The global savory snack products market is expected to experience significant growth, with a projected increase from USD 203.9 billion in 2022 to USD 263.0 billion by 2027, representing a compound annual growth rate (CAGR) of 5.2% during the forecast period.
Drivers: The expansion of the retail industry worldwide is a key factor driving the sales of savory snack products.
Developed regions such as the US, Canada, UK, France, and Australia have well-established supermarket and hypermarket chains that serve a large portion of the population. Additionally, major players in the retail industry are actively investing in emerging markets like India, China, and Brazil to expand their store networks.
Restraints: Health concerns associated with snack consumption pose a significant challenge to the market's growth.
Savory snacks often contain ingredients such as wheat, corn, vegetable oil, salt, sugar, artificial additives, and preservatives, which can lead to health issues. Regular consumption of snack products can contribute to weight gain, obesity, and related health problems. For instance, statistics from the Centers for Disease Control and Prevention (CDC) indicate that the obesity prevalence in the US was 42.4% during 2017-2018, highlighting the impact of these health issues on the market.
Opportunities: There is a growing demand for healthier snack options among consumers. Insufficient intake of essential
nutrients increases the risk of chronic diseases such as hypertension, cancer, obesity, and diabetes. As global exposure and cultural influences increase, consumers of all age groups are changing their eating habits, leading to increased snacking. This trend presents an opportunity for manufacturers to cater to the demand for healthier snack alternatives.
Challenges: The savory snack products market faces intense competition from unorganized players.
The demand for ready-to-eat snacks has risen due to busier lifestyles and higher living standards, leading to increased production requirements. The market is highly fragmented, particularly in Asia and Europe, with local snack manufacturers relying on low-cost equipment, which can impact product quality. These local players often offer snacks at lower prices, incorporating regional flavors and spices that cater to the preferences of local consumers who prefer traditional tastes.
Key players in the savory snack products market include PepsiCo, Kellogg Co, General Mills Inc., Calbee, ITC Limited, Mondelez International, Nestle SA, Grupo Bimbo, Hain Celestial, and Blue Diamond Growers.
