Processed Snacks Market Size is Slated to Grow Substantially at 4.7 % CAGR During Forecast Period (2022-2027).
A processed snack is any food that has been altered in some way during preparation. In the last two decades, changing eating habits among adolescents and children have led to an increase in the consumption of processed foods. And in high-income economies, processed food is considered a key source of sodium consumption. The continuously rising population, coupled with improving consumer spending, especially across developing economies such as India, Brazil, China, and Argentina, is expected to drive the processed snacks market in years to come in. Additionally, the growing number of two-income families living with children and parents are demanding processed snacks to minimize cooking time, and this trend is another factor bolstering the demand for processed snacks.
Ingredients such as salt, sugar, and fats are added in processed snacks to enhance flavor and extend the shelf life. These ingredients also make these foods high in calories. Studies have shown that high levels of calories produced from fats, sodium, and sugar are associated with high blood pressure, which can further lead to health problems, such as cardiovascular and kidney diseases, stomach cancer, and obesity. Rising awareness and health consciousness have seen a decline in the consumption of processed snacks with high calories and micronutrients, such as fats. This change in consumer sentiment is anticipated to be the primary factor inhibiting market growth during the forecast period.
On the other hand, the demand for healthy processed snacks is on the rise owing to the shifting consumer trend toward dieting and low-calorie processed snacks. Manufacturers in the processed food industry are constantly striving to develop new products through extensive R&D that meet the changing consumer demands. For instance, they are using baking as an alternative to frying to produce better-for-you snacks, which are lately gaining a lot of traction in the market, especially among millennials.
| Report Metric | Details |
|---|---|
| Base Year | 2022 |
| Study Period | 2017-2029 |
| Forecast Period | 2023-2031 |
| CAGR | 4.7% |
| Market Size | 4221 |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Geographies Covered |
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Asia-Pacific is projected to be the largest and fastest-growing market for processed snacks during the assessment period. The growth of the regional market can be attributed to the region's strong food processing industry. Also, the rising worker population and growing female workforce are creating robust demand for on-the-go food products due to busy lifestyles.
As the fastest growing and the most dynamic market, Asia-Pacific has grabbed the attention of a large number of international players, as the region's large population, improving purchasing power, changing consumer tastes, busy lifestyles, and rising health considerations offer significant growth potential for the market. Thus, key market players are expanding their operations on a large scale in the region through various business strategies, such as mergers and acquisitions, collaborations, and campaigns. For instance, in January 2020, DuPont Nutrition & Bioscience, the food and beverage arm of DuPont de Nemours, Inc., launched a snacking campaign named 'snack it right' that focuses on research into Asia-Pacific's consumer trends. Through this campaign, the company plans to form a strategic partnership with food manufacturers to capture the growing and untapped markets in the region.
North America's processed snacks market — driven by the growing consumption of convenience food and healthy snacks — is pegged to be the fastest-growing market for processed snacks during the forecast period after Asia-Pacific. Present-day lifestyles and the presence of strong distribution channels of B2B and B2C sales drive the demand for ready-to-eat and on-the-go food items in the region.
Obesity is a key health concern among individuals in the region, especially the young demographics, and the region's high prevalence of obesity has seen an increase in the incidence of health problems such as cancer, coronary artery disease, type 2 diabetes, and stroke. For instance, as per the U.S. Department of Health and Human Services, the prevalence of obesity increased from 30.5% to 42.4% between 1999–2000 and 2017–2018. Thus, individuals in the region are now shifting to healthy eating habits, which has also compelled manufacturers in the food processing industry to offer low calorie processed snacks. New entrants in the market could tap this trend as an opportunity to carve a niche for themselves.
Europe is anticipated to have a prominent share in the global processed snacks market. Sustainability is a key trend in the region, whether it's related to the environment or food processing. The region's populace is changing its eating habits toward more personalized and transparent diets. This demand for sustainable production in the region has increase opportunities for manufacturers and exporters engaged in the food processing business to expand their business and meet the rising demand.
As per the European Snacks Association asbl, in 2018, the retail value of the savory snacks market in Europe amounted to around USD 19.5 billion, which also represented nearly 1.5% of the European food and beverage market in the same year. The regional market is led by countries such as the U.K., whose savory snacks market was valued around USD 5.7 billion in 2018. Additionally, countries such as Netherlands, Norway, and Spain also held significant shares country-wise as the per capita consumption of chips/crisps, savory snacks, and snack nuts in these countries is higher than that in the U.K.
The global processed snacks market is bifurcated into two key segments — sweet snacks and savory snacks — on the basis of type. The sweet segment is anticipated to dominate the global market during the forecast period, primarily due to the rising popularity and increasing consumption of bakery and confectionary items. The high nutrient value and affordability of bakery items drive their demand, particularly in light of the increasing time constraints among dual-working families. This further creates a lucrative growth opportunity for bakery and confectionary chains to expand their business to meet the rising consumer demand.
Processed snacks can be delivered to customers at a particular location (B2B), such as hotels and restaurants, or at customer intended premises (B2C). The B2C segment is expected to record a higher CAGR during the forecast period, led by the easy availability of the several variants of processed snacks food at a single location. Hypermarkets and supermarkets record substantial sales and can further implement growth strategies to expand their customer base. Further, the exponential growth of e-commerce across developing economies, such as India and Brazil, is also likely to augment market growth in years to come.
