Snacks Market Size, Share & Trends Analysis Report By Product (Frozen & Refrigerated, Fruit, Bakery, Savory, Confectionery, Dairy, Others), By Distribution Channel, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global snacks market size was valued at USD 1,450.4 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 2.7% from 2022 to 2030. The pandemic-induced lockdowns coupled with the global adoption of the work-from-home culture have led to the exponential growth of the snack market in the last two years. This trend is expected to sustain during the forecast period, as snack manufacturers are focusing on product innovations such as healthier and organic products. COVID-19 lockdowns prompted an increase in at-home consumption of food products. COVID-19 lockdown implementations and extensions had given snack products a significant role in households all across the globe. Because more people are working from home, the desire for "on-the-go indulgence" has intensified. Over the previous two years, demand for packaged snacks such as cookies, chips, noodles, and macaroni has increased as the pandemic has encouraged consumers to establish new in-home dining circumstances. 

Rising health concerns globally, and the shifting lifestyles and dietary patterns, have fueled demand for a variety of snacking options. A significant trend fueling the industry is the increasing substitution of meals with snacks, as well as the rising demand for vegan, allergen-free snacks. International brands have seized this opportunity of increased demand for snacks, by packaging their products in more convenient ways to extend shelf life and promote on-the-go snack consumption. For instance, U.S.-based Kwik Lok Corp. offers its Eco-Lok closure packaging solution, which enables consumers to reclose the package and consume the snacks later. The industry growth is expected to be aided by innovative food products, flexible packaging solutions that meet customer needs, and busy lifestyles.

Consumers have switched their focus from taste and more animal protein to a broader range of product attributes as their consumption patterns have gradually but steadily changed. Shoppers are seeking a mix of processed and fresh products to help them maintain a healthy, balanced diet. Functional snacks are becoming more popular, and the expectations and needs of young demographic customers are evolving at a rapid pace.

Consumers all across the world are becoming more conscious of their snacking habits, shifting toward healthier options such as vegetables and fruit chips, and granola bars because of the metabolic benefits they provide. During the forecast period, the growing demand for food items that aid in weight management owing to the widespread prevalence of obesity in developed countries such as the U.S. and the U.K. is expected to propel the market for healthy snacking choices.

As a result of the pandemic, many snack food private businesses have emerged in the market to meet the increased demand. Snacks are a quick and accessible source of nutrition and energy in developed countries, thus demand for novel snack products is always high. The number of independent working women, dual-income families, and nuclear families is already on the rise across the globe. The demand for convenience meals has increased substantially as a result of this demographic shift. Snack food is widely regarded as the most convenient alternative to regular food, as it may be consumed at any time, thereby propelling snack market demand globally.

Product Insights

Frozen & refrigerated dominated the product segment in 2021. Frozen goods proved to be a pandemic powerhouse in 2020 when panicked customers stocked their freezers with longer-shelf commodities during the lockdown's peak. While customer worry is waning as the number of new COVID-19 cases declines, frozen food sales remain strong compared to pre-pandemic levels.

However, savory snacks are expected to register the fastest CAGR during the forecast period. In North America as well as, the Middle East and Africa, meat snacks such as jerky and dried meat, grew at a rapid pace. Customers' increasing awareness of health and wellbeing has compelled manufacturers and producers to respond by offering a variety of low-fat, low-calorie, and gluten-free items.

Consumers' growing health awareness was accompanied by an increase in anxiety and uncertainty about the pandemic. As consumers tried to treat themselves with snacks that matched their dietary and health goals, these trends combined to make the concept of "permissible indulgence" more essential than ever. COVID-19 has a long-term impact on consumers; therefore, health and wellness trends will be a primary driver of future snack growth. Products that provide "permissible pleasure" with less sugar or clean labeling are expected to rise in popularity, while new types of functional products will emerge to fulfill a wider range of customer needs.

Distribution Channel Insights

The supermarkets & hypermarkets accounted for the major share of the global snacks market in 2021. In many high-income countries, supermarkets & hypermarkets are the primary suppliers of snack food. For instance, according to an analysis by the Institute for Local Self-Reliance, a non-profit organization in the U.S., Walmart controls more than 50% of grocery sales in the U.S. However, market growth is being driven by increasing retail infrastructure and the resulting increase in the number of supermarkets & hypermarkets in urban areas across Asia, the Middle East, and Africa.

Successful e-commerce companies, ranging from Amazon in the U.S. to JD.com in China, have been opening or acquiring physical supermarkets in recent years. However, internet businesses are experimenting with new forms of automation in order to transfer some of their digital efficiency to their new brick-and-mortar storefronts. As more people purchase online, brick-and-mortar retailers will have to adapt, particularly by transforming shopping from a transaction to a pleasant lifestyle activity.

Consumers, particularly Millennials and Generation Z, prefer ready-to-eat products. Partnerships between online food delivery firms and manufacturers of ready-to-eat foods are also assisting the snack food sector to thrive. For instance, in February 2022 Grubhub, an American online and mobile prepared food ordering and delivery platform announced its collaboration with 7–Eleven, Inc. The delivery platform Grubhub Goods delivers 7–Eleven convenience items across the U.S. Simultaneously, the participants are forming partnerships with hypermarkets and supermarkets all around the world to meet the growing demand.

Regional Insights

Asia Pacific held the largest market share globally accounting for around 34.3% of global value in 2021. When it comes to food, consumers value convenience and flexibility, and packaged snacks are one of the top winners in this category. Packaged snacks are ideal for grab-and-go consumption due to their portability and ready-to-eat (RTE) nature.  For instance, consumers in China, where snacking is typically used as a quick fix for conventional meals, are becoming more wellness-oriented, thereby expanding the market for healthy snack options. Clean label snacks are another trend that is being witnessed in this region.

Consumers are shifting from eating at home or buying traditional street snacks from food bikes or trucks to having packaged snacks readily available, as the Asia Pacific gets more metropolitan with better-developed urban supermarket outlets. Consumers are switching from unpackaged to packaged snacks as a result of this expansion of infrastructure.  For instance, in August 2020, India’s largest retail chain Reliance Retail acquired Future Group’s retail and wholesale business, as well as its logistics and warehousing business for USD 3.4 billion. This has led to Reliance commanding one-third of brick-and-mortar stores in India.

Snacks are the perfect food that caters to Asian consumers' desire to save time and eat on the go. As a result, meal-replacing snacks such as frozen & refrigerated products, and savory snacks are expected to remain prevalent. To maintain their competitive edge, big firms are gravitating toward snacking categories and are acquiring smaller snacking brands. With items like easy-to-eat and neatly packed yogurts and multi-compartment packs, even dairy and staples companies are attempting to tap into consumers' snacking habits.

Key Companies & Market Share Insights

The market is fragmented with the presence of global and regional players offering a variety of snacking options customized to the local palates.

• In February 2020, PepsiCo acquired Be & Cheery, one of the largest online snacks companies in China, from Haoxiangni Health Food Co for USD705 million. The acquisition of Be & Cherry marks an important step in the Company’s goal to become China’s leading consumer-centric food and beverage company.

• In July 2019, The Ferrero Group and its related companies (“Ferrero”), a global confectionary group, completed its acquisition of the cookie, fruit, and fruit-flavored snack, ice cream cone, and pie crust businesses from The Kellogg Company.

• In February 2019, Unilever acquired British snack brand Graze from investment firm The Carlyle Group. Graze offers a variety of snacks with no artificial ingredients, including nuts, seeds, trail mixes, and bars.

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

• General Mills, Inc.

• PepsiCo

• The Kraft Heinz Company

• Nestlé

• The Kellogg Company

• Unilever

• Calbee

• Intersnack Group GmbH & Co. KG

• Conagra Brands, Inc.

• ITC Limited

• Grupo Bimbo

• Danone

• Mars, Incorporated

Snacks Market Report Scope

Segments Covered in the Report

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

• Product Outlook (Revenue, USD Billion; 2017 - 2030)

  • Frozen & Refrigerated

  • Fruit

  • Bakery

  • Savory

  • Confectionery

  • Dairy

  • Others

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

  • Supermarkets & Hypermarkets

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Billion; 2017 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE

    • South Africa