Global snack foods market to reach US$334B and 48.5 million tons in volume terms by 2015 primarily on changing consumer demographics, affluence levels, GIA forecasts; innovation in packaging, flavors to remain major growth drivers
SAN JOSE, California
February 17, 2011
– GIA announces the release of a comprehensive global report on Snack Foods market. Global snack foods market is forecast to reach US$334 billion and 48,519 thousand tons in volume terms, by the year 2015, driven primarily by changing consumer demographics, perceptions, priorities and affluence levels. Today’s hectic lifestyles leave no space for elaborate family meals, thus paving the way for highly convenient, tasty and healthy snack food that serve as both appetizers as well as complete meal solutions. Strong opportunities exist for slim, lean, fat-free, and guilt-free snacks, while innovation in terms of packaging, flavors and convenience will also continue to be the major growth drivers. Hitherto unexplored markets such as Asia Pacific, Latin America, and Eastern Europe represent huge potential for future expansion.
Paucity of time, life style changes and the convenience factor are bringing to fore the time-elevating advantages of snack foods and supporting the continuous demand increase for the industry. Impressive gains were recorded not only in the seemingly matured US and Europe but also in the growing regions of Asia-Pacific and Latin America. With globalization of brands and products, consumers in the developing world have caught up with their western counterparts. The wide palate of snack foods caters to different taste buds with a host of flavors. Spanning from no/low fat variety to high calories/protein content, the range of snack foods quells the hunger of consumers with different health requirements. Easy on-the-go portable packages, such as stand-up pouches, single-serve/ bite-sized packs, resealable bags, and finger-hugging canisters, which add a new dimension to the concept of added convenience, is expected to emerge as a major product variable for commercial success.
The fast fading line between meals and snacks is churning out additional opportunities for snacking. Health-driven snackers are setting into motion strong demand for healthy, low fat, low-calorie, organic, fiber-rich and vitamin and mineral fortified snacks, while carefree snackers are igniting demand for diverse taste and flavor profiles to quench their indulgent cravings. With obesity percentages alarmingly increasing, particularly in developed nations, health concerning issues are rising in the snack foods market with consumers, and manufacturers playing the blame game as they pass the buck of responsibility between them. Food marketers with global profiles have begun hitting back by significantly lowering the fat content in their product offerings, hoping to deflect the heat caused by the “Obesity Epidemic”. Continuous innovations in flavors, and tastes, especially exotic, and sophisticated flavors, are expected to help the market score huge gains in the upcoming years as, recession or not, consumers never comprise on taste and flavor. With a growing percentage of the global population in both developed and developing countries, eating fewer full meals and indulging more on snacks, the sector is encroaching the territory of convenient breakfast and dinner solutions.
Fruit snacks and nuts are expected to achieve further sophistication and improve market share, which could be mainly attributed to their inherent health benefits. The wholesomeness of nuts, which are rich in unsaturated fats, antioxidants, and omega-3 fatty acids is expected to spruce up market opportunities in the Snack Nuts category of salted snacks. In addition, the rise in popularity of protein-rich diets is expected to take demand for meat-based snacks to a new high. Stringent regulations over labeling of trans-fat content in packaged foods in the developed markets are additionally expected to drive the popularity of TFA (trans-fatty acids) free snack products. Lately, due to health reasons, consumers are favoring savory snacks with lesser amounts of salt in them. Producers have taken up the initiative for lowering sodium content in products through salt-reduction technologies at the manufacturing level. Healthy cereal bars, which fall under the category of alternative snacks, are also luring more and more consumers. This inexpensive alternative for a meal is witnessing increasing number of takers as its healthy positioning continues to entice consumers. The marketplace also holds tremendous potential for gluten-free products.
The global economic crisis of 2008-09 can be construed as causing minimum harm to the market for snack foods. Even through the years 2008 and 2009, where in the impact of recession was believed to be the maximum, the market for snack foods continued to grow, although at a reduced pace. Markets worldwide witnessed a quick rebound in 2010 resuming near normal, pre-crisis level growth rates. Robust growth rates, even higher than those in pre-crisis years, are also forecast in the near term as the market gears up for full-scale expansion. Strong dollar growth is expected to stem from the snack nuts and tortilla & corn chips snacks markets, with Asia-Pacific and Latin American regions leading the growth, with rates averaging at 6%-7% for both the segments over the analysis period. Potato chips, tortilla & corn chips and meat snacks represent the largest selling product segments within the salted snacks product group.
Europe, powered by demand from major markets such as UK, Germany, France, Spain and Russia among others represents the largest market for snack foods, in value terms, as stated by the new research report on Snack Foods. The US and Latin America trail behind as the other significant markets, capturing a consolidated sizeable chunk of the global snack foods market. However, in terms of growth prospects, Asia-Pacific region is slated to charge ahead with the overall fastest compounded annual growth rate of about 6.0% through 2015. By product group, Bakery Snacks represents the largest product segment. The Salted Snacks category assumes special importance not only in terms of large market standing, but also the potential to advance market growth at the highest rate of about 6.0% over the analysis period.
The snack foods market is highly fragmented with several hundreds of large, medium and small players dotting the industry landscape. Competition is intensely fierce, with smaller players struggling to coexist with the large multinationals who literally dominate market dynamics. The snack foods market is also characterized by the presence of global and regional level private label players. Key participants profiled in the report include The Bachman Company, ConAgra Foods Inc., Chips Group, Tohato Inc., Cadbury Schweppes Plc., General Mills Inc., Groupe Danone, Herr Foods Inc., Intersnack Knabber-Gebäck GmbH & Co. KG, Jack Link’s, Kellogg Company, Kraft Foods, Mission Foods Corporation, Nestlé USA Inc., Nabisco Inc, Oberto Sausage Company, PepsiCo, Quaker Oats Company, Frito-Lay, Walkers Snack Foods Ltd, Procter and Gamble Company, Pepperidge Farm Inc., The Hain Celestial Group Inc., United Biscuits Finance Plc, Utz Quality Foods Inc., Weaver Popcorn Company Inc., and Yamazaki Baking.
The research report titled “Snack Foods: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of industry overview, current market trends, growth drivers and challenges, product overview, product launches, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for major geographic markets such as United States, Canada, Japan, Europe (France, Germany, Italy, the United Kingdom, Spain, Russia and Rest of Europe), Asia-Pacific, Latin America (Brazil, Mexico, Andes and Rest of Latin America) and the Middle East. Market analytics are provided in both value (US$) and volume (tons) terms for product segments including Salted Snacks (Potato Chips, Tortilla & Corn Chips, Meat Snacks, Snack Nuts, Popcorn, Pretzels, and Cheese Snacks), Bakery Snacks and Specialty & Frozen Snacks. The study also provides historic data for an insight into market evolution over the period 2001 through 2006.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Snack_Foods_Market_Report.asp.
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.