|Study Period:||2016 -2027|
|Fastest Growing Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The snack food market is projected to register a CAGR of 3.37% during the forecast period 2022-2027.
During the first few months of the COVID-19 pandemic, the snack food market witnessed reduced demand primarily because of barriers to the movement of goods and the closure of retail outlets. However, as consumers were forced to stay indoors, snacking became a common habit, mostly among the adult and younger populations. This further led to the "buying in bulk" of snack foods, enabling consumers to trim down on sudden hunger. Manufacturers, witnessing the sudden upsurge, eventually launched products enriched with protein, vitamins, and nutrients, giving consumers on-the-go nutrition while snacking.
Over the medium term, snack food may emerge as an alternative to full-fledged meals with a paradigm shift in consumer behavior patterns. Snacks are evolving to cater to changing demand as empowered consumers increasingly seek tasty, nutritional, and sustainable foods to fuel their on-the-go lifestyles. Snacking is on the rise as the demand for convenience and portability fuels consumption, with premiumization spurring innovation and variety in fresh, better-for-you, and functional snacks. Localization is encouraging the use of bold and spicy flavors and exotic ingredients to appeal to global palates, which is driving growth in the regional markets. Convenience is also driving the online sales of ready-to-eat snacks, with snack foods being one of the top food categories purchased through e-commerce channels.
The pandemic created opportunities for many snack food private players to emerge in the markets and cater to the inflated demand. The demand for innovative snack products is consistently high in developed countries because snacks are a quick and convenient source of nutrition and energy. Globally, the number of independent working women, double-income families, and nuclear families is increasing. This demographic change increases the demand for convenience food by many folds. Snack food is considered the closest alternative to regular food, which can be consumed at any time.
Scope of the Report
A snack is a small portion of food eaten between meals. Snacks come in a variety of forms and shapes, including packaged snack foods and other processed foods. The snack food market is segmented by type into frozen snacks, savory snacks, fruit snacks, confectionery snacks, bakery snacks, and other types. By distribution channel, the market is segmented into supermarkets and hypermarkets, convenience stores, specialty stores, online retail stores, and other distribution channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, market sizing and forecasts have been done on the basis of value (USD million).
|Online Retail Stores|
|Other Distrbution Channels|
Key Market Trends
The Demand for Convenient and Healthy On-the-go Snacks is Increasing Consumption
Globally, the demand for convenience foods is growing faster due to changes in social and economic patterns, as well as increased expenditure on food and beverage, awareness about healthy foods, changes in meal patterns and existing food habits, and the desire to taste new products. The United States is the largest market for convenience foods in the world, and the emerging markets of Asia-Pacific, the Middle East, and Latin America are projected to see future growth. On-the-go snacking is becoming extremely popular, especially among the working population, teenage children, people living in hostels, and bachelors, due to their hectic lifestyles. Moreover, the on-the-go snacking concept is closely associated with easy consumption and handling of products, frozen snacks, savory snacks, confectionery snacks, bakery snacks, and other snacks. Thus, the demand for snack products is increasing due to the linked convenience of consumption, aided by disposable packaging that prevents the products from coming into contact with hands, keeping them clean to work simultaneously.
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Asia-Pacific Holds the Largest Market Share
Snack food products are largely consumed in developed regions due to high commercialization and urbanization. The market is expected to record a high CAGR in developing countries across the world. Asia-Pacific represents the largest and fastest-growing market for snack food products, followed by North America in size, owing to 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 improve market penetration for global players entering the developing nations of Asia-Pacific. The Chinese snack food market registered a stable growth in the study period, and it is expected to improve further during the forecast period. Moreover, the rising demand for on-the-go snacking with additional nutritional content is driving the demand for meat-based snacks in the market. Additionally, the higher protein content and lower fat and carb contents of products augment their demand among sports and fitness enthusiasts.
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The competition in the snack food market is high, mostly in developed countries, where a large number of snack food manufacturing companies are operating to serve the limited population. Some of the major players in the snack food market are PepsiCo Inc., Kellogg Company, Nestle SA, and General Mills Inc., among others. The prominent players are focusing on new product developments, expansions, partnerships, and mergers and acquisitions as strategies to cater to the increasing demand from consumers, thereby gaining a competitive advantage in the market. In order to strengthen their hold in the market, these companies are innovating their flavors, expanding their target markets, and strengthening their distribution channels.
In January 2021, Kellogg Co., under its Special K brand, launched a new line of Special K Keto-friendly Snack Bars. The product is available in chocolate almond fudge and peanut butter fudge flavors, and the bars contain 160 calories, 12 grams of fat, 7 grams of protein, 2 grams of net carbs, and 1 gram of sugar each.
In 2021, Mondelez International Inc. announced an agreement to acquire Chipta SA, a high-growth key player in the Central and Eastern European croissants and baked snack category.
In 2021, PepsiCo's largest greenfield potato chips plant commissioned in India invested USD 110 million to double its snack business by 2022.
In January 2020, PepsiCo, the Frito-Lay and Walkers Crisps maker, acquired a majority shareholding of Senselet Food Processing, an Ethiopian potato crisps company founded by Veris Investments in 2015. Senselet had a leading market position in Ethiopia with its Sun Chips brand, which used locally sourced potatoes.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1.1 Frozen Snacks
5.1.2 Savory Snacks
5.1.3 Fruit Snacks
5.1.4 Confectionery Snacks
5.1.5 Bakery Snacks
5.1.6 Other Types
5.2 Distribution Channel
5.2.2 Convenience Stores
5.2.3 Specialty Stores
5.2.4 Online Retail Stores
5.2.5 Other Distrbution Channels
5.3.1 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
126.96.36.199 Rest of Asia-Pacific
5.3.4 South America
188.8.131.52 Rest of South America
5.3.5 Middle-East and Africa
184.108.40.206 South Africa
220.127.116.11 Saudi Arabia
18.104.22.168 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 PepsiCo Inc.
6.4.2 Kellogg Company
6.4.3 Nestle SA
6.4.4 General Mills Inc.
6.4.5 Mondelez International
6.4.6 Conagra Brands Inc.
6.4.7 Link Snacks Inc.
6.4.9 Blue Diamond Growers
6.4.10 Clif Bar & Company
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Snack Food Market market is studied from 2016 - 2027.
What is the growth rate of Snack Food Market?
The Snack Food Market is growing at a CAGR of 3.37% over the next 5 years.
Which region has highest growth rate in Snack Food Market?
North America is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Snack Food Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Snack Food Market?
Unilever Plc, Kellogg's, Pepsico Inc, General Mills, Nestle S.A are the major companies operating in Snack Food Market.