Snack Food Market Trend, Growth to 2022-2030 (2024)

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Market Overview

The global snack food market was size valued at USD 439.22 billion in 2021. It is projected to reach USD 611.75 billion by 2030, growing at a CAGR of 3.75% during the forecast period (2022-2030).

A snack is a food serving that is often smaller than a meal and is typically consumed between meals. Snacks can be created at home from fresh ingredients, or they can be purchased packaged and processed. Snacks are typically made with things that are found in the house. Snacks are frequently leftovers, cold-cut sandwiches, nuts, fruit, and the like. With the paradigm shift in consumer behavior, snack food has become an alternative to full-fledged meals. Additionally, consumers choose snacks that adhere to their dietary requirements, such as kosher-certified, lactose-free, fat-free, gluten-free, and vegan-certified. The Kettle Style Avocado Oil Potato Chips from Good Health Inc. are produced entirely of avocado oil.

Market Dynamics

Global Snack Food Market Drivers

Growing Demand for Convenient and Healthy on-the-go Snacking

Consumers choose quick-to-eat foods on the go due to changing lifestyles, which impacts per capita spending on savory snack goods. More extended workdays and busier lifestyles have caused customers to switch from expensive luncheons and meals to desk snacks and packaged foods, increasing snack sales. In affluent economies like the United States and the United Kingdom, savory snack spending per person is increasing. Customers are also encouraged to buy savory snack goods due to the simple accessibility of a wide range of snack items and the expanding strength of critical companies' global distribution networks. As a result, this continues to be a factor that encourages people to purchase snacks.

The development of "low-sodium" healthful chips and those baked rather than fried raise their appeal among health-conscious customers, illustrating a broader consumer base leading to increased spending on savory snacks. A baked chip typically has 110 to 140 calories and 2.5 to 6 g of fat, compared to a fried chip's 150 calories and 9 g of fat, 2.5 g of which are saturated fat. For instance, the healthiest potato chips Frito-Lay offers are Lay's Oven Baked Original potato chips.

Global Snack Food Market Restraint

Rising Demand for Fresh Fruits as Snacks

Many unorganized firms have a sizable market share in the global snack food market. The organized sector faces fierce competition from the unorganized sector, which does not pay taxes. Due to the regional specificity of ethnic foods, the market is flooded with tiny vendors. These players typically only offer products from one category, have a small product portfolio, and frequently only offer conventional snack foods. Additionally, they only operate in a single state or city, a narrow geographic area. In addition, there are numerous suppliers of fresh goods in the chip and conventional snack sectors. Industry sources asserted that price is more critical to economically disadvantaged people than brand recognition and quality.

Challenges arising across economies at various stages of development are not universal. The more developed economies—those in North America and Europe—will require more investment and human resources in the value chains' skill- and technology-intensive portions as the pressure from fading cost advantages mounts. However, to promote links and integrate into value chains, the less developed economies, like those in Asia and South America, may need to solve more fundamental problems, such as inadequate infrastructure.

Global Snack Food Market Opportunities

Increasing Demand for Dairy-Based Snacks

The market for dairy snack foods is expanding as a result of rising consumer health consciousness, the appearance of health issues brought on by sedentary lifestyles and the shift from supplements to fortified dairy products. Manufacturers have developed variations in the global snack food market, including low-fat, calcium-rich, and lactose-free versions, resulting from this shifting trend. Dairy snacks are also becoming increasingly popular, especially with the working class, teenagers, and bachelors. Chips, candy, and snack mixes are just a few everyday snack items high in calories, fat, and added sugar. Dairy snacks are an easy-to-grab healthy alternative that is nutrient-dense and gives the body the vitamins, minerals, and energy it needs.

Customers' milk consumption patterns have altered, and there is now a greater demand for milk-based products with a broader range of flavors and fortified components. The strong demand for real cheese has driven the dairy snack industry. Cheese has become a well-liked dairy snacking product in the market due to shifting customer perceptions about it as a healthy, protein-rich alternative to processed snacks. Diverse types of cheese with different flavor characteristics have been introduced due to the use of cheese in packaged snack food alternatives.

Regional Analysis

The global snack food market is divided into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global snacks market and is anticipated to grow at a CAGR of 5.10% during the projection period. The Chinese snack food market's steady growth is anticipated to continue to rise during the projection period, primarily due to product innovation and the growing popularity of healthy snacks. The demand for meat-based snacks in the market under study is driven by the growing need for on-the-go munching with added nutritional value. In addition, products' more excellent protein and lower fat and carbohydrate contents increase demand among athletes and fitness enthusiasts. Since the decades, sales of frozen dairy snacks, particularly yogurts, have exploded, which is anticipated to help the snacks market grow.

North America is anticipated to grow at a CAGR of 2.70%, generating USD 164.77 billion during the forecast period. Due to their fast-paced lifestyle, the United States, one of the most developed countries, is seeing an increase in the demand for convenient and healthy snack foods. According to the United States Department of Agriculture (USDA), Americans spend more than half of their food expenditure on prepared foods in search of conveniences like quick and small meals. In 2017, cooperative Welch's ran a poll in which 92% of millennials admitted to substituting snacks for meals. The research shows the nation's rising consumer preference for quick meals and snacks.

Instead of calorie tracking, British consumers prefer snacks with great nutritional value and short ingredient lists. Due to the low sugar level of the items, rapid growth is anticipated for low-calorie frozen yogurt, ice creams, and other snack foods. Demand is anticipated to increase throughout the projection period due to consumers' preference for foods that are high in protein or fiber, have no/little sugar, or have undergone minimal processing. Each tub of ice cream has more than 20g of protein and only 310 calories compared to other types of classic ice cream. The nationwide Lidl retail company sells this in the flavors of salted caramel and white chocolate with raspberry ripple.

Brazil is a crucial player in creating healthy snacks in South America due to its growing nutritional consciousness and aging population. Brazilians choose expensive, healthy snacks over traditional alternatives thanks to rising disposable income and living standards. Brazilians are evaluating the appearance, taste, crispiness, color, shelf life, and even the appearance of the container of different brands of snacks to determine how competitively priced they are. The need for ergonomic, simple-to-open, and convenient on-the-go snacks among Brazilian consumers is rising. Furthermore, people are unwilling to give up their desire for practical and nutritious things. The market for snack bars, which are already a staple of the nation's traditional snack diet, is therefore anticipated to grow due to this issue.

Segmental Analysis

The global snack food market is segmented by type and distribution channel.

Based on Type, the global snack food market is bifurcated into frozen snacks, savory snacks, fruit snacks, confectionery snacks, bakery snacks, and others.

The savory snacks segment owns the highest market share and is anticipated to grow at a CAGR of 2.90% over the forecast period. The presence of multiple brands and players catering to various product portfolios, such as nuts, seeds, trail mixes, potato chips, tortilla chips, puffed chips, savory biscuits, popcorn, and pretzels, made this market segment a highly competitive one. Pretzels and popcorn are also included in this category. In addition, the savory popcorn snack market has joined the "guilt-free snacking" area since the introduction of healthier product forms. These healthier versions have lower amounts of sodium and fat when compared to the classic varieties, despite the claim being broken down into several different ranges within this category.

The only frozen snacks considered in this category are ice cream, frozen desserts, and yogurt. Yogurts topped with granola, fruit, and almonds are becoming increasingly popular as a low-fat alternative to traditional meals. In addition, the spoonable yogurt sector has a smooth texture and is offered in a semi-solid shape, making it simple to consume for customers of all ages and genders. In light of these considerations, participants in the researched market have been developing various flavorful and healthful solutions to satisfy customers' tastes. In addition, businesses have been concentrating on broadening the range of products they offer to satisfy the rising demand.

Fruit snacks typically contain dried fruits, fruit flavor, fruit extracts, and fruit powders as their primary raw materials (ingredients). It is projected that the desire for dried fruits will rise over the next several years as more people become aware of their nutritional advantages. Therefore, participants deliberately come together to create an alliance to integrate their supply chain into the market. Nim's fruit crisps formed partnerships with fruit farms in Colombia in 2018, aiming to improve the product's quality and consistency to meet the ever-increasing demand. Moreover, due to their rich vitamin and mineral content, high amounts of boron, iron, potassium, calcium, and fiber, and antioxidant properties, there is a surge in demand for organic dried fruits.

Based on Distribution Channels, the global snack food market is bifurcated into supermarkets, convenience stores, and others.

The supermarkets/hypermarkets segment is the highest contributor and is expected to grow at a CAGR of 3.65% during the forecast period. Supermarkets and hypermarkets are the world's most popular outlets for selling snack food due to their enormous retail space and ability to cater to a wide range of consumer preferences. Expanding different supermarket/hypermarket chains into underdeveloped nations like Moldova, Ukraine, Albania, Bosnia and Herzegovina, Macedonia, and other nations is also boosting the sales of the snacks market in general. The global snacks market has been dramatically impacted by factors including corporate growth and the increase in the number of supermarkets and hypermarkets.

Customers in emerging and underdeveloped nations favor convenience stores as their preferred sales channel for products like ice cream, chips, cakes, and other snacks. Convenience stores also provide customers with excellent service and affordable costs. 7-Eleven (24/7) has implemented self-service checkouts and more straightforward vending machines that sell bakery and other frozen dessert products such as cakes, muffins, waffles, and ice cream to give customers more convenience. Convenience stores are one of the product's viable distribution channels because people increasingly seek out fresh foods and accept them. Deals and promotional pricing are two primary methods for selling snack food items in convenience stores.

The COVID-19 pandemic sparked the modest but burgeoning internet retail firm, which has since significantly expanded. Despite its small size, it has a promising future within the next five years. The primary factor driving the increase in sales through online retail is the ease with which consumers can select their chosen brands and find a wide variety of flavors and product options. Online sellers were forced to improve the purchasing processes in terms of security and reliability due to the growth potential for snack sales through digital portals, which increased demand for these products. Vendors also embrace online retail techniques to boost their profits and expand their geographic reach, such as forming agreements with various online retailers.

Market Size By Type

Recent Developments

• August 2022- Doritos—the famous triangle-shaped chip brand—is elevating the simple triangle to another Level ®TM. Triangle trackers will soon understand how frequently they encounter triangles in daily life thanks to the weekly TikTok challenges and the Snapchat AR lens that turns any real-world triangle into Doritos.
• October 2022- Quality Street, one of Nestlé's most well-known confectionery brands in the UK and worldwide, uses recyclable FSC-certified paper packaging. With the historic switch from dual foil and cellulose to recyclable paper wrappers, Quality Street will eliminate nearly 2.5 billion separate pieces of packaging from its global supply chain.

Top Key Players