Processed snacks: Key market research findings
- The Americas to dominate the market geographically
- Extruded snacks to account for a majority of the market’s revenue
- Key vendors – Calbee Foods, Intersnack, Kellogg, and PepsiCo
Technavio’s market research analysts predict the global processed snacks market to grow at a CAGR of around 5% between 2016 and 2020. The market’s growth can be accredited to the wide reach that organized retailing brings about. The retail sector in many developing countries is experiencing growth of organized retailers with the establishment of supermarkets, hypermarkets, and specialty stores. Organized retailers provide a large number of products under the same roof, which allows consumers to save time and also offers consumers a variety of choices. Processed snacks are primarily sold by large organized retailers, signifying the heavy reliance of vendors on large organized retailers. During 2015, the Americas dominated the global processed snacks market with a market share of around 47%. Busy working schedules and limited spending capacities are persuading consumers in the region to delay meals or skip meals; thus, contributing to growth in the processed snacks market in the Americas.
The new market research report from Technavio presents a breakdown and analysis of the processed snacks segments based on the type.
“Vendors in the market have started emphasizing greatly on innovative packaging. Innovations are made in terms of biodegradable packaging, compostable packaging, and packaging customized to a particular shape and size of the food product to draw consumer interest. Customized packaging is successful in stimulating the customers’ curiosity, spurring in an increase in the demand for that particular brand. Processed snacks usually have a three-layer packaging as it helps in marinating flavors and color of the content packed; thus enhancing shelf life and protecting the food from moisture and air,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
By 2020, the extruded snacks segment will continue its dominance over the global processed snacks market with almost a 69% share of the market’s revenue. Extruded snacks are available in different size, shapes, and colors. Their appearance and packaging are the key differentiators for consumers. Use of a wide range of ingredients in the production of extruded snacks plays a vital role in the growth of the segment. Some of the main ingredients used in extruded snacks include corn, wheat, rice, potato, tapioca, and oats.
The prominent players in the global processed snacks market comprise of Calbee Foods, Intersnack Group, Kellogg, and PepsiCo. The global processed snacks market is highly fragmented owing to the presence of several international and regional suppliers. Vendor performance in the global processed snacks market may be affected by the evolving customer spending pattern. These vendors compete on the basis of numerous factors including pricing, quality, product differentiation, distribution, and promotion. The report predicts that intense competition and rapid technological changes will result in intense vendor competition during the forecast period.
A more detailed analysis is available in the Technavio report, Global Processed Snacks Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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