Snacks Market

Market Overview

The global snacks market size was valued at USD 1447.1 billion in 2021 and is projected to reach USD 1948.37 billion by 2030, registering a CAGR of 3.36% from 2022 to 2030. Factors like the rising popularity of convenience foods and increased demand for functional or healthy food drive the market growth.

The lockdowns brought on by the pandemic and the widespread adoption of the "work from home" lifestyle have caused the snack market to grow exponentially over the past two years. Since snack manufacturers are concentrating on product innovations like healthier and organic products, this trend is anticipated to continue during the forecast period. Lockdowns during COVID-19 led to an increase in food consumption at home. Implementations and extensions of the COVID-19 lockdown have given snack products a significant role in homes worldwide. There is a greater desire for "on-the-go indulgence" as more people work from home. Due to the pandemic, which encouraged people to create new eating habits at home over the previous two years, there has been an increased demand for packaged snacks like cookies, chips, noodles, and macaroni.

Due to the ongoing change in consumption habits and preference for healthy food items, the global snacking industry is steadily expanding. Today's consumers seek tasty, quick, and inexpensive snacks that meet their daily nutritional requirements. With improvements in raw material use, processing, and preservation, as well as cutting-edge packaging strategies, the food industry is quickly evolving. This has sparked new ideas and the creation of advanced food options advancing the global snacks market.

Market Dynamics

Global Snacks Market Driver

The rising popularity of Convenience foods

Growing consumer preference for convenience, ready-to-eat foods, and on-the-go snacking is a key factor driving the market expansion for healthy snacks. In a hectic schedule, quick nutrition and a complete feeling are provided by on-the-go products. In contrast to eating a few larger meals throughout the day, about 59 per cent of adults worldwide prefer to eat several smaller meals throughout the day, according to Mondelz International's recently released "state of snacking" report. Customers also consider snacks part of a healthy diet, which they attribute to their predetermined serving sizes. These lightweight, portable packs give you a little energy boost throughout a busy workday. By providing a variety of healthy snack products that meet the expanding demand for on-the-go nutrition, the emerging trend of healthy eating is assisting in the evolution of the snack industry.

Increased demand for functional/healthy food

Consumers' growing demand for functional foods to maintain overall health and lower the risk of some lifestyle-related chronic health conditions is the main factor driving the global market. Consumers are still looking for healthier options in the food department. Retail channels have embraced foods enriched with valuable ingredients like micronutrients, proteins, fibre, organic, plant-based, and clean-label products. The market for healthy snacks is expanding due to the increased marketing of these functional foods for managing weight, enhancing digestive health, and lowering the risk of obesity, diabetes, and cardiovascular diseases.

Global Snacks Market Restraint

Technological and processing challenges

The difficulties manufacturers face when processing these snacks hinder the market for healthy snacks. Consumers pay close attention to a product's texture and crispiness when purchasing any snack. The moisture retention and binding capacity of ingredients affect how the final product feels and are negatively impacted by reducing or removing fats and sugar and adding whole grains. Similar shelf stability and preservation issues arise in the fruit and vegetable snacks market. Without ingredients that support emulsification, stabilisation, and creamy texture, developing clean-label snacks such as additive-free and preservative-free products may also create challenges. It is anticipated that continuing innovations and technological advancements will assist processors in meeting these challenges.

Regional Analysis

According to the region, the market is segmented into North America, Europe; Asia Pacific; Central & South America and Middle East & Africa.

Globally, Asia Pacific held the largest market share. Consumers value flexibility and convenience when it comes to food, and packaged snacks are one of the top winners in this category. Snacks that are packed and ready to eat (RTE) are perfect for grab-and-go consumption. Another trend being seen in this area are snacks with clean labels. As the Asia Pacific region becomes more urban with better-developed urban supermarket outlets, consumers are switching from eating at home to having packaged snacks readily available. They used to buy traditional street snacks from food bikes or trucks. As a result of this infrastructure expansion, consumers are converting from unpackaged to packaged snacks.

Segmental Analysis

The Global Snacks Market is segmented into product, distribution channel, and region.

Based on product, the market is categorized into Frozen & Refrigerated, Fruit, Bakery, Savory Confectionery, Dairy, and Others. Frozen and chilled items dominated the product category. When panicked customers stocked their freezers with longer-shelf goods during the height of the lockdown, frozen goods proved to be a pandemic powerhouse. Sales of frozen foods are still strong compared to levels before the pandemic, despite decreasing consumer anxiety due to the number of new COVID-19 cases. However, savoury snacks are anticipated to have the fastest CAGR during the forecast period. Meat snacks like jerky and dried meat expanded quickly in North America, the Middle East, and Africa. Manufacturers and producers have been forced to react to consumers' growing interest in health and well being by providing various low-fat, low-calorie, and gluten-free products.

Distribution channels segment the market into Supermarkets & Hypermarkets, Convenience Stores, Online, and Others. Supermarkets and hypermarkets accounted for most of the global snacks market. Supermarkets and hypermarkets are the primary sources of snack food in many high-income nations. For instance, a non-profit organisation in the US called the Institute for Local Self-Reliance found that Walmart controls more than 50% of grocery sales in the country. However, growing retail infrastructure and the ensuing rise in supermarkets and hypermarkets in urban areas is driving the market growth.

Recent Developments

• In February 2022: Nestlé Health Science has acquired the majority of Orgain's shares. Nestlé Health Science has agreed to acquire a majority stake in Orgain, a leader in plant-based nutrition, from the company's founder, Dr. Andrew Abraham, and Butterfly Equity. Dr. Abraham and Butterfly Equity will continue to hold minority shares. Orgain complements the existing Nestlé Health Science nutrition products that promote healthier lives.
• In April 2022: Pepsi® Brought its New Nitro Pepsi™ Cola to Yankee Stadium by Giving Away One of the Smoothest Game Day Experiences in Baseball with an Exclusive Suite Experience. Pepsi celebrated the return of all those moments to Yankee Stadium with its smoothest innovation yet: the first-ever nitrogen-infused cola, Nitro Pepsi.
• In June 2022: Kellogg's® Special K® Introduced Delicious And Convenient New Protein Snack Bars For Fueling Up On The Go. Kellogg's® Special K® now offers Protein Snack Bars. With 6 grammes of protein and 90 calories per bar, they make it easy to refuel on the go with something tasty; for those times when you need to refuel and take a moment for yourself.