Global Savory Snacks Market 2022-2028

Global Savory Snacks Market 2022-2028

Global Savory Snacks Market Size, Share, & Analysis by type (packaged (organized) and unpackaged (unorganized). The packaged savory snacks market is segmented on the basis of the savory snacks category that includes extruded snacks, nuts & seeds, potato chips, and meat snacks. The unpackaged savory snacks market is segmented on the basis of the savory snacks category that includes extruded snacks, nuts & seeds, potato chips, and meat snacks. The global savory snacks industry is growing at a CAGR of 6.3% during the forecast period (2021-2028). The industry growth is driven by a major shift in consumer preferences towards flavorful products. The demand for convenience food is on the rise, attributed to the increasing disposable income, growing urbanization, and changing demographic trends. The convenience food products including potato chips, puffed snacks, nuts snacks, among others are increasingly consumed around the globe. The declining prices for the processed food are generating the demand for convenience food. Robust advertisement is also one of the propelling forces behind the rising adoption of convenience food across the globe. Few of the food manufacturers and packagers are among the biggest advertisers in the US. The meal and snack service providers are changing their service patterns by adopting the advertisement services to generate an additional source of income. The market demand for convenience food is being supported by the amalgamation of an increased penetration of the internet in the form of online delivery services for the consumers. As the customers are demanding quick delivery, many big tech companies such as Amazon and Google, are even starting to offer same-day delivery services to meet the ever-rising customer expectations. The e-commerce platforms are also actively collaborating with several offline retailers that are offering several delivery options which include store-based partnerships, home delivery, drone delivery, and locker services. For instance, US Foods Direct, which is integrated into US Foods’ online ordering platform, providing operators with more than 40,000 specialty products. Thus, such platforms are likely to enhance the demand for food products and services in the US.

Impact of COVID-19

The recent outbreak of the COVID-19 has positively impacted the savory snacks market owing to the rising demand for convenience food items and stringent lockdown measures. The global savory snacks market value generated in 2021 was over $87.4 billion, which is expected to exceed $138.3 billion in 2028. The market value in 2021 is influenced by the series of lockdown implementation, strict social distancing norms, and the demand for on-the-go food items due to increasing work from home culture across the globe. The sedentary lifestyle and global rise in work from home trend for longer periods has led to the increased demand for savory snacks across the globe. However, a new trend in snacking is the shift of consumers towards healthy snacking habits, that paved way for “Better-for-You” snacking options rather than chips or other snacks made of potato, corn, and other less nutritious ingredients. Due to this, the manufacturers are focusing on healthy and organic savory snacks. The manufacturers are also offering low-calorie, healthy, and gluten-free snacks. In addition to this, several flavors have been introduced by the manufacturers to innovate and respond to the demands of the local markets in the country, which adds to the growth of the market. Further, the consumers are also willing to pay more for premium products that claim to offer healthier, unique, and efficient products. Thus, the inclination of millennials towards the consumption of healthy and organic food further creates a demand for healthy and natural snacks across the country.

MARKET SEGMENTATION

The market is broadly defined as packaged (organized) and unpackaged (unorganized) market. The packaged savory snacks market is dominating the market share, accounted for $73.7 billion in 2021, and expected to exceed $115.5 billion in 2028. The packaged segment covers the market value derived from branded savory snacks in different geographies. The branded savory snacks are offered by key market players which includes PepsiCo, Inc., Kraft Heinz Co., Mondelēz International, and Kellogg Company, among others. Whereas the unpackaged savory snacks market held the least market share of 15.7%, accounted for nearly $13.7 billion in 2021 and is estimated to reach around $22.9 billion in 2028. The market for the unpackaged savory snacks is driven by the growing local players in the market, especially in the emerging economies. Further, in developed economies, various family-owned businesses has started to sale the unbranded savory snacks that have contributed to the market in developed economies such as the US, UK, Germany, Canada, France, and Spain. The packaged savory snacks market is segmented on the basis of the savory snacks category that includes extruded snacks, nuts & seeds, potato chips, and meat snacks. The packaged potato chips and extruded snacks (known as puffed snacks) are major products in the packaged savory snacks category, which is seeing rising sales. The market for packaged potato chips was nearly $27.5 billion in 2021 which is anticipated to grow at a CAGR of 6.2% during the forecast period. Whereas the market for packaged extruded snacks was nearly $18.2 billion in 2021, which is anticipated to reach around $28.7 billion in 2028, growing at a CAGR of 6.2% during the forecast period. The extruded snacks are largely consumed by the customers during leisure activities, travel, streaming videos, and even at outings. These consumer trends are anticipated to boost the demand for extruded snacks over the forecast period. The packaged nuts and seeds segment is comprised of three major categories which includes- Nuts such as almonds, cashews, peanuts, hazelnuts, pistachios, pine nuts, pecans, and macadamia nuts; Seeds such as pumpkin, chia, sunflower, flax, and sesame. Easy-to-eat, protein- and antioxidant-rich, and energy-boosting attributes are contributing to category growth with the arrival of the health-conscious consumer. The market value of the packaged nuts and seeds segment was around $20.5 billion in 2021 which is anticipated to reach around $32.2 billion in 2028, growing at a CAGR of 6.1% during the forecast period. The packaged meat snacks include beef sticks, meat jerky, pork rinds, and turkey sticks. The global packaged meat snacks market held the least market share accounted for nearly $7.5 billion in 2021, which is anticipated to reach around $11.4 billion in 2028, growing at a CAGR of 5.6% during the forecast period. The unpackaged savory snacks market is segmented on the basis of the savory snacks category that includes extruded snacks, nuts & seeds, potato chips, and meat snacks. Unpackaged potato chips and nuts and seeds are major products in the unpackaged savory snacks category, which is seeing rising sales. The market for unpackaged potato chips was nearly $4.9 billion in 2021 which is anticipated to grow at a CAGR of 8.2% during the forecast period. Whereas the market for unpackaged nuts and seeds was nearly $4.3 billion in 2021, which is anticipated to reach around $6.6 billion in 2028, growing at a CAGR of 5.9% during the forecast period. The unpackaged extruded segment was around $3.2 billion in 2021 which is anticipated to reach around $5.6 billion in 2028, growing at a CAGR of 8.2% during the forecast period. The unpackaged meat snacks held the least market share accounted for nearly $1.3 billion in 2021, which is anticipated to reach around $2.0 billion in 2028, growing at a CAGR of 5.5% during the forecast period. The unpackaged savory snacks market is driven by the major contribution of the emerging economies such as China, India, Brazil, Thailand, Mexico, Pakistan, Russia, Vietnam, and the Philippines, among others. The availability of a large number of local savory snack manufacturers in these economies is driving the market growth of the unpackaged savory snacks market.

REGIONAL ANALYSIS

The global savory snacks market was valued at $87.4 billion in 2021 and expected to exceed $138.3 billion in 2028. All regions are experiencing growth, with Asia-Pacific representing the largest savory snacks market, together accounting for 36.1% of the global sales. The emerging economies such as China, India, Vietnam, and the Philippines are seeing an outsized growth, driven by the demographic shifts, and growing trend for premium and healthy snacks. The market in Asia-Pacific is driven by the increasing disposable income and growing urbanization in major economies. The market in Asia-Pacific is growing at the highest CAGR of 9.7% during the forecast period. China held almost 46.0% of the total Asia-Pacific savory snacks market attributed to the high demand for potato chips and nuts and seeds snacks. The rising disposable income is one of the key factors encouraging the growth of the market in emerging economies. As per the World Bank, the GDP per capita of China increased from $9,977 in 2018 to $10,262 in 2021. Further, in the Asia-Pacific region, India is the fastest-growing market, growing at a CAGR of 14.7% during the forecast period. India has emerged as the second fastest-growing economies around the globe and is expected to be one of the top three economic powers by 2025, backed by its strong associations and trade partnerships. Further, most of the Indian population prefers to consume home-made snacks, which results in the demand for unpackaged savory snacks in the country. North America and Europe hold a considerable market share accounted for nearly $26.5 billion and $20.2 billion in 2021, respectively. The wide presence of the major snacks manufacturer such as PepsiCo, Inc., The Kellogg Co., The Kraft Heinz Co., Conagra Brands, Inc., and General Mills, Inc., and significant innovations in food & beverage in the region is expected to contribute to the growth of the savory snacks market. Further, other key factors that are contributing to the growth of the markets includes high disposable income and increased demand for convenient food. Owing to the quickening pace of life and changing lifestyles of people there has been an increased demand for the grab and go savory snacks across the region. The preference of flavors foods further enhances the demand for savory snacks in the region. Besides, a rise in the population, and the increased disposable incomes also motivates consumers to spend more on premium and packaged products which in turn will drive the growth of the North American and European savory snacks market over the forecast period. The rest of the world is broadly divided into Latin America and the Middle East and Africa. The market for the rest of the world was around $9.2 billion in 2021 which is estimated to reach around $13.5 billion in 2028, growing at a CAGR of 5.4% during the forecast period. The key factors that are supporting the growth of the market include changing eating habits along with the rising demand for convenient food.

MARKET PLAYERS ANALYSIS

PepsiCo, Inc., the Kraft Heinz Co., General Mills, Inc., and ConAgra Brands are among the major savory snack players in the global market. The savory snacking industry continues to see a high level of mergers and acquisitions activity as the industry participants leverage acquisitions to orient product portfolios towards broad demand trends, favoring healthy, organic, and better-for-you snacks. By acquiring fast-growing, innovative brands, the strategic companies reach a diverse set of consumers and enhance market positioning. PepsiCo held the highest market in the global savory snacks market and is continuing to grow by adopting several strategies such as mergers and acquisitions, partnerships, collaborations, and product launch. Mergers and acquisitions are the key strategies adopted by PepsiCo. Major acquisition by PepsiCo in the global savory snacks market includes-

In February 2021, PepsiCo, Inc. announced to acquire Hangzhou Haomusi Food Co., Ltd, one of the largest online snack companies in China, from Haoxiangni Health Food Co., Ltd. for $705 million.

In July 2021, PepsiCo acquired Pioneer Foods Group in a transaction valued at $1.7 billion. The company aimed to expand in South Africa and into sub-Saharan Africa.

In November 2018, PepsiCo acquired the UK-based Pipers Crisps manufactures snacks and is a large producer of potato chips sold in dining establishments such as hotels, restaurants, cafes, and pubs.