A new report from ResearchAndMarket.com indicates that the global market for savory snacks that was valued at $96 billion in 2016 will reach $138 billion by 2023, growing at a compounded annual growth rate of 7.2 percent. Per the report, the global savory snacks market is largely driven by changing lifestyles that have more disposable income and value increasing food convenience. The rising popularity of innovative products with different types of flavors and organic-based savory products are prominent opportunities.
Challenges to this growth projection could arise from health concerns being raised by consumers, and food ingredient regulations from governments.This product category includes potato chips, extruded snacks, nuts, and seeds, traditional snacks, popcorn, pretzels and meat snacks. Potato chips are highest in demand, followed by popcorn, traditional and nut snacks. The distribution channel is segmented into hypermarkets, supermarkets, convenience stores, departmental stores, specialty stores and online purchases.
The report also states that the global savory snacks market is dominated by North America with 27 percent of total market share, followed by Europe, Asia-Pacific, South America, and Africa. In North America, the U.S. is the largest consumer of savory snacks. Europe is the second largest consumer of savory snacks with the U.K., France, Germany, Spain and Italy being the major consumers.
China and India are not only the largest consumer market in the Asia-Pacific region, but are also the fastest growing market for savory snacks globally. These countries are supported by their large population, rapid urbanization and increasing disposable income.
The report also comments on the competitive landscape of the global savory snacks market. The top ten global players have only one-fifth share of the overall savory snacks market. The local and regional snacks manufacturers cater to area-specific tastes, which are very difficult for global players to capture.
The entry for new players is easy because of the large number of alternatives in the same snacks category, low customer loyalty and high shifting habits in the market. Product launches of innovative flavors, organic and gluten-free products and mergers and acquisitions with local players have been the major business strategies for market growth.
