Snacks Market Size, Share & Trends Report

Snacks Market Size, Share & Trends Analysis Report By Type (Extruded (Potato, Corn, Rice), Non-extruded (Salty, Refrigerated, Bakery)), By Distribution Channel (Supermarkets & Hypermarkets, Online), And Segment Forecasts, 2019 - 2025

  • Published Date: Jul, 2019
  • Base Year for Estimate: 2018
  • Report ID: GVR-3-68038-196-2
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 205

Report Overview

The global snacks market size valued at USD 439.9 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2019 to 2025. Rising health concerns along with changing lifestyles and diets have spurred demand for various snacking options across the globe. Increasing replacement of meals with snacks, along with more and more people asking for allergen-free, vegan products, is a key trend boosting the market. International brands have been capitalizing on this opportunity by packaging their products in a more convenient manner to increase shelf life and make them easier to consume on the go. Innovative concepts, flexible products matching consumer needs, and busy lifestyles will benefit market growth.

U.S. Snacks Market Size

Private label healthy snacking products are gaining importance in the U.S. as compared to branded products on account of the significant price difference between private labels and branded products; the former is more affordable than the latter. With busy lifestyles, late retirements, and less leisure time, consumers are looking for eating foods that are less messy, convenient, yet nutritional. For many consumers, snacks have become an essential part of their lives. More and more consumers are turning to indulgent snacks that remind them of old times.

Consumers across the globe are extra cautious about their snacking routines and are shifting toward healthy alternatives such as fruits, vegetables, and granola bars because of the added benefits offered by them related to metabolism. Rising demand for weight management foods because of the widespread prevalence of obesity in developed countries such as the U.S. and UK is anticipated to boost demand for healthy snacking options over the forecast period.

Changing traditional consumption patterns has widened the scope for flavor innovation in many regions. Factors such as incremented disposal incomes and increasing population are expected to favor market growth in developing countries. Furthermore, evolving consumer consciousness is slated to uplift the demand for organic snacks in the coming years.

Type Insights

The snacks market is divided into extruded and non-extruded product segments. Non-extruded snacks contributed to more than 89.0% of the total market in 2018 owing to the rising demand for healthy products such as cereal and granola bars, which help in lowering cholesterol, regulating digestion, and increasing energy levels in the body. The rising demand for healthy snacks is anticipated to boost the non-extruded segment over the forecast period.

Product manufacturers enjoy the option of altering or modifying the nutritional content of ingredients associated with extruded products. This can be done by altering the digestion capacity of protein and starch. On the other hand, low GI containing extruded snacks can be easily customized as per the requirement to maintain a balance in nutrition levels. Extrusion technology is gaining prominence among key manufacturers across the globe as it allows experimenting with new shapes and designs.

Non-extruded snacks are those food products that are produced without the use of extrusion technology. These products don’t share similar designs or patterns within a package. Thus, demand for these products is driven by the concept of habitual/regular consumption rather than that of aesthetic appeal. Potato chips, nuts and seeds, and popcorn are some of the key examples of non-extruded product variants.

Limited scope in terms of design and texture of snacks associated with the non-extruded segment has prompted key manufacturers to focus on flavor innovation. For instance, in May 2017, NISSIN FOODS, a Japan-based food company, announced its plans to launch its new product-potato chips in Mainland China. The innovative product featured noodle-flavored chips (potato). This move also highlighted the company’s intent to leverage the manufacturing channels and sales of its noodle-producing facility in Guangdong. Such developments are expected to surface and sustain over the forecast period, thereby strengthening the position of the segment.

Extruded Snacks Product Insights

Extruded potato snacks are rapidly emerging as the industry’s preferred choice of snack when it comes to developing ‘better-for-you snack’ products. Innovations in the healthy potato products segment specialize in kettle-cooked and baked potato manufacturing technology, wherein this technological advancement provides a wide range of products in a variety of shapes, grains, and sizes. Healthy potato products are offered in a wide range of seasonings and flavors such as savory, sweet, salty, and tangy.

Growing inclination among customers toward gluten-free products is a key factor responsible for the rising demand for healthy potato chips. The product also provides an advantage in terms of consumer outreach, as it can be sold through a variety of sales channels.

Growing demand for healthier snack variants is considered as the major factor driving the rice products segment. Rice cakes offer a range of health benefits when prepared from brown rice. These are low in sugar and calories and are generally fat-free and gluten-free. The sales of rice snacks are expected to witness strong gains on account of the growing prevalence of celiac diseases.

Non-extruded Snacks Product Insights

The fastest-growing category is savory snacks, which might be a small segment in terms of share but holds immense promise. Sales of savory snacks, which include crackers, rice cakes, and pita chips, increased at high rates in Latin America in 2018. Meat snacks, which include jerky and dried meat, grew at a significant rate in Middle East and Africa as well as North America. Growing awareness of health and wellness among customers has forced manufacturers and producers to deliver to this demand by offering various low-calorie, low-fat, and gluten-free products.

The rising number of varieties and flavors of popcorn has also been contributing to market growth. Numerous vendors have started including flavors like bacon, blue cheese, spicy or salted caramel, cheesecake, and stout beer to cater to a large consumer base. The growing trend of on-the-go eating is expected to boost demand for popcorn. The rising snacking trend during various time intervals has increased the consumption of popcorn among millennials.

Distribution Channel Insights

Globally, the trade channel mix is becoming highly fragmented because of consumer shift toward small store formats including convenience stores, drug stores, and traditional stores, which are likely to grow at a faster rate over the forecast period. On the basis of value, supermarkets and hypermarkets contribute to more than half the global sales in the retail industry.

In developed countries, sales are concentrated in large supermarkets, contributing to approximately 50% of the total sales. However, convenience stores and hypermarkets are also strong contenders and are expected to restrict the growth of supermarkets during the forecast period. In developing countries, sales are highly fragmented. Food and beverage is the most concentrated category where approximately 45% of sales come from traditional stores.

Global Snacks Market Share

Retailers who enter the online business first and target attractive markets will have a major advantage over those who set up online operations later. In markets such as France and U.K. where online retailing is gaining traction, brick and mortar entrants are pushed to get creative in order to sustain the competition.

Regional Insights

North America accounted for 33.4% of the global market in 2018, in terms of revenue. Changing traditional snack consumption patterns in the region has widened the scope of flavor innovation. Factors such as incremented disposal incomes and increasing population are expected to favor regional market growth. Furthermore, growing obesity concerns in the region are expected to uplift the demand for organic snacks over the forecast period.

The European market is poised for significant growth on the back of the rapidly growing appetite of consumers, most notably for savory snacks. Snack consumption patterns in the country have their genesis in regional tradition and snacking is commonplace on various social occasions.

Asia Pacific is expected to exhibit the highest CAGR of 7.5% over the forecast period. Led by countries such as China, Japan, and India, the regional market is driven by the presence of a large consumer base. Furthermore, the region encourages the entry of new players owing to factors such as easy availability of raw materials and cheap labor.

Key Companies & Market Share Insights

The market is highly competitive in nature and, therefore, marked by an extensive range of new products and flavors. Key players in the global market include Tyson Foods, McCain Foods, Aviko, General Mills, and Pepsico. Acquisitions, mergers, joint ventures, and product innovation remain key strategies in order to increase sales.

Modern eating culture is characterized by a fragmentation of traditional food and beverage consumption. Consumer shift from traditional three planned meals to flexible and easily available options has created various opportunities for manufacturers. Trends like on-the-go food and personalized meals are expected to drive the market.

The desire for fresh food is growing and people are rejecting industrial food. Consumer concerns with cues including locally grown, processed recognizable ingredients, and shortest ingredient lists have accelerated in recent years. Ingredients associated with processed, industrial, or chemical foods are becoming a justification for rejection. Consumers are also avoiding high sodium foods, artificial sweeteners, and hydrogenated oils, which can further hinder the market growth. Some of the prominent players in the snacks market include:

  • Tyson Foods

  • McCain Foods

  • Aviko

  • General Mills

  • Pepsico

Snacks Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 519.61 billion

Revenue forecast in 2025

USD 708.35 billion

Growth Rate

CAGR of 6.2% from 2019 to 2025

Base year for estimation

2018

Historical data

2014 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD million and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Type, product, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; Spain; China; Japan; India; Australia; Brazil; Colombia; UAE

Key companies profiled

Tyson Foods; McCain Foods; Aviko; General Mills; Pepsico

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Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global snacks market report based on type, product, distribution channel, and region:

  • Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Extruded

    • Non-extruded

  • Extruded Snacks Product Outlook (Revenue, USD Million, 2014 - 2025)

    • Potato

    • Corn

    • Rice

    • Tapioca

    • Mixed Grains

    • Others

  • Non-extruded Snacks Product Outlook (Revenue, USD Million, 2014 - 2025)

    • Salty Snacks

      • Crisp & Chips

      • Nut-Based Snacks

      • Popcorn

      • Others

    • Snack Bars

    • Refrigerated Snacks

    • Vegetable & Fruit Snacks

    • Bakery Snacks

    • Others

  • Distribution Channel Outlook (Revenue, USD Million, 2014 - 2025)

    • Supermarkets & Hypermarkets

    • Convenience Stores

    • Specialty Food Stores

    • Online Retailers

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • The U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • U.K.

      • Spain

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

    • Central & South America

      • Brazil

      • Colombia

    • Middle East & Africa

      • UAE

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