Savory Snacks Market Size, Share & Trends Analysis Report, By Product (Potato Chips, Corn & Tortilla Chips), By Distribution Channel (Hypermarkets & Supermarkets, Online), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global savory snacks market size was valued at USD 250.5 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 4.9% from 2022 to 2030. With consumer demand for more experimental healthy snacking experiences, food manufacturers are aiming to appeal to the new "curious consumer" by launching healthier savory snack options. Rising urbanization and hectic lifestyles are impacting the eating habits of consumers who are progressively substituting more flexible, light, and convenient snacking options for main meals.

The COVID-19 pandemic restrictions prompted a couple of emerging trends in the market. With people stuck at home started to snack a lot more and key players such as PepsiCo, Mondelēz International witnessed an increase in sales in the snacks category. According to Harris Poll 2021, 9 in 10 Europeans claimed that they are snacking as much or more than before, partially due to the rise of remote working across Europe and Russia. Such factors are likely to support the growth of the savory snacks market.

According to the Mondelēz International’s 2020 State of Snacking report, during the pandemic, snacking became a source of comfort and a method to break up the monotony of quarantine, with 88% of people adopting or continuing their snacking habits. To capitalize on new opportunities created by the COVID-19 pandemic in the digital space, many companies opted for a digital shift and launched direct-to-consumer e-commerce platforms.

For instance, in May 2020 PepsiCo launched two direct-to-consumer websites in the U.S.-Pantryshop.com and Snacks.com where consumers can order an assortment of the company's products. Snacks.com helps consumers to order from more than 100 Frito-Lay products like Lay's, Tostitos, Cheetos, and Ruffles, as well as dips, crackers, and nuts. Such initiatives by key players in the market are likely to propel market growth.

Snack trends are evolving, and consumers nowadays seek indulgence, adventure, taste, and added health benefits, which presents an added opportunity for manufacturers. According to the report published by the Kerry Group in January 2021, millennials and Gen-Xers are more inclined to novel flavors in snacks, with over 80% in the age group 26- to 35-years claiming that they tend to discover new flavors.

Some of the popular flavors in snacks within this demographic include jalapeno, black truffle, and mustard. To gain maximum traction with this demographic, manufacturers are launching new products in various premium flavors. For instance, in May 2021 Dot's Homestyle Pretzels expanded its product portfolio by launching its newest flavor of honey mustard.

Growing consumer demand for healthy options is influencing categories throughout savory snacks. Consumers are seeking protein-based options for a variety of reasons such as satiety, energy, muscle support, weight loss, healthy aging, and general nutrition. Products that offer convenience and great taste along with healthy ingredients could be a winning strategy for manufacturers.

For instance, in January 2022 Plant-based food brand, Gosh! launched its chilled, ready-to-eat, healthy Snack Bites in more than 1,000 Aldi stores across the U.K. and Ireland. The health options are available in plant-based Smokey BBQ Sweet Potato and Moroccan Spiced Veg made from 100% natural ingredients, baked vegan, and free-from the top 14 allergens such as gluten, soy, and nuts.

Along with product portfolio expansion, many key players are acquiring savory snack brands to expand brand portfolio and international expansion. For instance, in February 2020 PepsiCo announced the acquisition of Hangzhou Haomusi Food Co Ltd, known as Be & Cheery, for USD 705 million. The acquisition would help strengthen the company’s snacks portfolio but also further widen its customer base in the Chinese market by leveraging the brand’s image, manufacturing, and supply chain expertise along with innovation and consumer insights capabilities.

Product Insights

The potato chips segment held the largest market share in 2021 and is expected to maintain its dominance during the forecast period. The introduction of new flavors and roasted potato chips with health benefits is expected to have a positive impact on segment growth. For instance, in April 2021, the Simply Roasted brand launched its new range of Better For You potato crisps, manufactured in Norfolk using a patented roasting process, which cost the company approximately USD 20 million and developing 10 years. The brand is launching chips in flavors such as sea salt, mature cheddar & red onion, sea salt & cider vinegar, etc.

However, the nuts & seeds segment is projected to register the fastest growth from 2022 to 2030. Nuts and seeds are claimed to be good sources of protein, healthy fats, fibers, and vitamins. Rising health concerns of consumers regarding snacking habits have led them to opt for roasted nuts & seeds. For instance, in October 2020 GOOD TO GO, a manufacturer of Keto-certified soft baked bars announced its plan to expand its product line by launching Savory Nut & Seeds Bites in Canada. The nuts & seeds product segment consists of a deluxe assortment of nuts and super seeds such as sunflower, pumpkin, hemp, and chia seeds.

Distribution Channel Insights

The hypermarkets & supermarkets' distribution channels made the largest contribution in the global market in 2021. Changing consumer preferences and the availability of a wide range of products offered by various branded and private labels in these formats is anticipated to have a positive impact on the demand. According to a report published by 360 Packaging in June 2019, 70% of purchases made for snacks in the brick-and-mortar stores are unplanned and most of the supermarkets capitalize on the impulse shopping behavior of consumers in this category.

The online distribution channel is anticipated to grow at the highest rate during the forecast period. Online retail is changing the nature of snacking and is expected to grow as a proportion of snack category sales. The shift to digital commerce has benefited a string of major online retailers such as Amazon, Walmart, and Target. According to a report published by NPD Group in November 2021, the online channel is attracting consumers as 13% of snack options are purchased online, amongst which 85% are eaten as meal substitutes or probably alone and 22% are consumed at work or on the go. Such trends are likely to shape the online segment’s growth during the forecast years.

Regional Insights                                                                                                  

Asia Pacific held the largest regional share in the market, in terms of revenue. The growth in Asia Pacific is driven by countries such as India, Japan, and China as consumers in these countries have started adopting healthier lifestyles on account of rising concerns about childhood obesity. Better-for-you snacks are becoming more available and segments like popcorn, which has experienced significant growth in sales, are meeting consumer demands in the region.

An annual survey by the Harris Poll for Mondelēz International published in February 2022 stated that the survey about snacks covered 250 respondents in India and concluded that 74% of respondents preferred to eat small meals in a day rather than big meals and many meals are replaced by snacking and thus looking out for healthier snacking options with less-salt.

Savory snacks enjoy high demand in Europe as these products are consumed on various occasions by the population in this region. The industry is driven by countries such as the U.K. and Spain as the consumers engage in on-the-go eating in place of whole meals. The demand for savory snacks is also increasing rapidly in countries such as the Netherlands, Norway, and Germany.

Furthermore, new product launches, mergers, and acquisitions in the market bode well with the regional growth. For instance, in November 2020 U.K. based brand-The Savourists launched one of the first-ever savory bars available in two flavors such as Black Olive & Nori Seaweed and a Sundried Tomato & Herb. The bar range would be further available in Sainsbury’s “Taste of Future Bay”.

Key Companies & Market Share Insights

The industry is highly competitive owing to a large number of small and big players. The industry participants in the savory snacks industry constantly engage in new product development and the introduction of new flavors. The profitability of companies majorly depends upon effective marketing, a well-trained sales force, and efficient operations. Manufacturers are diversifying their products on account of rising health concerns among consumers.

• In September 2021, Kazoo launched the world’s first water-saving tortilla chips. The company’s snacks are made with 40% corn germ created from corn starch

• In March 2021, Future Group announces its plan to sell U.S.-based Terra Chips in India. For the expansion, Hain Celestial Group entered into a joint venture to manufacture Terra Chips in India

• In December 2020, Pretzel Pete-snack manufacturer expanded its product portfolio by adding Seasoned Pretzel Pieces to its product range of gourmet pretzel snacks. These products are made up of wheat flour and are available in three flavors as Smokey bacon and cheddar, Buffalo blue, and cinnamon brown sugar.

Some of the key players operating in the savory snacks market include:

• PepsiCo

• The Kraft Heinz Company

• The Kellogg Company

• Calbee

• Hain Celestial

• Conagra Brands, Inc

• General Mills, Inc.

• Blue Diamond Growers

• ITC Limited

• Grupo Bimbo

Savory Snacks Market Report Scope

Segments Covered in the Report 

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global savory snacks market on the basis of product, distribution channel and region.

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Potato Chips

  • Corn & Tortilla Chips

  • Nuts & Seeds

  • Popcorn

  • Pretzels

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Hypermarkets & Supermarkets

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa

    • UAE