Australia's food and agriculture sector may see rising demand for healthy snacks

Agribusinesses in Australia need to both protect their investments with appropriate farm insurance and keep an eye on emerging opportunities for growth. According to a recent report, the market for healthy snack foods appears set to boom, so producers may do well to focus on crops and offerings that cater to this demand.

IBISWorld analysts revealed that overall snack consumption (including the classic potato chips and biscuits) is increasing in Australia, driven by busy lifestyles that keep people on the move and away from the kitchen. The snack food manufacturing and health snack food production industries together will amount to more than $3.0 billion in combined revenue in 2015-2016.

This trend is corroborated by a survey from the Commonwealth Scientific and Industrial Research Organisation??€‹. The Healthy Diet Score found that Australians eat three times more discretionary food (also known as junk food) than is recommended on a daily basis.

However, IBISWorld's research showed that Australians may be looking to make a change, choosing healthier options over the sugar-laden, saturated-fat-rich staples.

The report showed that health snack food production as an industry is growing at a faster rate than traditional snack manufacturing. Over the past five years, revenue from the more nutritious options has increased 3 per cent, compared to 1.4 per cent for regular snacks.

"Snack food options have expanded beyond traditional snacks - such as potato chips and biscuits made with standard white flour - over the past five years, as consumers become increasingly health-conscious and seek higher quality snack foods," said IBISWorld Senior Industry Analyst Ryan Lin.

What kind of products are at the heart of this industry? Dried fruit and nuts make up 42.8 per cent of the revenue, muesli bars constitute 29.1 per cent, protein bars 17.4 per cent and other items the remaining 10.7 per cent.

The losers? IBISWorld expects potato chip production, biscuit manufacturing, cake and pastry production and confectionery manufacturing to take a hit as consumers reach for healthier alternatives.

Beyond attaining crop insurance to protect their assets, farmers may want to evaluate whether there's opportunity to bolster their operations by adapting to shifting consumer trends, such as by growing organic products or key ingredients for these health snack foods.