Savoury Snacks Market Could Reach US$138 Billion By 2020

Monday, September 19th, 2016 | 598 Views

Representing a compound annual growth rate (CAGR) of 7.9 percent, the worldwide savoury snacks market is projected to rise from US$94.5 billion in 2015 to US$138.2 billion by 2020, according to consumer insight firm Canadean.

Growth is expected mainly from the Asia-Pacific (13.7 percent) and Eastern European (7.3 percent) regions, while the Latin American region is expected to register a moderate CAGR of 3.2 percent.

“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,” said Rashmi Mahajan, analyst for Canadean.

Large, developing countries with low per capita consumption levels represent opportunities for growth, such as China (0.8 kg of savoury snacks per person in 2015) and India (one kg). This is compared to the high levels of snack consumption in developed countries such as the US (9.5 kg) and the UK (seven kg).

The global savoury snacks market is also highly fragmented, with the top five brands (Lay’s, Doritos, Pringles, Cheetos, and Ruffles) holding less than 16 percent market share in 2015. Bourbon Petit holds a 20 percent market share in Japan, and is one of the major brands in the Asia-Pacific region.

Additionally, the report showed 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. This means consumers in developed countries are spending more on premium varieties of snacks, while consumers in emerging countries like Brazil, China and India mostly base their snack choices on value and experimentation.

Consumers also seek novelty, looking for different and exotic flavours in their snacks. “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,” Mr Mahajan added.