Snack Market Size and Forecast (2024-2028): Growth Driven by Savory Snacks and Health-Conscious Choice

The snack market is poised for significant growth, with a forecasted increase of USD 332.5 million at a CAGR of 6.79% between 2023 and 2028. Several key factors are driving this growth, including an increasing preference for savory snacks, particularly energy bars, and a rising demand for healthy snack options. Consumers are becoming more inclined to spend on ready-to-eat snacks, with evolving taste preferences and a growing focus on convenience and nutrition. As disposable income rises and lifestyles change, the market is adapting to a diverse range of snack offerings.

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Snack Market Segmentation: Product and Distribution Outlook

• Product Categories:

  • Bakery Products: This segment is set to experience significant growth, driven by increased consumer adoption of bakery items such as bread, cookies, muffins, and pastries. The bakery segment was valued at USD 358.30 billion in 2018, and with new product launches like Deco Food Service’s expanded bakery offerings in September 2021, steady growth is anticipated.
  • Chocolate
  • Savory Snacks
  • Frozen Snacks
  • Others

• Distribution Channels:

  • Offline: Traditional brick-and-mortar stores, including supermarkets and hypermarkets.
  • Online: E-commerce platforms offering convenience and a wider product range.

Regional Market

• North America: North America, particularly the U.S., is expected to contribute significantly to market growth. The demand for savory snacks is increasing, fueled by busy lifestyles and convenience. The bakery product segment is also growing steadily, with more product innovations and a strong retail network.

  • Key Countries: United States, Canada

• Europe: Europe is seeing increased demand for healthier snacks and rising preference for savory snack products. The region’s focus on organic and clean-label snacks is shaping market dynamics.

  • Key Countries: The U.K., Germany, France, Italy, Rest of Europe

• Asia-Pacific (APAC): APAC is forecast to contribute 34% to the market’s growth due to a thriving food retail sector and the demand for on-the-go snacks. Emerging nations like China and India are rapidly adopting packaged snacks and convenient food items.

  • Key Countries: China, India, Japan, Thailand

• Middle East & Africa (MEA): In the MEA region, demand for snacks is growing due to increasing urbanization and changing eating habits.

  • Key Countries: Saudi Arabia, South Africa, Rest of the Middle East & Africa

• South America: South America is also witnessing a surge in snack consumption, driven by rising incomes and urbanization.

  • Key Countries: Brazil, Argentina, Chile

Snack Market Dynamics: Drivers, Trends, and Challenges

• Key Drivers: The growing preference for savory snacks is one of the major market drivers. With hectic work schedules and changing consumer habits, many individuals are opting for quick, convenient food options like savory snacks. The increasing trend of meal replacements further boosts the demand for ready-to-eat snacks.

• Emerging Trends: The trend of replacing meals with snacks is gaining traction, especially in urban settings. This shift is fueled by the fast-paced lifestyles of consumers. Healthy snacking trends, such as reduced sugar, increased protein, and clean-label products, are also emerging as key drivers.

• Challenges: A significant challenge facing the snack market is the rising awareness of health impacts related to high-calorie snack foods. Overconsumption of cheese-based snacks, for example, can contribute to high cholesterol, hypertension, and weight gain. These health concerns may hinder the growth of traditional snack segments, especially in regions where health consciousness is rising.

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Key Companies in the Snack Market

Some of the key companies of the Snack Market are as follows:

• Agthia Group PJSC
• B and G Foods Inc.
• Calbee Inc.
• Conagra Brands Inc.
• Cooperatie Koninklijke Cosun UA
• Deco Food Service
• Ferrero International S.A.
• General Mills Inc.
• Happytizers Pvt Ltd
• Harvest Almond Snacks
• Hormel Foods Corp.
• J and J Snack Foods Corp.
• Kellogg Co.
• Kind LLC
• McCain Foods Ltd.
• Mondelez International Inc.
• Nestle SA
• NutriAsia Inc.
• PepsiCo Inc.
• Popcorn Shed Ltd.
• Rich Products Corp.
• Sargento Foods Inc.
• The Hain Celestial Group Inc.
• The Hershey Co.
• The Kraft Heinz Co.
• Tyson Foods Inc.

Recent Developments:

• September 2021: Deco Food Service expanded its bakery product line globally, catering to growing consumer demand for innovative snack options.
• November 2024: PepsiCo launched a new range of healthier snack products targeting health-conscious consumers, including low-sodium and reduced-calorie alternatives.
• December 2024: Nestle introduced an organic snack line focused on clean-label ingredients, responding to the growing consumer preference for healthier and natural options.