GLOBAL: Savoury Snacks Market To Keep Growing Strongly – Report

The global savoury snacks market is expected to grow to a size of $138.2bn in value sales by 2020, up from $94.5bn in 2015, according to consumer insight firm Canadean.

The company’s latest report states that the growth – at a compound annual growth rate (CAGR) of 7.9% – is expected to come mainly from developing countries in the Asia-Pacific and Eastern European regions, with CAGRs of 13.7% and 7.3%, respectively. The Latin American region, meanwhile, is expected to register a more moderate CAGR of 3.2%.

Rashmi Mahajan, a Canadean analyst, noted: “Rising urbanisation levels and busier lifestyles are impacting the eating habits of consumers, who are increasingly replacing main meals with more flexible, light, and convenient snacking options. Changing consumer preferences and the growing trend of ‘snackification’, which represents a significant portion of everyday eating routines, is driving the demand for portable and on-the-go formats.”

The report highlights big opportunities in large, populous developing countries with low per capita consumption levels, such as China (0.8 kg of savoury snacks per 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 reveals that the health and wellness trend has impacted the eating habits of consumers in developed markets, who tend to base their snacking choices on nutritional value and quality, and are therefore trading up and spending more on premium varieties. Consumers in emerging countries including Brazil, China and India, on the other hand, mostly base their snack choices on value and experimentation.

Mahajan continues: “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.”

According to Canadean, the global savory snacks market is highly fragmented, with the top five brands holding less than 16% market share. Lay’s, Doritos, Pringles, Cheetos, and Ruffles were the leading brands with the highest market share in 2015.