The global extruded snacks market is projected to witness significant growth during the forecast period on account of changing customer lifestyle and rising demand for packaged foods, such as ready-to-eat food products. The shift in customer preference is largely driven by increasing purchasing power, rapid product launches, and rising health consciousness. In line with this, the market players are introducing healthy snacks for weight loss, with maximum vitamin and mineral contents. The growing population and migration in emerging economies provide an impetus to the market growth.
Changing Consumption Pattern of the Customers to Drive the Market Growth/ Increasing Demand for Packaged Food due to Busy Lifestyle Drives the Market Growth/ Growing Health Consciousness to Drive the Demand for Healthy Snacks
Globally, the fast-paced life and busy work schedule, specifically in the urban areas, drives the demand for packaged food that requires less cooking time and is easy to make. Rising per capita income and increasing the millennial population is subsequently driving the demand for new product launches. In line with this, the leading players are adopting aggressive marketing strategies to gain a customer base and sustain in the raging competition.
Shifting consumer preference towards cereals as wholesome breakfast, especially in the developing economies, drives the market growth. In Asia-Pacific, Kellogg’s generated about USD 26 million of revenue in the first quarter of 2018, up by 13% from USD 23 million in 2017. Whereas, the net sales of the company increased by 11% in 2018, which is about USD 252 million.
In the last few years, the demand for healthy snacks has been witnessing a considerable surge, compelling the market players to develop protein and fiber-rich snacks. For instance, Naturell launched a seven-grain protein snack in India, made from oats, wheat, soy, ragi, gram, corn, and rice, containing three times more protein and three times less fat than traditional snacks.
The puffed and extruded snacks have better nutritional value as they consist of around 120 calories per serving, while the oil-laden snacks consist of more than 150 calories per serving. Additionally, the protein and vitamin content in the extruded snacks can be altered by changing the capacity of raw material, further encouraging the players to develop healthy snack products.
Extruded Snacks Market: Segmentation
Potato Segment to Witness Significant Growth in the Market/ Rising Demand for High Starch Content Snacks to Drive the Potato Segment
The potato segment is projected to witness significant growth in the extruded snacks market as it is widely used as a raw material for its starch content. The extrusion process is a relatively low moisture process that requires around 10-40% moisture in the raw materials. However, the moisture content in potato is around 63-83% which makes the drying process necessary, thereby leading to additional costs to the manufacturer, thus reducing the demand for potato as a raw material. The wheat segment, on the other hand, is projected to witness steady growth owing to its low fat and carbohydrate and in dietary fiber properties.
Hypermarket and Supermarket Segment to Hold the Largest Market Share/ Walmart: World’s Largest Hypermarket with Presence in over 11,088 Locations
The hypermarket and supermarket segment holds the largest market share on account of its widespread availability across the globe. Walmart Inc., a multinational retail corporation, has established a robust hypermarket chain in more than 11,088 locations across 27 countries. The availability of several options has compelled the customers to purchase extruded snacks from supermarkets. The in-store marketing through displays and right placing of the product to increase impulsive buying of snacks drives the segment growth.
Influence of Western Culture to Increase the Consumption of Extruded Snacks in Asia-Pacific/ Increasing Investments by Prominent Players to Develop New Products Drives Asia-Pacific’s Market Growth
Asia-Pacific holds the highest share in the extruded snacks market and is expected to dominate the market during the forecast period. The availability of snacks at affordable prices, the presence of umpteen local vendors, and rising spending power drive the regional market growth. India’s extruded snacks market is projected to grow at a faster rate on account of increasing investments by prominent players to develop new products in order to increase the customer base. In 2018, PepsiCo secured the largest revenue from the APAC region, and the company is expecting higher sales in the coming years. The below-mentioned info-graph depicts the estimated market potential across the globe.
The extruded snacks market is largely driven by the rising adoption of western culture and debouching trends among the millennial population. Consumers in the region are price-sensitive and prefer affordable snacks due to changing economic conditions. Moreover, the rising presence of hypermarkets and supermarkets in the region, offering low priced products, drives the regional market growth.
North America region is anticipated to have a substantial growth rate in the global extruded snacks market. The rising consumer income of the individuals in the region is a positive indicator as the consumers are able to spend beyond the necessities, thus making way for extruded snacks. Moreover, the shifting preference of consumers towards healthy snacking and the trend for clean label and non-GMO snacks is supporting the regional market growth. The consumers present in the region are health conscious and are increasingly concerned of the health benefits associated with the products. The health-conscious consumers are significantly influencing the advancements and innovations in the North American extruded snacks market.
The U.S. Snack Index survey data represents that many American consumers wish to try new snacks and prefer variety and convenience, particularly during the outbreak of the pandemic coronavirus. The major players in the market have an extensive distribution channel in the region which has strengthened the market growth. During the global pandemic, the Frito-Lay company launched a website for directly serving its customers, who are facing problem to locate their favorite snack. Companies are changing strategies and will continue to do so to address the increasing consumer needs. These factors are considerably contributing to the growth of the extruded snacks market in the region.
Extruded Snacks Market Segmentation
By Distribution Channel
Frequently Asked Questions (FAQs)