News

Report: savoury snacks worth $166 billion by 2020

10 Aug 2015

P&S Market Research has released a new report analysing the development and projected demand of the savoury snacks market. The global savoury snacks market was valued at $111.1 billion in 2014. The market is expected to grow at a CAGR of 7.1% during 2015 to 2020, to reach $166.6 billion by 2020. The global savoury snacks market is being […]

Report: savoury snacks worth $166 billion by 2020

cheese-puffs-closeup-fills-frame-47784921P&S Market Research has released a new report analysing the development and projected demand of the savoury snacks market.

The global savoury snacks market was valued at $111.1 billion in 2014. The market is expected to grow at a CAGR of 7.1% during 2015 to 2020, to reach $166.6 billion by 2020. The global savoury snacks market is being driven by the rising urbanisation, increasing per capita income (especially in developing countries), and changing food culture. The high growth of the savoury snacks market in Asia-Pacific region is mainly coming from the increasing demand from China and India, as they constitute a large part of the global and regional population. The healthier alternatives to savoury snacks, such as bakery products, fresh fruits, and juices, are hindering the savoury snacks market growth; which is compelling companies to offer healthier snacking options. The demand for small pack sizes has been increasing considerably in certain countries, such as India and Mexico, due to increasing consumption from lower income groups and demographic changes.

People are demanding variety in snacks, the report says, which is encouraging companies to launch new products. Several companies have announced the launch of products with new tastes, flavours, and shapes to maintain their competitiveness in the market. Moreover, customers’ increasing inclination towards organic foods is compelling the savoury snack companies to innovate their products for customer retention.

The report segments the global savoury snacks market into potato chips, processed snacks, popcorn, nuts and others. Processed snacks accounted for the largest share, with a market size of $41,572.3 million in 2014 and it is expected to grow at a CAGR of 6.5% during 2015 – 2020.

Previously, notes the report, snacks were considered as a break time light food. However, in  recent times people have been increasingly eating them between meals. Snacks are being considered as a fourth meal of the day. In the U.S., Americans are forerunners amongst the snack eaters between meals as they love to snack everywhere from theatre, to workplace, to car, and even on the subway, the report claims.

Globally, the Indian savoury snacks market is expected to witness the highest growth – 16.6% during the period 2015 – 2020, The U.K. is the forerunner in snack consumption within Europe. According to a food research company, people in the U.K. snack 825 times a year as compared to the 807 times of the European consumers’ average. People in the age group 6 years to 24 years are the largest savoury snack consumers in the U.K. The U.K. leads the savoury snacks market in Europe; however, it is not the largest consumer in terms of per capita consumption. Countries such as Netherlands, Norway and Spain have a greater per capita consumption of savoury snacks as compared to their British counterparts. According to the European Snacks Association (ESA), the average annual per capita savoury snacks consumption in Europe is about 3.6 kilograms.

The increasing numbers of supermarkets and hypermarkets coupled with growing per capita income is encouraging people into bulk buying of savoury snacks, the report claims, which is mostly offered by large scale retail. Convenience stores are another format which is growing at a global level due to peoples’ growing demand for convenience.