bites, packaged in portable, resealable packaging that’s “ideal for snacking and grazing on the go,” Spade said. “At $6.49 for a 3.75-oz resealable bag, they provide great value compared to jerky shelved in similar locations,” she said.
But meat snacks aren’t necessarily relegated to ambient store conditions. Greenridge, for example, markets refrigerated meat snacks that are designed for open-air refrigerators. Those types of products are performing well at Pit Stop Express in Dorton, Kentucky, according to Kerrigan Branham, assistant manager. “We recently upgraded our cold deli with more refrigerated units,” she explained, allowing space for the meat snacks. “Customers have responded well,” Branham noted, while sales of ambient meat snacks at the store have languished.
Shopper Mainstay
For most of the first half of 2024, average sales of health/energy/protein bars per store, per month outperformed that of the same period a year earlier. “Bars continue to be a mainstay for shoppers,” said Dan Meyer, shopper insights manager at General Mills. “Depending on the need, we continue to see shoppers splitting between occasions for breakfast or high-protein bars.”
General Mills recently introduced Protein One Max Bars exclusively in c-stores in two flavors—chocolate peanut butter and double chocolate brownie—each featuring 20 grams of protein. “Launched as a low-calorie, high-protein snack, Protein One Max Bars taste great at an approachable price point and aim to democratize the ‘toos’ of protein solution—too expensive, too chalky, too hard or chewy,” Meyer said. The 2.1-ounce bars have a suggested retail price of $3.49.
“When a new protein bar comes out, it gets a lot of buzz and customers come in specifically for that brand because they want to try it,” said Mendez. He pointed to the recent addition of David protein bars at his Miami stores for $4.29 to $4.49 per bar. “They’re doing well. We can sell through a case pretty quickly.”
But at Pit Stop Express, protein bars don’t perform as well. “Sales are few and far between,” Branham said. “We offer them but they’re not big sellers. We don’t have too many health-conscious customers.”
People want cleaner products. They’re more aware of ingredients and are focusing more on themselves and what they consume.”
Fruit snacks are also riding the nutrition wave in c-stores. Lance Smith, executive vice president, sales and industry affairs at PIM Brands, noted that Welch’s Fruit ‘n Yogurt snacks have “expertly leveraged consumer trends, driving an impressive year-to-date dollar growth of 48% through October 27, 2024. Their alignment with consumer demand for nutritious and convenient snacks has propelled their strong market performance.”
Among the new offerings from Welch’s Fruit Snacks are Juicefuls Fusions—with one fruit flavor on the outside and a juicy burst of another on the inside—and a new mango-peach flavor of the original Fruit Snacks product. In 2024, the brand partnered with chef Gordon Ramsay, appointing him Fruit Snacks’ chief fruit officer (CFO).
Visibility Is Key
Marketers of alternative snacks encourage c-store operators to creatively merchandise the products to drive sales and recommend multiple placements throughout the store. “Top-performing c-stores know that when it comes to meat snacks, visibility is key,” said Jack Links’ Pryor. “Meat snacks should be featured in multiple locations—checkout counters, beverage coolers and in high-traffic snack aisles. The impulsive nature of meat snack purchases means that well-placed displays can significantly increase sales.”
In addition to placing alternative snacks in high-traffic areas, Chestnut Markets stocks the products in dedicated wellness or better-for-you sections, Jamal reported. Similarly, Mendez Fuel features a protein section with multiserve bags of jerky hung from pegs.
While consumers of health/energy/protein bars often purchase the items in bulk at big-box stores, General Mills’ Meyer noted that the single bars merchandised in c-stores help stimulate trial. In a recent shop-along, the company found that shoppers like the variety they can purchase in c-stores “without buying 5, 10 or 20-plus of one flavor,” he said. “They can mix and match a variety of flavors and still come out ahead.”
Sampling, where possible, is another good way to drive trial of alternative snacks, Falconi of Greenridge Naturals said. He also sees opportunity in promoting products like meat sticks as part of loyalty programs, with offers like a free meat stick on a particular day of the week for qualified customers.
Consumer demand for protein-enriched snacks isn’t likely to slow down anytime soon, and convenience retailers are prepared to leverage the trend. “People want cleaner products,” Mendez said. “They’re more aware of ingredients and are focusing more on themselves and what they consume.”