Processed Snacks Market Gaining Momentum :Projected to Grow at a CAGR of 4.2% During 2021-2026
Published | March 2021
A study recently conducted by the strategic consulting
and market research firm, BlueWeave Consulting revealed that the global processed snacks market was worth USD 390.3
billion in 2020 and is projected to reach USD 493.8 billion by 2026.
One of the major factors driving the global market for processed snacks has been the shift in consumer eating habits. Processed snacks are usually more compact and less perishable than prepared foods. Moreover, other than preservatives and sweeteners, packaged snacks typically contain appealing ingredients such as special flavors, peanuts, and chocolates, which make them ideal to be eaten at any time of the day. Since consumers are opting for healthy ingredients such as high-fiber, protein, and whole-grain snacks, the growth of the processed snacks market in the forecast period is likely to accelerate with the growing demand for healthy snacks.
Changing lifestyle driving the growth of the global processed snacks market
Owing to the increasing trend in urbanization, more people are getting employed, which in turn is impacting their work-life balance. The need for work-life balance and pre-packaged snacks that involve little to no kitchen-time leads customers to surprising new breakfast, lunch, and dinner options. Currently, the demand for processed snacks containing harmful additives is going down as people are becoming more health and wellness-conscious. On the other hand, the demand for organic processed snacks is on the rise as they are additive-free. Organic alternatives to traditional processed snacks are, therefore, propelling the market growth.
Ease of Availability of Raw Materials
Raw materials for processed snacks such as fruits, vegetables, grains, flour, etc., are easily available in the market, thus, boosting the manufacturing process of processed snacks and propelling the market growth. According to the United States Department of Agriculture, from 2018 to 2019, soybean production went up by 13%, which represents 8% of the total US soybean production. This is a key factor boosting the production of processed snacks, thereby propelling the market growth.
It is the R&D department that picks the right raw materials depending on functionality. Here functionality denotes multiple factors, such as preservatives for extending shelf life, organoleptic properties of food (color, taste, texture, and aroma), product-safety characteristics and offering the finished product with specific characteristics (thickeners, binders, etc).
The chocolate segment occupies the largest share of the processed snacks market
In 2020, the chocolate segment dominated the global processed snacks market due to the increase in demand and popularity for dark and organic chocolates among youngsters. Furthermore, 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. Regardless of their economic condition, children, as well as adults, prefer purchasing chocolates as chocolates drive impulsive purchasing and are associated with rewards and cheerful moments, which in turn propels the market growth.
Global Processed Snacks Market: Regional Insights
Based on region, the processed snacks market is segmented into- North America, Europe, Asia Pacific, Latin America, Middle East, and Africa.
With a share of over 35%, North America dominated the processed snacks market in 2020. Over the last few years, the packaged snacks market has expanded rapidly. In North America, considering the large customer base of the country, the United States remains the largest consumer of processed snacks. The growth of the processed snacks market in this country is driven by a growing population and strong economic growth coupled with an increasing preference for comfort, protein, and healthy eating.
Additionally, the Asia-Pacific is likely to catch up as the fastest-growing region in the processed snacks market due to the heavy presence of food processing units in APAC countries.
The leading players 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 players are majorly focusing on expanding their manufacturing facilities and partnerships.
For Instance, In February 2021Rockstar Energy aired its first-ever Super Bowl ad and reintroduced the brand after PepsiCo acquired the energy drink brand last year for USD 3.85 billion. The new ad featured rapper Lil Baby and first responders. The energy drink brand is also rolling out new packaging with an updated logo and plans to launch new flavors later this year.
Don’t miss the business opportunity of the processed snacks market. Consult our analysts and gain crucial insights to facilitate your business growth.
The in-depth analysis of the report provides detailed information about the growth potential, upcoming trends, and statistics of the global processed snacks market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the processed snacks market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides all-inclusive Market Intelligence (MI) Solutions to businesses regarding various products and services online & offline. We offer comprehensive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solutions. BWC has built its reputation from the scratches by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.