The global snack pellet market is expected to reach over USD 8 billion by 2024, growing at an estimated CAGR of around 6% from 2016 to 2024. Snack pellet is considered to be a prominent market due to increasing customer preference for convenience foods. The market is mainly driven by innovations as the industry players in the market focus on introducing new varieties and new ingredients. These upgraded processing techniques help to cater the increasing as well as changing demands of the customers.
Snack pellets are semi-finished products which are either cooked by frying or by hot air expansion. They are preferred by a majority of customer due to longer shelf life, stability, and bulk density. These products are also convenient to store as compared to other ready to eat alternatives. Snack Pellet market is highly competitive due to the presence of large and small scale industries.
Globalization is expected to play a significant role in stimulating the snack pellets demand during the forecast period. Globalization is anticipated to help major players to focus on R&D activities through joint ventures, which is further expected to aid the market participants to introduce new ingredients along with better recipes to suit the changing customer demands.
The consumer shift to non-oily foods are also likely to drive the snack pellet market as snack pellets can be converted to ready to eat form using hot air expansion techniques too. This process avoids the use of oil in cooking and hence prevents the formation of acrylamide, which is considered to cause heart disease.
Also different marketing schemes in the form of discounts, various promotional activities, etc. are likely to attract a majority of working class population to consume these ready to eat snacks. Easy Availability of raw materials such as potato starch, corn starch, wheat flour, etc. is another factor which is predicted to drive the market.
Product transportation is a crucial factor considered to affect the growth rate of snack pellet market. A majority of snack pellet manufacturers does not have a distinct process line and hence they have to transfer the products manually from one operational unit to another. In such situations, the pellets are collected in huge plastics and carried to another functional unit. These practices pose a risk of microbial contamination if the plastic bags get punctured.
Quality Assurance is another factor likely to impact the snack pellet market and is quite an issue for small scale manufacturers. It is because certain small scale industries turn a blind eye to several process parameters such as moisture and oil content. Hygienic practices followed by employees involved in manufacturing these products also influence the product quality and thus the market demand.
By types, snack pellets are segmented into potato, corn, rice, tapioca, mixed grains and others (cereals, legumes, etc.). Potato-based snack pellets are widely consumed in the European market. Corn-based snack pellets are also expected to gain popularity due to the introduction of new recipes focused on corn-based ingredients.
By form, snack pellet market is segmented into dying faced, laminated, and tridimensional & gelatinized snack pellets. Further based on the types of equipment used, the market is segmented into the single screw and twin screw extruders. Snack pellets are also available in different forms such as soft & crispy to hard & crunchy.
The European market is expected to dominate the market during the forecast period due to increasing popularity of savory snacks and thriving snack food market in this region. Asia Pacific market is gaining momentum due to large-scale production and export of inexpensive snack pellets to the U.S and other developed markets in Europe.
Also, some snack manufacturing companies have established their manufacturing base in Asia Pacific region due to the availability of labor and raw material. However, underdeveloped regions such as Africa and certain parts of Middle East are anticipated to struggle due to intensifying costs of raw materials.
Large companies in snack pellet market include Balance Foods Inc, Liven S.A., Grupo International Michel, J.R. Short Milling Company, Limagrain Cereal Ingredients, Intersnack Group Gmbh & Co, Pasta Foods Ltd. Other companies including Dalmaza Food Industries Co, Quality pallet, Leng-Dor S.A. are expected to use invest in research and development activities to expand into untapped markets.
Snack pellet market is a competitive market and is expected to grow rapidly during the forecast period due to the presence of large and medium scale industries competing to gain a larger market share. The market is likely to be influenced by ever-changing trends in customer preferences and buying behavior.
Companies will have continuously to introduce newer and better varieties of products with innovative recipes, to survive and generate profit. Factors such as availability and raw material price, attractive packaging coupled with promotional activities, and policies related to hygiene during manufacturing are expected to influence the snack pellet market.
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