Global Snacks Market Size, Share, Growth Analysis, By Type(Frozen & Refrigerated, Fruit), By Distribution channel(Supermarkets & Hypermarkets, Convenience Stores) - Industry Forecast 2022-2028

Global snacks market is segmented based on the type, distribution channel, and region. Based on type, global snacks market is segmented frozen & refrigerated, fruit, bakery, savory, confectionery, dairy, others. Based on distribution channel, it is segmented into supermarkets & hypermarkets, convenience stores, online and others. Based on region, it is categorized into North America, Europe, Asia-Pacific, Latin America, and MEA.

Analysis by Type

Frozen and refrigerated dominated the product category in 2021. When scared consumers loaded their freezers with longer-shelf items at the height of the lockdown, frozen foods proved to be a pandemic powerhouse in 2020. Sales of frozen foods are still robust when compared to levels before to the pandemic, despite decreasing consumer anxiety as the number of new COVID-19 cases.

Over the forecast period, savoury snacks are anticipated to have the quickest CAGR. Beef snacks like jerky and dried meat expanded quickly in North America as well as the Middle East and Africa. Manufacturers and producers have been forced to react to consumers' growing interest in health and wellness by providing a variety of low-fat, low-calorie, and gluten-free products.

Analysis by Distribution Channel

In 2021, supermarkets and hypermarkets dominated the global snacks market. Supermarkets and hypermarkets are the main sources of snack food in many high-income nations. Increasing retail infrastructure and the ensuing rise in the number of supermarkets and hypermarkets in metropolitan areas across Asia, the Middle East and Africa are driving market expansion. Furthermore, the availability of a wide variety of product options in hypermarkets and supermarkets is anticipated to fuel the segment's expansion in the coming years.

Online segment is expected to hold a high growth rate during the forecast period. Successful e-commerce companies have begun purchasing or building physical supermarkets recently, such as JD.com in China and Amazon in the United States. To bring some of their digital efficiency to their new brick-and-mortar locations, internet firms are testing out new automation techniques. Brick and mortar stores will need to change as more consumers shop online, especially by making shopping less of a chore and more of a fun pastime. Partnerships between companies that provide online meal delivery services and producers of ready-to-eat foods are also fostering the growth of the snack market.

Asia Pacific dominated the global snacks market with a share of 34.3% of global value during 2021. Consumers prefer flexibility and convenience when it comes to eating, and packaged snacks are one of the top winners in this area. Snacks that are packaged and ready to eat (RTE) are perfect for grab-and-go consumption. For instance, customers in China, where snacks are frequently consumed as a fast fix for regular meals, are starting to place a higher value on wellbeing. As a result, the market for healthy snack alternatives is growing. Another trend being seen in this area is snacks with clean labels. As the Asia Pacific region becomes increasingly urban with better-developed urban grocery outlets, consumers are switching from dining at home and buying traditional street snacks from food bikes or truck to having packaged snacks easily available.

Due to rising demand from India and China, two emerging nations, the Asia-Pacific region is also home to the fastest-growing snacks market items. Urbanization and the spread of Western eating habits have made it easier for multinational corporations to enter the developing countries of the Asia-Pacific region. Over the research period, the Chinese snack food market had steady expansion, and during the projected period, more growth is anticipated. Furthermore, savoury snacks and other meal-replacing snacks like frozen and refrigerated goods are anticipated to continue popular. Big businesses are drawn to snacking categories and are purchasing smaller snacking companies in order to preserve their competitive edge. Even dairy and staples firms are aiming to capitalise on consumers' snacking habits with products like easy-to-eat and beautifully packaged yoghurts and multi-compartment packs.

Driver

• The need for a range of snacking alternatives has increased due to rising health concerns throughout the world as well as changing lifestyles and eating habits. Increasing displacement of meals with snacks and the rise in demand for vegan and allergen-free snacks are also key trends driving the business.
• As consumers' consumption patterns have gradually but steadily altered, they have shifted their attention away from flavour and more animal protein and toward a wider range of product qualities. To maintain a healthy, balanced diet, consumers are looking for a combination of processed and fresh goods. The demand for functional snacks is rising, and young demographic customers' requirements and expectations are changing quickly.
• Due to the metabolic advantages of healthy products like granola bars and veggies and fruit chips, consumers all over the world are becoming more aware of their snacking behaviours. The market for healthy snack options is anticipated to see growth over the course of the forecast period as a result of the rising demand for foods that support weight management as a result of the widespread incidence of obesity.

Restraint

• Fluctuating and rising raw material costs of essential snack food components, such as cocoa powder, butter, milk powder, and others, are anticipated to restrain the market expansion. Increasing consumer health awareness can impede the development of high-carb snack items.

Global snacks market, due to the existence of international and regional competitors who provide a variety of snacking alternatives adapted to the local palates, the snacks market is fragmented. To maintain a competitive edge, the major industry participants are continually implementing various growth strategies. Innovations, mergers, and acquisitions, collaborations and partnerships are adopted by these players to thrive in the competitive market. Key player include Cargill Inc., PepsiCo Inc., Nestlé S.A., Mars Inc., and Tyson Foods. The creation of nutritious snack food products with unique flavours is the main emphasis of major snacks market participants.

Top Player's Company Profiles

• ConAgra Foods Inc.
• PepsiCo Inc.
• Ferrero S.P.A.
• The Kraft Heinz Company
• McCain Foods Ltd.
• Tyson Foods, Diamond Foods
• Mondelez International Inc.
• General Mills Inc.
• Nestlé S.A.
• Kellogg Company
• Lamb Weston Holdings Inc.

Recent Developments

• In September 2022, Chubby Snacks, the creator of cloud-shaped superfood peanut butter and jelly sandwiches with the tagline "cutting crusts, not corners," to prepare for its planned statewide launch, has acquired $3.25 million in funding from a group of CPG founders and institutions. Recently, the firm streamlined its production procedure through complete automation, which would enable it to greatly increase its profits and efficiency.
• In September 2022, NBA All-Star and professional basketball player Chris Paul has formally introduced his new range of vegan snacks in collaboration with Gopuff. With snacks like Nacho Cheeze Tortilla Chips and Classic BBQ Porkless Rinds, the snack brand Good Eat'n is marketed as being "surprisingly plant-based." The Gopuff app is the only place where the seven various snacks in the Good Eat'n line could be bought; however, when the snacks hit the stores, they won't be found in the speciality aisle since the line is made to stand out among the sea of colourful bags in the chip aisle.

Fruit snacks are a type of processed fruit made in the food and beverage sector that is higher in nutrients. Gummies and other sweet confectionary nibbles are both classified as fruit snacks. Fruit snacks made from concentrated white grape juice also include refined sugar. Corn syrup, sugar, fruit concentrate, water, gelatin, and a variety of real and fake flavours are used to make fruit snacks. The main factors influencing the growth of this type of snacks are increased health consciousness among consumers and growing demand for convenience and processed meals. Further boosting the fruit snacks demand for fruit extract are increased research and development efforts in the food and beverage sector and rapid technological innovation.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

According to our global snacks market analysis, the size of the global market for snack food items is expanding significantly as a result of increase in demand, which is being fueled in part by factors including people's busy lifestyles, which encourage them to choose fast or prepared foods. The proportion of independent working women, dual-income households, and nuclear families is rising globally. The demand for convenient meals is multiplied by several due to this demographic trend. The closest substitute for normal food, which may be consumed at any time, is snack food. Additionally, it is anticipated that the introduction of fresh and wholesome snack items by regional and worldwide competitors would favourably impact the estimated growth of the snack market.