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Savory Snacks Market to Witness 7% CAGR during 2015 -2020

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Published Date:   May 2015

The global savory snacks market generated revenue of $111.1 billion in 2014 and is projected to reach $166.6 billion by 2020, demonstrating a CAGR of 7.1% during 2015–2020. The key factors impacting the market advance include the rising urbanization, increasing trend of the consumption of snacks between meals, and growing disposable income.

On the basis of segment, the market has been classified into potato chips, processed snacks, popcorn, nuts, and others, wherein others include bhujia, meat snacks, and pretzels. Of these, processed snacks held the largest share in the market in 2014. This category is also projected to witness the fastest growth, at a CAGR of 7.3%, during the forecast period. This is attributed to the high nutritional value of processed snacks. In addition, in 2014, processed snacks had the largest share in the savory snacks market of numerous countries, such as Germany, Japan, China, South Korea, Mexico, and Brazil.

The global demographics are advancing toward urbanization, owing to the growing industrialization, which is creating the demand for light foods such as savory snacks. The increasing per capita income, coupled with the party culture, is further driving the savory snacks market growth. Theatres and cinema halls are helping in the growing snacking trend during entertainment activities. People in developing countries are switching from traditional homemade snacks to savory snacks.

According to The CityFix, an online learning resource for sustainable urban mobility and planning, the urban population in developed countries, which was about 900 million in 2010, is expected to cross 1 trillion by 2030. The developing countries are expected to witness relatively higher growth in the urban population, from about 2.7 trillion in 2010 to over 3.7 trillion by 2030. Savory snacks companies are also increasing their penetration in the rural areas of developing countries. PepsiCo leads the savory snacks market in rural area penetration, owing to its strong distribution network.

The demand for variety in snacks is impelling companies to launch new products with different taste and flavors. Numerous savory snacks market players are focusing on innovation in their products, in order to attract customers and gain a competitive edge in the market. For instance, in 2014, PepsiCo launched several new savory snacks, including a tube-shaped chip dipping snack, Tostitos Rolls, and a skeleton-shaped snack, Cheetos Bag of Bones. General Mills announced plans to launch 50 new products in January 2015, including a gluten-free snack bar, Food Should Taste Good Real Good Bar. Similarly, in 2013, PepsiCo launched four variants of its sweet and savory bread snack, Stacy’s Bake Shop Bakery Crisps, and French fry-shaped crispy fries under its brand, Ruffles.

The savory snacks market is growing at a moderate rate; however, there are several unorganized companies at the local level, which are increasing their market share and posing a threat to the established companies. The small companies offer their snacks at competitive prices, which increases their chances of flourishing. Due to less expenditure on advertisement and workforce, such companies are able to offer their products at a low price. They maintain strong distribution channels with heavy margins to the retailers in their area of influence. Most of the unorganized players exist in the potato chips and nuts market.

Explore detailed TOC and Scope of the report: https://www.psmarketresearch.com/market-analysis/savory-snacks-market

The global savory snacks market has a fragmented structure with a large number of companies operating in it. Some of the major companies 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.

Savory Snacks Market Segmentation

By segment

  • Potato Chips
  • Processed Snacks
  • Popcorn
  • Nuts
  • Others

By distribution channel

  • Supermarkets/Hypermarkets
  • Independent Retailers
  • Convenience Stores
  • Service Stations
  • Specialists
  • Others

Geographical Segmentation

Savory Snacks market by region:

  • North America
  • Europe
  • Asia-Pacific (APAC)
  • Rest of the World (RoW)