A new report by Ken Research projects the global snack foods market to be worth $800 billion by 2030, with a compound annual growth rate (CAGR) of 5.1% over that time. The study cites several factors contributing to those numbers, including emerging markets where disposable income is on the rise, leading to a projected 40% growth in snack sales within developing economies around the world.
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Other key elements driving the rise in global snack sales include:
Consumer desire for convenience. The report indicates a 30% on-the-go snacking surge through 2030, highlighting the demand for portable snack options.
Healthy and functional ingredients. Shoppers want the option of snacks that offer health benefits as well as great taste, although salty snacks still take the top spot for most popular snack foods with a 50% market share. The study projects a 25% growth opportunity for manufacturers to develop healthier snack options that are high in protein, fiber, and other nutrients.
E-commerce opens opportunities for manufacturers. Because many snack foods are non-perishable, snack food processors can send their products directly to customers anywhere without relying on the cold chain or more costly perishable foods shipping options. E-commerce also offers another avenue of product variety for shoppers, with online snack sales anticipated to grow 20% by 2030.
Sustainable packaging. The snack industry is among the food and beverage segments leading the way in developing eco-friendly packaging, which in turn can attract sustainability-minded consumers.
In addition to these factors driving growth, Ken Research notes competition for snack food customers will continue to evolve, with numerous established players and emerging brands vying for market share, so success will hinge on innovation and effective brand differentiation. Also, fluctuations in the prices of raw materials like grains and oilseeds can squeeze profit margins for manufacturers on a year-by-year basis. so implementing cost-efficiency measures and exploring alternative ingredients when supplies are inconsistent will be crucial for snack food manufacturers to stay profitable.
