Globally, consumers are eating up savoury snacks
U.S.-based P&S Research has found that the global savoury snacks market is expected to grow to US$166.6 billion by 2020; the market in India is expected to see the highest growth
New York City – Consumers seem to be eating up savoury snacks and according to the results of a recent research report, it looks like the trend is showing no signs of slowing down.
P&S Market Research says its recent research has found that the global
savoury snacks market was valued at US$111.1 billion in 2014.
The market is expected to grow at a compound annual growth rate (CAGR) of 7.1% during 2015 to 2020 and could reach US$166.6 billion by 2020.
The research firm says rising urbanization, increasing per capita income (especially in developing countries) and changing food cultures are the factors contributing to the global growth of savoury snacks.
In the Asia-Pacific region, the high growth of the savoury snacks market is mainly coming from the increasing demand from China and India, as they constitute a large part of the global and regional population.
The savoury snacks market does have its challenges. Healthier alternatives, such as bakery products, fresh fruits and juices, are hindering savoury snacks market growth, says P&S; which is compelling companies to offer healthier snacking options.
The demand for small pack sizes has been increasing considerably in certain countries, such as India and Mexico, due to increasing consumption from lower income groups and demographic changes.
Also, in general consumers are demanding variety in their snacks, which is encouraging companies to launch new products.
Several companies have launched products with new tastes, flavours and shapes to maintain their competitiveness in the market. Moreover, consumers’ increasing inclination towards organic foods is compelling the savoury snack companies to innovate their products to keep their consumers coming back.
Savoury snack segments
P&S segments the savoury snacks market as:
• potato chips;
• processed snacks;
• nuts; and
The processed snacks accounted for the largest share – with a market size of US$41,572.3 million in 2014 – in the global savory snacks market and that segment is expected to grow at a CAGR of 6.5% during 2015 to 2020.
Before, snacks were considered a break-time light food. However, recently consumers have been increasingly eating them between meals. In the U.S., for instance, snacks are often now considered a fourth meal of the day. American consumers also happen to be forerunners amongst the snack eaters between meals as they love to snack everywhere from the theatre, in the workplace, the car and even on the subway. A similar culture exists in Brazil, where snacking is a part of breakfast.
Globally, the savoury snacks market in India is expected to witness the highest growth, 16.6% during the period 2015 to 2020, among all the countries.
The U.K. is the forerunner in snack consumption across Europe. According to a food research company, U.K. consumers snack 825 times a year compared to the 807-times average among European consumers. Consumers age 6 to 24 are the largest savoury snack consumers in the U.K.
The U.K. might lead the savoury snacks market in Europe; however, it is not the largest consumer in terms of per capita consumption. Countries such as The Netherlands, Norway and Spain have a greater per capita consumption of savoury snacks as compared to their British counterparts. According to the European Snacks Association (ESA), the average annual per capita savoury snacks consumption in Europe is about 3.6 kilograms.
The increasing numbers of supermarkets and hypermarkets coupled with growing per capita income is encouraging consumers to purchase savoury snacks in bulk, which is mostly offered by large-scale retail.
Convenience stores are another format which is growing at a global level due to consumers’ growing demand for convenience.
More details from P&S’ research:
Savoury Snacks market share by distribution channel
- Supermarkets/ Hypermarkets
- Independent Retailers
- Convenience Stores
- Service Stations
Savoury Snacks market by region:
- North America
- The U.S.
- South Korea
- Rest of the World (ROW)