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The global savory snacks market was valued at $111.1 billion in 2014, and it is projected to reach $166.6 billion by 2020, registering a CAGR of 7.1% during 2015–2020. The major drivers influencing the market growth include rapid industrialization, shifting inclination toward consumption of snacks between meals, and rising per capita income.
Geographically, North America held the largest share in the savory snacks market in 2014. The North American savory snacks demand is primarily driven by taste and health considerations. In addition, changing preferences toward the consumption of healthy snacks is also resulting in the demand for snacks. Consumers are becoming highly selective in making their grocery purchases, which is compelling companies to evaluate the taste profile of their products even more closely than their last observation. Moreover, Asia-Pacific (APAC) is expected to become the market leader by 2019 due to the high CAGR in countries such as Japan, which is a major savory snack consumer, owing to its high urbanization rate and busy lifestyle. The swift urbanization in other Asian countries, such as China and India, is increasing the demand for savory snacks.
Earlier, snacks were considered a light, break-time food. However, in recent times, people have been increasingly consuming them between meals, which is aiding in the progress of the savory snacks market. Snacks are being considered the fourth meal of the day in the U.S. Americans are forerunners amongst those who eat snacks between meals, as they love to snack everywhere, from theaters and workplaces to cars and even subways. A similar culture exists in Brazil, where snacks are a part of breakfast. In addition, the U.K. has been one of the largest consumers of snacks in Europe. British people snack 825 times a year as compared to the 807 times of the European consumers’ average. People in the age group of 6–24 years are the largest savory snack consumers in the U.K.
Many people in developed countries are changing their eating habits and preferring natural and fresh foods over savory snacks. Savory snack manufacturers are including healthier options, such as corn-based snacks, gluten-free snacks, and snacks with less salt, to retain their customers. However, the rapidly growing popularity of fresh and organic foods suggests that they are consumed across meals, thereby posing a threat to the savory snacks market. There have been several campaigns against food products with gluten in North American and European countries, as food products with gluten may aggravate celiac disease. Hence, these campaigns are creating a hindrance for snack products which contain gluten.
The global savory snacks market is highly competitive due to the presence of a large number of players. The key reason for the growth of PepsiCo in the market is its large presence and strong distribution channel across countries. While its strong promotional campaigns and product innovations have been helping it maintain its competency in the developed markets, its extensive distribution channels are helping it in expanding in emerging markets.
Further, the companies in the savory snacks market are concentrating on product launches, mergers and acquisitions, and partnerships, to gain a larger market share. For instance, PepsiCo Inc. has launched a chip-dipping snack, Tostitos Rolls!, under the brand of Tostitos. The snack is tube shaped and ideal for dipping and dunking with dips and spreads. It was planned to be available in the country in 14 oz bags at a retail price of $4.3.
Some of the major competitors in the savory snacks market include PepsiCo Inc., Kraft Foods Group Inc., ConAgra Foods Inc., Calbee Inc., Diamond Foods Inc., General Mills Inc., Intersnack Group GmbH, Lorenz Bahlsen Snack-World Group, Kellogg company, and Orkla ASA.
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