April 16, 2024
Snack Products Market

Snack Products Market is Estimated to Witness High Growth Owing to Advancements in Thermal Packaging Solutions

The global snack products market is a lucrative industry that is experiencing steady growth. Snacks have become an integral part of daily life for many people around the world. They provide a convenient source of nutrition on-the-go. Some of the most popular snack items include chips, nuts, crackers, pretzels, ready-to-eat popcorn, dried fruits, and candy. The advantages of snacks over conventional meals are that they are usually portable, take less time to prepare and consume, and help curb hunger between meals or on busy days. With the rising popularity of packaged and ready-to-eat foods, demand for snacks is growing globally.

The global snack products market is estimated to be valued at US$ 1756.42 billion in 2024 and is expected to exhibit a CAGR of 9.7% over the forecast period of 2024 to 2030.

Key Takeaways

Key players operating in the snack products market are Pelican BioThermal LLC, Sonoco Thermosafe, Cold Chain Technologies Inc., Cryopak, Sofrigam Company, Intelsius (A DGP Company), Coolpac, Softbox Systems Ltd, Clip-Lok SimPak, and Chill-Pak. These companies offer innovative thermal packaging solutions that help extend the shelf life of snacks during transportation and storage.

There is high growth potential in emerging markets due to rising incomes, urbanization, and introduction of western snacking habits. Snack manufacturers are focusing on product innovation and introducing more nutritious offerings to cater to health-conscious consumers.

Advancements in thermal packaging solutions play a vital role in the snack products industry. New materials such as phase change materials help regulate temperature within an optimal range and prevent spoilage during shipping. This allows snacks to reach far-flung markets while maintaining freshness.

Market Drivers

Changing lifestyles and hectic schedules have increased the demand for convenient snacks that can be eaten on-the-go. Young consumers in particular favor snack foods and beverages for indulgence. The marketing strategies of key companies such as branding, promotions, and aggressive retail expansion have enhanced product visibility and driven sales. Moreover, expanding distribution networks ensure wide availability of snacks across modern retail formats, groceries, and convenience stores globally. Rising disposable incomes in developing nations have boosted per capita spending on packaged snack foods.

The Global Snack Market Size is facing challenges due to disruptions in supply chain and fluctuations in prices of raw materials used in production of snacks. The Covid-19 pandemic has negatively impacted the logistics and transportation systems across the globe. Movement restrictions imposed by various governments led to closure of manufacturing facilities of many snack companies. This resulted in reduced availability of various snack items in retail stores and supermarkets. The prices of crops such as corn, potato and wheat which are key ingredients for snacks have witnessed significant volatility in last year due to unfavorable weather conditions in major producing regions. Increase in freight charges has also pushed up the input costs for snack manufacturers. Changing consumer preference towards healthy snacks is another challenge. With rising health awareness, people are shifting from calorie dense snacks to nutritious options like protein bars, veggie chips and fruit snacks. This transition is forcing companies to innovate and develop new product lines aligned with wellness trends.

SWOT Analysis

Strength: The snack segment offers huge opportunities for innovation and product differentiation. Players can experiment with various recipes, flavors and packaging formats to attract diverse consumer segments.

Weakness: High dependency on few raw materials makes the industry vulnerable to supply and price shocks in agricultural commodities.

Opportunity: Growth of foodservice channel and popularity of on-the-go consumption culture is propelling the demand for portable snack foods.

Threats: Strict government regulations regarding packaging waste disposal and ingredients used can negatively impact business models of some players.

Europe dominates the global snack products market with over 30% value share. Countries like Germany, United Kingdom, France and Italy host major snack food companies and have developed retail infrastructure to support the demand and supply of snacks. North America is the second largest market led by United States. The fast-paced lifestyle prevalent in North America drives the need for convenient packaged snacks among population. Asia Pacific market for snack products is emerging at fastest pace owing to rising disposable income, expanding middle class and westernization of eating habits in India, China and other developing Asian economies. Latin America and Middle East & Africa also offer profitable growth prospects for international as well as local snack manufacturers.

The fastest growing regional market for snack products during the forecast period is expected to be Asia Pacific. This is attributable to growing working population, increasing popularity of snacking occasion across dayparts and penetration of international snack brands through organized retail in Asia’s high potential economies. Sustained economic growth witnessed over past decades has significantly elevated the spending capacity of consumers in Asia, raising the demand for branded snack foods. Rising health consciousness among Asians is also benefitting grain-based and fruit-nut hybrid product types.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it