As the health-focused consumer trend gains momentum, the traditional potato chip-dominated snack market in the US is undergoing a significant transformation. According to a Bloomberg report on March 17, American supermarkets are increasingly stocking snacks made from unconventional ingredients such as cassava, tempeh, mushrooms, chicken breast, and even whole eggs. These “alternative chips” aim to preserve the convenience of traditional snacks while catering to consumer demand for products closer to “real food.” Market research firm Circana reports that while the US potato chip market remains sizable at $12 billion annually, growth has slowed. In the 12 months ending February 2025, potato chip sales declined 1.2% year-over-year, and tortilla chip sales stagnated. In contrast, health-oriented snacks are thriving, with nutrition bars and trail mixes seeing a 2.1% sales increase, pork rinds up 1%, and apple chips rising 4.1%. This shift aligns with US health authorities’ recommendations to reduce consumption of highly processed foods.
The changing landscape is also impacting corporate performance. Campbell, which owns Snyder’s Pretzels and Cape Cod potato chips, recently reported a 6% decline in quarterly savory snack sales, primarily due to sluggish chip and pretzel sales. Meanwhile, startups are rapidly gaining ground. According to BNP Paribas, small and medium-sized food companies accounted for just 2% of total sales in 2025 but drove 64% of sales growth, while large food companies have recorded five consecutive years of declining sales volumes. Product innovation continues to evolve, featuring chips made from broccoli florets, fried oyster mushrooms, and blends of cassava, spinach, and purple sweet potato. The high-protein trend is also expanding the market, with products based on tempeh, chicken breast, egg whites, and even whole eggs, with some brands prominently marketing low-carb, high-protein formulations to strengthen their health-food image.
