The savory snack products market, valued at USD 203.9 billion in 2022, is projected to reach USD 263.0 billion by 2027, with a compound annual growth rate (CAGR) of 5.2%. This growth is fueled by shifts in work culture and lifestyles due to the pandemic, leading to heightened consumer demand for savory snacks. Both organized and unorganized players are witnessing a surge in demand, especially in developing countries where local players offer unique flavors catering to specific regions.
Market Dynamics
Drivers: Expansion of Retail Industry
The retail sector serves as a significant sales channel for savory snack products globally. Developed regions like the US, Canada, and the UK boast extensive networks of supermarkets and hypermarkets, while investment in expanding stores in developing nations like India and China further boosts sales opportunities.
Restraints: Health Concerns
Issues surrounding the health impacts of snack consumption, including excessive calories, obesity, and associated diseases, pose challenges to market growth. Ingredients like wheat, corn, vegetable oil, salt, and sugar, along with artificial additives and preservatives, contribute to these health concerns, emphasizing the need for healthier snack options.
Opportunities: Demand for Healthy Snacks
There’s a rising demand for healthier snack alternatives due to increased awareness of nutrition and associated health risks. Changing eating patterns, influenced by globalization and exposure to diverse cultures, drive the need for snacks enriched with essential nutrients, presenting opportunities for innovative product development.
Challenges: Competition from Unorganized Players
Intense competition from unorganized players, particularly in Asian and European regions, poses challenges to market players. Local manufacturers often offer snacks at lower prices with traditional flavors, leveraging their understanding of local tastes and preferences, thereby affecting market dynamics.
Key Players Major players in the global savory snacks market include PepsiCo, Kellogg Co, General Mills Inc, Calbee, ITC LIMITED, Mondelez International, Nestle SA, Grupo Bimbo, Hain Celestial, and Blue Diamond Growers. These players are engaged in strategies to capture diverse consumer segments and expand their presence across regions.
