The Savory Snack Products Market size is estimated to be valued at USD 203.9 billion in 2022 and is projected to reach USD 263.0 billion by 2027, recording a CAGR of 5.2% during the forecast period in terms of value.
The market is driven by shifting consumer preferences to the convenience food or on-the-go food owing to their increasing hectic lifestyle. Furthermore, these savory snack products have emerged as a meal alternative for many working-class populations and college grads. Savory snack products help to quench their hunger without taking any extra breaks during their work and also helps them to restrict themselves for overeating during the mealtime. Therefore, the demand for savory snacks has increased significantly across the globe.
Drivers: Expansion of retail industry globally
The retail sector is one the largest sales channel for savory snack products sales across the globe. Key developed regions like the US, Canada, UK, France, Australia, and others have a large chain of supermarkets & hypermarkets that cater to most of the population. However, deep-pocket players in supermarkets & hypermarkets players are actively investing in these countries to increase their number of stores in several developing nations like India, China, and Brazil.
Restraints: Health issues associated with the consumption of snacks products
These healthy penalties associated with the key ingredients including wheat, corn, and other flours, vegetable oil, salt, sugar, artificial additives, and preservatives of savory snacks pose a serious restraint to the market growth over the forecast period. Frequent consumption of snack products adds excess calories to the body and may lead to massive weight gain and obesity. According to the statistics provided by the Centers For Disease Control and Prevention (CDC), the obesity prevalence in the US was 42.4% during 2017 – 2018. These massive health issues are posing a threat to the savory snacks market across the globe.
Opportunities: Increasing demand for healthy snacks
Inadequate consumption of essential nutrients increases the risk of chronic and cardiovascular diseases, such as hypertension (high blood pressure), cancer, obesity, and diabetes. With globalization and higher exposure to other cultures (especially Western lifestyles), consumers' eating patterns have also changed, increasing snacking among all the age groups.
Challenges: Intense competition from unorganized players
The demand for ready-to-eat snacks has increased due to busy lifestyles and a better standard of living, which in turn is increasing the requirement for high production of savory snack products. The savory snack products market is highly fragmented, especially in the Asian and European regions. Due to this, local snack product manufacturers in these regions prefer low-cost equipment, also hampering their product quality.
These products are sold at lower prices in the local market with local flavors and spices incorporated. The local snack manufacturers are aware of the tastes and food habits of the consumers; therefore, these products experience a better acceptance by the local consumers who generally prefer traditional tastes.
Key players in this market include PepsiCo (US), Kellogg Co (US), General Mills Inc. (US), Calbee (Japan), ITC LIMITED (India), Mondelez International (US), Nestle SA (Switzerland), Grupo Bimbo (Mexico), Hain Celestial (US), and Blue Diamond Growers (US).
