Snack Food Market
The major trend in the snack food market in the last five years has been the introduction of new products with a focus on functional ingredients. Given the major breakthroughs in terms of product innovations and assortment, the global market for snack food is expected to reach USD 639 billion by 2023, growing at a CAGR of 5.8%.
Mondelez has a new product in its portfolio, savory biscuit brand Vea. The brand includes crunch bars, crisps and seed crackers, with no artificial ingredients, trans-fats, colors or flavors. They have various flavors like Thai coconut, Tuscan herbs, Peruvian Sweet potato, etc.
General Mills Inc. has planned for investment in snack bars sector. The company’s brands include Chex Mix, Nature Valley and Cascadian Farm granola bars and Bugles corn snacks. Lately, Annie's has extended the snack products lineup, which includes gluten-free options.
Kellogg’s is producing teff-based snacks based on Ethiopian recipes. The launch of a new flavor revolutionizes the company’s snacks business and leads to be a global snacks powerhouse.
Snack food has emerged as an alternative to full-fledged meals with the paradigm shift in consumer behavior patterns. The higher disposable incomes as a result of the growing urbanization and increasing preference for convenience food have triggered the growth of the snack food industry. The rising health consciousness among consumers and government regulations regarding procurement of raw materials like vegetables, meat, etc. are restraining the growth of snack food consumption to some extent. Innovative product offerings with regards to functional ingredients and organic foods may provide a future growth opportunity in the sector.
The global snack food market is segmented by type into salted snacks, bakery snacks, confectionery, specialty & frozen snacks. The bakery snacks segment possesses the highest market coverage, while the salted snacks including potato chips, corn chips, tortilla chips, popcorn, pretzels, etc. are expected to have the highest market growth during the forecast period. The snack food industry also includes confectionery items like chocolates, candies and cookies, crackers, etc. The global snack food report discusses the market revenue in terms of distribution channels such as specialty stores, independent stores, online sales, convenience stores, supermarkets and hypermarket, etc.
Europe represents the largest market for snack food products, followed by North America. The preference for healthy and nutritious snack food is expected to help maintain a steady growth in the developed markets. Asia-Pacific is poised to register the fastest growth during the forecast period, owing to the increasing demand from the developing countries of India and China. The spread of western eating habits to the developing world and growing urbanization have helped in better market penetration for the global players in the developing nations of Asia-Pacific and South America. Among countries, the United States continues to be the largest market, accounting for one-thirds of the total. Japan and the United Kingdom together account for one-fourth of the global snack food market share.
The competition in the global snack food market is reported to be huge mostly in the developed world where a large number of snack food manufacturing companies are operating to serve the limited population. The growth opportunity in the growing region of Asia-Pacific is catered by a majority of the big house players. The booming retail sector, increasing penetration of international brands and distinctive distribution channels adopted by players are expected to help the market grow at a continuous pace. Product launches and mergers & acquisitions with smaller level players have been the proven strategies for market growth. Kellogg’s entered the global snack food market with the purchase of Pringles.
Some of the major global players operating in the industry are:
Kellogg’s has decided to end the direct store delivery of its snacks in US. This decision has placed different companies in a different position. As a result, Cheez expects a better position, while, the Pringles would probably face challenges.
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