The global Processed Snacks Market size was valued at USD XX billion in 2022. It is projected to reach USD XX billion by 2031, growing at a CAGR of 4.7% during the forecast period (2023–2031). Processed snacks are foods that have gone through different stages of preparation and alteration before reaching consumers. These snacks are typically convenient, ready-to-eat, and packaged. They can be sweet or savory and are intended to fulfill the needs of busy lifestyles by giving quick and easy-to-consume options.
The Processed Snacks market growth rate is linked to shifts in casual consumption patterns, which have helped the processed snack industry. Processed snacks are typically intended to be more portable and less perishable than prepared foods. These snacks frequently contain enticing ingredients such as distinctive flavors, peanuts, chocolates, preservatives, and sweeteners, allowing them to be ingested at any time of day and providing an advantage over cooked food. From rising urbanization and growth in the number of expatriates with a desire for work-life balance, strong economic growth coupled with a rising preference for convenience, protein, and healthful eating has increased the demand for packaged and processed snacks to growing investments and funds for the development of with rising investments in R&D by manufacturers. Thus, the growing rate of regulatory approvals for newly processed products is expected to propel the process.
The rise in disposable income is most noticeable in emerging markets, where economic expansion has increased personal wealth. As people's salaries rise, they spend more on convenience and indulgence items, such as processed snacks. With increased disposable income, customers can devote more of their budget to discretionary expenditure, including non-essential products like snacks. This shift in buying patterns helps to expand the processed snack sector. According to the International Monetary Fund, global growth will slow to 2.9% in 2023 before rebounding to 3.1% in 2024.
Furthermore, urbanization is frequently associated with an increase in income levels. As people move to cities for better work possibilities, their lifestyles may become more hectic, creating a greater demand for simple and easily accessible food options. Latin America's middle class has expanded by 50% over the last decade and currently accounts for 30% of the population. According to some estimates, the middle class will account for 43% of the entire population by 2030, more than doubling from 2005. As the middle class grows globally, particularly in Latin America and Southeast Asia, people have more spare income to spend on snacks. As a result of this demographic transition, snack producers focus more on catching the attention of the increasing middle-class consumer base. Furthermore, a growing number of two-income couples with children and parents are seeking processed snacks to reduce cooking time, strengthening the demand for processed snacks market trend.
Many customers are paying more attention to the nutritional value of their meals. Governments and health groups worldwide have adopted legislation requiring more transparent and informative food labeling. For example, in some European nations, the Nutri-Score system is used to visually represent the nutritional content of food goods, affecting consumer decisions. Increased awareness of the worldwide obesity crisis has raised questions regarding the role of processed snacks in contributing to excessive calorie consumption. According to a WHO estimate from 2022, more than one billion people worldwide are obese, including 650 million adults, 340 million adolescents, and 39 million children. The World Health Organization projects that by 2025, roughly 167 million people will become less healthy as a result of being overweight or obese. Hence, Consumers are becoming more attentive to their eating choices, which has reduced demand for unhealthy snacks.
Furthermore, organizations such as the Centers for Disease Control and Prevention (CDC) in the United States and comparable entities in other countries have launched public health campaigns and programs to encourage healthier eating habits. These commercials frequently highlight the negative health consequences of excessive processed food intake, resulting in a shift in consumer attitudes. The popularity of specialized diets, such as low-carb, paleo, or ketogenic diets, has contributed to a decline in standard packaged snacks. Consumers on these diets frequently seek snacks that correspond to their dietary preferences, such as those with lower sugar content or alternative components.
There is an increasing demand for snacks made with health-conscious ingredients. Companies can innovate by combining superfoods, whole grains, and natural sweeteners to improve the nutritional value of their snacks. For example, snacks made with quinoa, chia seeds, or natural sweeteners such as honey or maple syrup. Furthermore, consumers are increasingly willing to try new and unusual flavors. Snack producers can exploit this by developing snacks in exotic or international flavors.
According to a survey by Research and Markets, the millennial and Generation Z populations in India have the most significant desire for clean-label snacks. These consumers are more conscious of the components in their items and are willing to spend a higher price on healthier alternatives. As plant-based diets gain popularity, snack manufacturers can look at plant-based alternatives to traditional snack ingredients. Snacks produced with ingredients like pea protein, lentils, or mushrooms can appeal to a rising market of plant-based eaters. Market data could indicate the growing market share of plant-based snacks.
| Study Period | 2020-2032 | CAGR | 4.7% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD XX Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD XX Billion |
| Largest Market | Asia-Pacific | Fastest Growing Market | North America |
The global processed snacks market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
Asia-Pacific is the most significant global processed snacks market shareholder and is estimated to grow at a CAGR of 4.8% over the forecast period. The regional market's expansion can be ascribed to the robust food processing industry in the area. Furthermore, the increasing number of workers and the expanding presence of women generate a strong demand for convenient food items due to hectic lifestyles. The Asia-Pacific region, known for its rapid growth and dynamic nature, has attracted considerable interest from numerous international participants. This is primarily due to the region's substantial population, increasing purchasing power, evolving consumer preferences, busy lifestyles, and growing health concerns, all of which present significant opportunities for market expansion.
Hence, prominent market participants are significantly enlarging their regional activities using diverse commercial tactics, including mergers and acquisitions, collaborations, and campaigns. In January 2020, DuPont Nutrition & Bioscience, the food and beverage division of DuPont de Nemours, Inc., initiated a snacking campaign called 'Snack it Right.' This campaign centers explicitly on researching consumer trends in the Asia-Pacific region. The company intends to establish a strategic alliance with food manufacturers to exploit the expanding and unexplored markets in the area.
Furthermore, urbanization and the emergence of new family arrangements have contributed to the increase of hectic lifestyles in the Asia-Pacific area. With the ongoing urbanization process, an increasing number of individuals from the Millennial and Generation Z cohorts are relocating to cities in search of job prospects. Based on a projection by UNICEF in 2023, the urbanization rate in Asia is so rapid that almost 55% of the region's population is anticipated to reside in urban areas by 2030. According to the UN-Habitat, the urban population in Asia is projected to increase by 50% by 2050, resulting in the addition of 1.2 billion individuals. Thus, these factors will impact the demand for processed snacks throughout the forecast period.
North America is anticipated to exhibit a CAGR of 4.9% over the forecast period. The processed snacks market in North America is projected to be the second fastest-growing market for processed snacks during the forecast period, following Asia-Pacific. The increasing consumption of convenience food and healthy snacks primarily fuels this growth. Current lifestyles and robust distribution channels for B2B and B2C sales drive the region's demand for ready-to-eat and on-the-go food items.
Additionally, the region is facing a significant health issue with obesity, particularly among the younger population. The high prevalence of obesity in the area has led to a rise in health concerns such as cancer, coronary artery disease, type 2 diabetes, and stroke. According to the Trust for America's Health (TFAH), as of September 21, 2023, 41.9% of adults in the United States are classified as obese. Consequently, people in the area are transitioning towards nutritious dietary practices, prompting food processing companies to provide low-calorie processed snacks. Emerging players in the industry should leverage this trend as a chance to establish a specialized position for themselves.
Europe is expected to occupy a significant portion of the global processed snacks industry, according to processed snacks market insights. Sustainability is a prominent and vital trend in the region, encompassing environmental concerns and food processing. The region's population is shifting its dietary preferences towards more individualized and transparent eating patterns. The growing demand for sustainable production in the area has created new opportunities for manufacturers and exporters involved in the food processing industry to expand their operations and fulfill the increasing demand. The European Snacks Association (ESA) reports that the retail value of the savory snack and snack nut sector in 2021 amounted to almost 30 billion Euros. Europe's largest savory snack market is in the UK, with an estimated value of over 5 billion Euros. Furthermore, the Netherlands, Norway, and Spain have substantial shares in per capita consumption of chips/crisps, savory snacks, and snack nuts. The consumption in these countries surpasses that of the U.K.
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The global processed snacks market is segmented based on source and grade.
The market is further segmented by source into Sweet Snacks and Savory Snacks.
Sweet Snacks accounts for the largest share of the market.
Sweet Snacks
The sweet sector is expected to dominate the global market throughout the forecast period, owing to the growing popularity and consumption of bakery and confectionery items. This area contains diverse products, including cookies, cakes, pastries, chocolates, candies, and other sweets. Sweet foods are frequently indulgent, offering customers a fulfilling and enjoyable experience. Bakery items are in high demand because of their high nutritional content and cost, especially given the rising time restrictions faced by dual-working families. This presents a lucrative opportunity for bakery and confectionary firms to expand their operations to satisfy consumer demand.
Savory Snacks
Savory snacks are a wide variety of non-sweet processed meals designed to satisfy appetites for salty, spicy, or umami qualities. This category contains potato chips, pretzels, almonds, popcorn, crackers, and savory biscuits. Savory snacks are appealing due to their portability and convenience, making them great for on-the-go consumption. This segment's manufacturers prioritize flavor innovation, experimenting with new combinations, and drawing inspiration from worldwide. Furthermore, there is a growing trend toward healthier savory snacks, with alternatives that include whole grains, natural seasonings, and lower sodium content to suit customer desire for more nutritional and mindful snacking options.
By grade, the market can be further bifurcated into B2B and B2C.
B2C generates the most revenue in the market.
B2C
The B2C category is predicted to grow faster throughout the projection period, owing to the widespread availability of processed snack food types at a single location. The B2C segment includes interactions between businesses and individual customers. In the processed food sector, B2C transactions occur when companies sell their products directly to end users via various channels such as retail stores, internet platforms, or vending machines. Hypermarkets and supermarkets generate significant sales and can employ additional growth tactics to increase their consumer base. Furthermore, the exponential rise of e-commerce in developing economies such as India and Brazil is expected to drive market growth in the coming years.
B2B
The business-to-business section refers to transactions and relationships between firms. This refers to the supply chain parts of the snack production process, where manufacturers, wholesalers, and distributors interact. B2B transactions in the processed snack industry may include procuring raw materials, packaging materials, and distribution services. For example, a snack packaging maker may participate in B2B transactions with snack producers to provide them with appropriate packaging solutions. Collaboration between ingredient suppliers and snack manufacturers occurs under the B2B category. Building solid B2B partnerships ensures a seamless and effective supply chain, from ingredient procurement to final product distribution.
The COVID-19 pandemic has brought unprecedented times globally across various industry verticals. The CMMS market has observed a steep downturn on account of the temporary halt of business operations to support stringent regulations. Interestingly, the market has noted an uptick in the healthcare sector due to the increasing need for workload optimization, maintenance planning, and equipment maintenance in combating the pandemic.
The CMMS market is expected to witness a slump during 2020, with disrupted manufacturing, transportation and logistics, retail, and supply chain sectors curtailing growth. New investment areas, including the integration of advanced technologies such as IoT and IIoT, are expected to remain suspended till 2021.The market is expected to gain traction by late 2021 or early 2022 with the return of normalization.
Lower industry output inevitably disturbs the CMMS market. The pandemic’s drastic impact on many business verticals has encouraged organizations to switch from an availability-driven strategy to a cost-driven strategy. This change is expected to pave the way for CMMS adoption for workload optimization, enhanced maintenance, and continuity of training and consultation services among limited industries.
In light of the evolving scenario, companies are introducing products that can tackle changing business needs. In 2020, Spacewell, a leading global CMMS provider, launched new digital solutions to help workplace managers with new and updated digital tools to monitor workforce and inventory and schedules, allocate workloads, and ensure compliance and mitigate short-term disruption. These people-centric tools will also help firms drive performance improvements and improve workplace well-being in the long term post-COVID-19.
