The growth of the global savory snacks market is directly attributed to the demographic and economic variations, which include up surging urbanization, growing per capita income of various countries, and increasing demand for tertiary processed food. Earlier, the savory snacks were munched as makeshift food between the major meals; however due to the evolving lifestyle, they are consumed among major meals in the various developed countries.
Not only the busy lifestyle of people has inclined their interest towards the consumption of packaged food including snacks, bakery and confectionary products, but also this trend is being fostered in the developing countries. This in turn, is offering more growth opportunities for the savory snacks market in the developing countries, as compared to their developed counterparts.
The competition posed by various substitute products to savory snacks is persuading the savory snacks manufacturers to augment innovation within their product offerings, for sustaining their market position. The growing health concern is also influencing the savory snacks manufacturers to introduce more healthy products within their portfolio.
The supplier section of the savory snacks industry includes producers of food ingredient and packaging. Once the product is ready to be dispatched and distributed in the market, the various distribution channels, such as distributors, retail, cafes and restaurants, play a vital role in extending the product reach to consumers. However, the retail format account for the most feasible and convenient mode distribution of savory snack products- with the large retail formats, such as supermarkets and hypermarkets accounting for the largest share of grocery sales in most of the developed countries. Whereas, the small retail formats including convenience stores, independent retailers, service stations and others, accounting for a substantial share in the developing countries.
The growing organized retail formats in the developing countries are laying growth opportunities for the global savory snacks market. The increasing numbers of supermarkets and hypermarkets, along with the increasing per capita income is urging consumers’ interest towards bulk buying of savory snacks, which is mostly offered by these retail formats. Convenience store is another retail format, which is growing at global level due to growing demand for convenience shopping.
Consumers prefer variation in taste and flavor of snacks, which is persuading the manufacturers to launch new product. Moreover, the increasing inclination of consumers towards organic foods is also encouraging the savory snack companies to adopt suitable measures for customer retention.
The global market is highly competitive due to its fragmented nature, and presence of various manufacturers. However, PepsiCo has posed itself as an exception with its large share. The key reason for the growth and sustainability of PepsiCo in the global market is the strong multinational presence of the company in the food and beverage segment, and its large product portfolio of savory snacks. The company has also been into continuous innovation and addition of varieties to its savory snacks products portfolio, through various research and development investments.
Some of the major competitors in the global savory snacks market include PepsiCo., Kraft Foods, ConAgra Foods, CALBEE, Diamond Foods, General Mills, Intersnack Group GmbH, Lorenz Bahlsen, Kellogg company, and Orkla ASA.
News Courtesy: P&S Market Research