Chomps, a fast-rising U.S. meat snack startup, has surged from $70 million in 2021 sales to roughly $660 million in 2024. The company’s sugar-free, high-protein snacks target health-conscious consumers and have quickly overtaken legacy players in the $7.7 billion meat-snack category. While Big Food companies continue to cite inflation and shifting consumer budgets, Chomps has expanded through direct consumer targeting and faster product cycles that match cultural and dietary trends.
Market impact
The growth of Chomps shows a clear change in packaged food consumption. Insurgent brands, which make up less than 2% of total food, beverage, and household products, captured 39% of incremental growth in 2024. That is more than double their share from the previous year. Large producers like Kraft Heinz and General Mills continue to face falling volumes even as the category grows. The divide is widening between private labels winning on price and startups like Chomps winning on brand appeal. Large-cap producers like Kraft Heinz and General Mills face volume declines despite overall category growth. The divide has widened between private labels capturing budget shoppers and startups like Chomps winning over premium buyers.
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Distribution advantage
Online retail and social media have eroded traditional barriers for emerging food startups. Platforms such as Amazon provide national distribution without the cost of retail shelf space, while influencers deliver exposure at a fraction of television ad budgets. Bain’s Charlotte Apps notes that marketing decisions that take major brands weeks can take startups minutes, allowing smaller players to react to consumer trends almost instantly.
Startup competition
Chomps is part of a wave of fast-scaling brands across snacks, frozen foods, chocolate, and yogurt. These startups often sell fewer product lines, which sharpens brand identity and improves agility. Legacy brands, burdened by broader portfolios, struggle to match their pace. Companies such as Conagra and Campbell’s have begun responding through selective acquisitions, aiming to capture growth rather than relying solely on price cuts or advertising.
Big Food investment shifts
Analysts suggest reinvestment in brand innovation is more effective than consolidation or cost-cutting. Bain identifies Oreo and Dr Pepper as rare examples of legacy products that stayed culturally relevant through new flavors and inclusive marketing. Recent acquisitions, including Hershey’s purchase of LesserEvil and PepsiCo’s buyout of Poppi, show a renewed focus on health-conscious consumers and premium product categories.
Strategic significance
Chomps startup growth shows how brand speed, cultural awareness, and digital-first distribution are displacing traditional scale advantages. For startup founders, it marks a signal that consumer trust and identity alignment can outperform market incumbency. For investors, this shift validates early bets on niche players with strong founder-led storytelling. The next wave of food growth will likely come from startups built around community and speed, not shelf space.
Reference
Wainer, D. (2025, October 5). Startups are eating Big Food’s lunch. The Wall Street Journal. https://www.wsj.com/finance/stocks/startups-are-eating-big-foods-lunch-1906cf8e
