Summary
Major companies in the snack food market include PepsiCo Inc., Conagra Brands Inc., General Mills, McCain Foods Limited, Calbee Inc., The Campbell Soup Company, Kellogg Co, The Kraft Heinz Company, Want Want China Holdings Ltd., and TreeHouse Foods.
The global snack food market grew from $237.65 billion in 2022 to $256.5 billion in 2023 at a compound annual growth rate (CAGR) of 7.9%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The snack food market is expected to grow to $333.12 billion in 2027 at a CAGR of 6.8%.
The snack food market consists of sales of salted, roasted, dried, cooked, or canned nuts; processed grains or seeds into snacks; peanut butter; potato chips, corn chips, popped popcorn, hard pretzels, pork rinds, and other snack food.The companies package and distribute their products through various distribution channels to both individual customers and commercial establishments.
Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
Snack food is a small portion of food eaten between regular meals.
Asia-Pacific was the largest region in the snack food market in 2022.North America was the second-largest region in the snack food market.
The regions covered in the snack food market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The main types of snack food are extruded snacks and non-extruded snacks.Extrusion cooking is a common method for producing snacks made primarily of cereal flour or starches.
Extruded snacks are typically heavy in calories and fat, with little protein and fibre content, and are viewed as undesirable by several consumers. The different flavours include salty, tangy, spicy, and others and are distributed through various channels such as supermarkets, hypermarkets, convenience stores, e-commerce, and others.
Many countries across the globe are experiencing falling prices of crops due to overcapacity.This is expected to result in low raw material costs for food and beverage companies.
For instance, in November 2022, according to the report Frontline, an India-based national magazine on agriculture, the Cabinet Committee on Economic Affairs announced a bailout package of Rs 7000 crore for farmers involved in the sugar production sectors to fix the minimum selling price of refined sugar at Rs 29 per kilogram (prices dropped to Rs 23-24 recently due to overproduction) and to create a buffer stock of 3 million tonnes of sugar for one year.Thus, the overproduction of certain crops is likely to result in higher profit margins for food and beverage companies.
Higher profit margins will enable snack food manufacturing companies to increase their productivity and drive the market going forward.
The outbreak of COVID-19 disease (COVID-19) has acted as a massive restraint on the snack food manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally.COVID-19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty breathing.
The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China, and has spread globally, including Western Europe, North America, and Asia.Food and beverage manufacturers depend on the supply of raw materials from domestic and international suppliers.
As many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to a lack of raw materials.Also, restrictions on the trade of non-essential goods and fear of contamination through manufacturing facilities contributed to the decline.
The outbreak had a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the snack food manufacturing market will recover from the shock over the forecast period as it is a "black swan" event and not related to ongoing or fundamental weaknesses in the market or the global economy.
Snack food manufacturing companies are adopting robotics and automation technology to maximize production efficiency.Robotic systems automate batching, conveying, processing, storage, and packaging of savoury snack products, thus decreasing production cycle time and increasing output.
Automation enables snack processing companies to improve plant conditions, reduce contamination, and operate with minimal human interaction, thus making processing safer for workers as well as consumers.Collaborative robots or semi-autonomous robots are used in various automation processes, including packaging.
Plants with fixed automation systems increase yields by at least 2-3% over manual labor.
The countries covered in the snack food market are Argentina; Australia; Austria; Belgium; Brazil; Canada; Chile; China; Colombia; Czech Republic; Denmark; Egypt; Finland; France; Germany; Hong Kong; India; Indonesia; Ireland; Israel; Italy; Japan; Malaysia; Mexico; Netherlands; New Zealand; Nigeria; Norway; Peru; Philippines; Poland; Portugal; Romania; Russia; Saudi Arabia; Singapore; South Africa; South Korea; Spain; Sweden; Switzerland; Thailand; Turkey; UAE; UK; USA; Venezuela; Vietnam.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
The snack food research report is one of a series of new reports that provides snack food statistics, including snack food industry global market size, regional shares, competitors with snack food share, detailed snack food segments, market trends and opportunities, and any further data you may need to thrive in the snack food industry. This snack food research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
