Driven by increasing urbanization levels and growing demand from developing countries, the global market for savory snacks is expected to grow from US$94.5 billion in 2015 to US$138.2 billion by 2020, representing a compound annual growth rate (CAGR) of 7.9 percent, according to new market data from Canadean.
According to the report, growth is expected to come mainly from developing countries in the Asia-Pacific and Eastern European regions, with CAGRs of 13.7 percent and 7.3 percent, respectively, while the Latin American region is expected to register a more moderate CAGR of 3.2 percent.
The health and wellness trend has impacted the eating habits of consumers in developed markets, who tend to base their snacking choices on nutritional value and quality. What’s more, consumers are trading up and spending more on premium varieties of snacks, while consumers in emerging countries including Brazil, China and India, typically base their snack choices on value and experimentation.
“Rising urbanization levels and busier lifestyles are impacting the eating habits of consumers, who are increasingly replacing main meals with more flexible, light, and convenient snacking options," said Rashmi Mahajan, analyst for Canadean. “Changing consumer preferences and the growing trend of ‘snackification’, which represents a significant portion of everyday eating routines, is driving the demand for portable and on-the-go formats."
The global savory snacks market is highly fragmented with the top five brands holding less than 16 percent of the combined market share. However, large opportunities exist in large, populous developing countries with low per-capita consumption levels, such as China and India, compared to the high levels of consumption in developed countries such as the United States and the United Kingdom.
In the Eastern European region, Russia is the largest market for savory snacks products in value terms, and is expected to grow at a CAGR of 10 percent during 2015-2020. Compared to other regions, private-label brands have a strong presence in Western Europe and North America.
Looking for insight into the top snack categories and how the “functional food" space is crossing over into the snack aisle? Join us for the Bite Sized Satisfaction: Snacking to Better Health panel discussion on Friday, Oct. 7, at SupplySide West 2016. Savory snacks also will be recognized during the 5th Annual SupplySide CPG Editor's Choice Awards that recognize some of the coolest new launches of consumer packaged goods (CPG) products across more than 20 categories. Check out the Image Gallery: Salty Snacks Finalists for 2016 SupplySide CPG Editor’s Choice Awards.