Processed Snacks Market- Industry Trends & Forecast Report 2026
The global processed snacks market was worth USD 390.3
billion in 2020 and is further projected to reach USD 493.8 billion by 2026,
growing at a CAGR of 4.2% during 2021-2027 (forecast period).
The shift in consumer eating habits is one of the
major factors driving the market for processed snacks around the world.
Processed snacks are more compact and less perishable than prepared foods. Other
than preservatives and sweeteners, packaged snacks typically contain appealing
ingredients such as peanuts, honey, dry fruits, and chocolates, allowing them
to be relished any time of the day. Thus, processed snacks are gaining an edge
over prepared foods.
Health and wellness-conscious consumers nowadays are
turning to healthier snacks to avoid excessive calories, trans-fats, sugar,
sodium, and other refined ingredients. Therefore, packaged snack vendors are
coming up with vegan and plant-based snacks with high-protein content and low
calories to cater to the taste of their health-conscious consumers.
Source: BlueWeave Consulting
Processed Snacks Market Forecast and Trends
One of the major factors driving the market for
packaged snacks around the world have been the shift in consumer lifestyle. As
there is an increasing trend in urbanization, more people are getting employed,
which in turn is impacting their work-life balance. Therefore, processed snacks
are usually designed to be more compact and less perishable than prepared foods
to help consumers suppress their appetite in between the work. According to the
World Bank, around 3.49 billion people were employed in 2020, which in turn
increased the demand for the processed snacks.
Moreover, changes in lifestyle and consumer taste are
also transforming the way they shop for food and drinks and consume them. This
is particularly true for Millennials as they prefer fresh and experiential snacks of various flavors, textures, and ingredients. The Millennials are also more
inclined towards consuming sustainable and organic processed food.
Marketing and Promotional Campaigns
Processed snack manufacturers invest a huge amount in
their promotional and marketing campaigns to attract the younger generation. For
instance, McCain launched a USD 3.03 million campaign portraying the power of
chips to unify families. It launched its "We are family" series featuring
families from around the UK at the dinner table as they discuss Brexit. This
unique concept helped the brand gain the attraction of youngsters towards McCain
Kellogg’s Company has introduced new products in
ethnic flavors such as Thandai Badam and Rose-Badam cornflakes. What’s more,
the brand also brought Indian celebrity chef Ranveer Brar on-board to whip up
Moreover, in 2018, the company introduced granola with
almonds and cranberries to their portfolio to appeal to palettes that are more inclined
towards Western breakfast and snacking patterns. At different price points,
such as Chocos Fill (center-filled pillows) that start at INR 20, Kellog’s has
launched products in different formats and sizes and started vigorous sampling
exercises to increase penetration, which in turn is boosting the growth of
processed snacks market.
Concerns Associated with Processed Snacks
The rising number of health issues caused by the consumption
of processed snacks has been hindering the growth of the industry. Moreover, the
growing adoption of healthy eating habits are limiting the inclusion of
processed snacks such as potato chips in consumers’ daily list of eatables.
A five-year study of over 100,000 individuals
conducted by the World Health Organization revealed that every 10% increase in
ultra-processed snack intake was associated with a 12% higher cancer risk.
Unhealthy amounts of added sugar, sodium, and fat are also an integral part of
highly processed snacks. These ingredients, no doubt, enhance the flavor of the
snack we consume but also contribute to severe health problems such as obesity,
heart disease, high blood pressure, and diabetes, which in turn inhibit the
growth of the processed snacks market.
of COVID-19 on industry
In 2020, the outbreak of Coronavirus disease
(COVID-19) served as a major constraint on the processed snacks market as
supply chains were disrupted due to trade restrictions and reduced demand due
to lockdowns imposed by governments worldwide.
Processed snack manufacturers are solely dependent on
the availability of raw materials from domestic and foreign suppliers. As
several governments limited the flow of products across countries during the
lockdown phase, factories had to stop production due to the lack of raw
materials. Additionally, trade restrictions imposed on non-essential products
and fear of contamination by manufacturing facilities also led to a decline in
production. It is envisaged that the epidemic would continue to have a
detrimental effect on companies in 2021.
Higher profit margins would allow companies producing
snack foods to improve their production and push the market forward. COVID-19
has contributed to limitations on the movement of staff, shifts in the market
demand, the closing of snack manufacturing facilities, limited food trade
policies and financial strains in the supply chain of processed snacks.
Unprecedented strains have been imposed on food supply chains by the COVID-19
pandemic, with bottlenecks in farm labor, manufacturing, transportation and
logistics, as well as momentous demand changes
Processed Snacks Market- By Product
Based on product, the market is segmented into- potato
chips, extruded snacks, nuts & seeds, popcorn, pretzels, chocolates, sweet
biscuits, snack bars, sweet baked, fruit snacks, meat snacks, and others. In
2020, the chocolate segment dominated the global processed snacks market due to
the increasing demand and popularity of dark and organic chocolates among
youngsters. The chocolate segment is likely to maintain its sustainability
during the forecast period. Additionally, consumers' impulsive buying behavior is
boosting the sales of chocolates around the world.
Processed Snacks Market- By Distribution Channel
Based on Distribution Channel, the market is segmented
into hypermarkets/ supermarkets, independent retailers, convenience stores,
service stations, and others. Due to the existence of numerous supermarkets and
hypermarkets, this segment held a significant share in the processed snacks
market in 2020. It can be due to the availability of multiple types of processed
snacks at a single location. The rising income level and increasing millennial
population are also contributing to the growth of this segment. The growth
can also be attributed to businesses rearranging their operations to recover from
the effects of COVID-19.
Global Processed Snacks Market-
With a share of over 35%, North America held the
largest share in the processed snacks market in 2020. In North America,
considering the large customer base of the country, the US remains the largest
consumer of processed snacks. The market growth in this country is driven by a
growing population and strong economic growth coupled with an increasing
preference for comfort, protein, and healthy eating.
The Asia-Pacific will also
catch up as the fastest-growing region in the processed snacks market due to
the heavy presence of food processing units in APAC countries.
Source: BlueWeave Consulting
Some of the leading companies in the processed snacks
market are PepsiCo, Tyson Foods, Kraft Heinz Company, Kellogg Company, Conagra
Brands, Hormel Foods Corporation, Unilever PLC, Calbee Corporation, and Nestlé.
These companies mainly focus on improving their
product quality by investing in R&D coupled with technological advancement
to strengthen their product portfolio in the market.
PepsiCo is one of the most famous brands in the world known
for its beverages. The company also has some of the most famous snack brands
under its umbrella, including Frito-Lay, Doritos, Stacy’s, Cheetos, Cracker
Jack, Funyuns, and Cap’n Crunch,
Feb 2021: PepsiCo launched Frutly juice waters made from fruit juice, water, and electrolytes for teenagers. The company said there are no added sugar or
sweeteners in the drink. The drink available in strawberry kiwi, fruit punch,
and apple grape flavor will be available from March.
Feb 2021: Nestlé announced its plan to launch Vegan Kitkat in several markets
around the world. The vegan Kitkat developed by Nestlé’s experts at
Confectionery Research & Development Center in York, UK, will be known as
Scope of the Report
Base Year- 2021
Revenue in USD Billion
Germany, UK, France, Netherlands, Sweden, Japan, China, India, Australia,
Mexico, Brazil, South Africa, Saudi Arabia, and others
Product/ Service segmentation
By product, By
Distribution Channel, By region
International, Unilever plc, Calbee Corporation, and Nestlé
By Distribution Channel
Middle East and Africa