'Snackification' trend drives savoury snack growth
The global market for savoury snacks will rise from US$94.5 billion in 2015 to US$138.2.billion by 2020, according to consumer insight firm Canadean.
The 7.9% rate of growth is expected to be driven mainly by developing countries in the Asia–Pacific and Eastern European regions, with combined annual growth rates (CAGRs) of 13.7% and 7.3%, respectively, while the Latin American region is expected to register a more moderate CAGR of 3.2%.
Urbanisation and busier lifestyles are impacting eating habits, according to Rashmi Mahajan, analyst for Canadean, who said consumers are increasingly replacing main meals with more flexible, light and convenient snacking options. This ‘snackification’ trend, which now represents a significant portion of everyday eating routines, is driving the demand for portable and on-the-go formats.
The market potential is greatest in large, populous developing countries with low per capita consumption levels, such as China (0.8 kg of savoury snacks/person in 2015) and India (1 kg), compared to the high levels of consumption in developed countries such as the US (9.5 kg) and the UK (7 kg).
Canadean’s analysis also reveals the impact of the health and wellness trend on eating habits in developed markets, where consumers tend to base snacking choices on nutritional value and quality, leading to opportunities for premium snack varieties. Consumers in emerging countries — including Brazil, China and India — mostly base their snack choices on value and experimentation.
“Despite the regional differences in snacks consumption, innovation in flavours remains an important differentiating factor globally, as consumers across all ages opt for products offering new and unusual consumption experiences. Examples include nacho chips in papdi chaat flavour in India, maize snacks in a tangy fruit chutney flavour in South Africa, popcorn in strawberry and cream flavour in the UK, and potato chips in chocolate chilli flavour in France,” said Mahajan.
The Canadean report highlights the fragmented nature of the global savoury snacks market, with the top five brands holding less than 16% market share. Lay’s, Doritos, Pringles, Cheetos and Ruffles were the leading brands in 2015.
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