Big Food Loses Ground As Shoppers Favor Trendy Upstarts Over Legacy Labels

Benzinga

Big Food companies are losing market share as consumers shift toward niche, influencer-backed brands like Chomps. Bain & Co. reports small upstarts drove 39% of industry growth in 2024 despite representing under 2% of the market. Legacy players such as General Mills and PepsiCo face shrinking volumes and must adapt through innovation and acquisitions.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Big food is losing ground as American consumers spend less on legacy brands and more on culturally

00:07relevant upstarts. While inflation pushed up shoppers toward cheaper store labels,

00:11affluent buyers are turning to niche influencer-driven products like Chomps,

00:15which scaled from $70 million in 2021 to $660 million in sales.

00:20Made in company data shows insurgent brands made up less than 2% of the market,

00:24but drove nearly 39% of category growth in 2024.

00:27Giants like General Mills, Kraft Heinz, and PepsiCo face shrinking volumes and falling share prices

00:33despite broader food industry gains.

00:36Analysts say big food must reinvest in innovation, acquisition, and marketing to stay relevant

00:40as small arrivals leverage online retail and social media to move faster and connect better

00:45with younger audiences.

00:47For all things money, visit Benzinga.com.

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