Global Snack Food Market - 2023-2030

The Global Snack Food Market reached USD 485.4 million in 2022 and is expected to reach USD 659.2 million by 2031 and is expected to grow with a CAGR of 3.9% during the forecast period 2024-2031. One emerging trend in the snack food market is the growing popularity of plant-based snacks. For instance, companies like Beyond Meat have introduced plant-based snack products such as protein bars and vegan jerky, which increased demand for plant-powered snacking choices.

The snack food market is a thriving and dynamic industry driven by consumer preferences for convenient and indulgent snacking options. With increasing urbanization, busy lifestyles, and changing eating habits, the demand for ready-to-eat snacks continues to rise. Snack food companies are responding by offering a wide range of products, including sweet snacks and savory snacks, healthy alternatives, and innovative flavors.

One driver in the snack food market is the rising popularity of snacking occasions. According to market analysis 94% of adults in the United States snack at least once a day, with 50% snacking two to three times a day. This trend is driven by changing lifestyles, with people seeking smaller, more frequent meals and snacks to fuel their busy schedules.

Market Growth and Trends

Rising Demand for Snack Flavors and Varieties Fuels the Market Growth

The snack food market trend is driven by the ever-increasing demand for diverse and innovative snack flavors and varieties. Consumers are constantly seeking new taste experiences and unique combinations that tantalize their palates. Snack manufacturers respond by introducing an array of flavors, ranging from traditional to exotic, and experimenting with unconventional ingredient combinations. This driver fuels product differentiation, brand loyalty, and consumer engagement.

Manufacturers invest in extensive research and development to stay ahead of evolving flavor trends, ensuring a steady stream of exciting options for snack enthusiasts. The demand for new and exciting snack flavors and varieties acts as a catalyst for growth, driving market expansion and customer satisfaction.

Emphasis on Quality Ingredients and Manufacturing Processes Elevates Snack Market Standards

The snack food market trend is driven by the increasing focus on snack ingredients and manufacturing processes. Consumers are becoming more conscious of the quality and sourcing of ingredients in their snacks. There is a growing demand for snacks made with natural, organic, and clean-label ingredients. Manufacturers are responding by offering healthier options, reducing artificial additives, and incorporating functional ingredients that provide nutritional benefits.

Moreover, snack manufacturing processes are evolving to enhance product quality, consistency, and efficiency. Advanced technologies and manufacturing practices enable manufacturers to meet consumer expectations for freshness, texture, and taste while ensuring cost-effective production. The emphasis on snack ingredients and manufacturing processes reflects the industry's commitment to delivering high-quality, flavorful, and responsibly produced snacks that meet the changing needs and preferences of consumers.

The Market is Facing Challenges in Meeting Consumer Demands for Healthy, Convenient, and Sustainable Snack Options

One key restraint of the snack food market is the inherent challenge of balancing the demand for healthy snacks, convenience snacks, and sustainable snack packaging. While there is an increasing consumer preference for healthier snack options, convenience snacks, often characterized by high levels of sugar, salt, and artificial additives, still hold a significant market share.

This creates a dilemma for manufacturers as they strive to cater to both health-conscious consumers and those seeking quick and convenient snack choices. Moreover, snack packaging presents an environmental concern, as single-use plastic packaging contributes to waste and sustainability issues. Finding a harmonious balance between healthy snacks, convenience, and sustainable packaging is crucial to overcoming this restraint and meeting evolving consumer expectations in the snack food market.

Market Segmentation Analysis

The global Snack Food market is segmented based on type, distribution channel, and region.

Confectionery Snack Food Segment Dominates Market Share and Embraces Innovation

The global snack food market has been segmented by product type into Bakery Snacks, Confectionery, Salted Snacks, and Specialty & Frozen Snacks.

The confectionery snack food segment holds a substantial market share, typically ranging from 30% to 35% of the overall snack food market share. It encompasses a wide range of sweet treats, including chocolates, candies, gums, and sugary snacks. The snack food market trend revolves around innovation, with a focus on unique flavors, creative packaging, and healthier ingredient options.

Manufacturers are introducing natural and organic ingredients, reduced sugar content, and portion-controlled options to cater to changing consumer preferences. Premium and artisanal confectionery snacks are gaining popularity, targeting consumers seeking high-quality and luxury experiences. Impulse buying, gifting occasions, and seasonal demands drive market growth.

However, there is a growing emphasis on health-conscious snacking, challenging manufacturers to find a balance between indulgence and healthier offerings. The confectionery snack food segment is expected to continue evolving to meet consumer demands in the dynamic snack food market.

Market Geographical Share

The North America Region Held the Largest Share of the Snack Food Market.

North America dominates the snack food market as the largest market share, accounting for approximately 35% of the global snack food market size. The region's strong position can be attributed to factors such as high demand for convenient and on-the-go snacks, a culture of snacking, and a wide variety of snack options available.

The Canadian market also plays a significant role, representing a substantial portion of the snack food market share. With a growing preference for healthier snack options, there has been a shift towards better-for-you snacks, including products with reduced fat, sugar, and artificial ingredients. Despite the challenges posed by the COVID-19 pandemic, the North American snack food market has demonstrated resilience and is expected to continue its steady growth in the coming years, driven by innovation, convenience, and evolving consumer preferences.

Market Key Players

The major global players in the market include PepsiCo, Nestlé, General Mills Inc, Mondelez International, Mars, Incorporated, Kellogg Company, The Hershey Company, Kraft Heinz Company, Campbell Soup Company, and Conagra Brands.

COVID-19 Impact on Market

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:

Covid-19 Impact:

The COVID-19 pandemic had a significant impact on the snack food market, with changes in consumer behavior and market dynamics. According to a market research report, the global snack food market experienced a decline in growth rate by approximately 2.3% in 2020 compared to the previous year. This downturn can be attributed to factors such as disrupted supply chains, reduced consumer spending, and shifting preferences towards healthier snacking options.

Additionally, the closure of restaurants, cinemas, and other entertainment venues led to a decline in impulse purchases of snacks. However, certain segments like packaged snacks and convenience foods witnessed increased demand as consumers stocked up on pantry essentials during lockdowns. As the world gradually recovers from the pandemic, the snack food market is expected to rebound and regain its growth trajectory.

Key Developments
• On July 14, 2022, Agthia Group PJSC, one of the region’s leading food and beverage companies, announced that its Board of Directors has approved a strategic acquisition of 60% of Auf Group, a specialized healthy snacks and coffee manufacturer and retailer in Egypt.
• On January 19, 2022, The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz”) based in the U.S., announced that it completed its acquisition of an 85% stake in Germany-based Just Spices GmbH (“Just Spices”). The remaining 15% ownership stake has been retained by Just Spices’ three founders, who will continue with the company and focus on driving the business and its international growth.
• On April 20, 2023, Wipro Consumer Care and Lighting based in India, on Thursday announced the acquisition of Brahmins, a Kerala-based traditional vegetarian, spice mix and ready-to-cook brand and it has also drawn up plans to launch its snacks brand targeting the southern market in India.

Why Purchase the Report?
• To visualize the global snack food market segmentation based on type, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development.
• Excel data sheet with numerous data points of Snack Food market-level with all segments.
• The PDF report consists of a cogently put-together market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global snack food market report would provide approximately 53 tables, 49 figures, and 190 Pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies