What are people snacking on in 2022?
The global snack market is expected to increase greatly between 2020 and 2025, as the demand for healthy snacks rises. However, research suggests there’s still a place for indulgence even among the health conscious.
The global snack market size is expected to increase by $260.88 billion between 2020 and 2025, according to a new research study by Technavio.
The market saw a year-over-year growth of 5.11 percent in 2021 and is expected to increase at a compound annual growth rate (CAGR) of 5.71 percent between 2020 and 2025, the study states.
The market is said to be driven by rising health concerns, changing lifestyles and diets, and the increasing replacement of meals with snacks. The rising prevalence of obesity and similar diseases is encouraging consumers across the world to adopt healthier lifestyles, and, as a result, the consumption of healthy snacks such as multigrain chips (crisps) and rice snacks, to improve things such as metabolism rates.
The expansion of the retail industry has significantly increased the number of hypermarkets and supermarkets across the world, the study adds. This, coupled with rising disposable incomes, has further driven the consumption and sales of healthier snacks.
The report segments the snack market by product: bakery, chocolate, savoury, and frozen, among others) and geographic locations (Asia-Pacific, Europe, North America, South America, and MEA). The bakery products segment generated maximum revenue in the market (of the categories assessed in the report) in 2021, and the report predicts that this category’s growth will be significant during the forecast period (2020-2025).
In terms of geographic locations, the researchers believe the Asia-Pacific region will dominate shares. The region currently holds 35 percent of the global market share, and the aforementioned retail expansion has been crucial in driving this growth.
The report also highlights China and Japan as key markets for snacks in Asia-Pacific, with the researchers anticipating that growth in these regions will be faster than any others.
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In addition to these predictions, the report also offers detailed insights on the product launches and successful business strategies adopted by key vendors in the market. Some of the mentioned companies include Kellogg Co., Kind LLC., and McCain Foods Ltd.
Although healthy snacking is on the rise, a report published by the National Confectioners Association (NCA), did also find that in 2021, chocolate and candy sales were up 11 percent over 2020, and 15.4 percent in 2019, as consumers focused on seasonal celebrations, gifting occasions, and emotional well-being.
“In 2021, consumers found even more creative ways to celebrate holidays and special occasions, and they continued to turn to chocolate and candy to bring a little fun to those experiences,” John Downs, President and CEO of NCA, said. “The shift to home-centricity has meant new opportunities for confectionery companies and their retail partners as consumers seek new treating moments with new items, new pack sizes and new brands.”
The report by NCA also revealed that the majority of consumers (72 percent) would like chocolate and candy brands to offer portion size variety, with many believing emotional and physical wellbeing is linked. This suggests that health is still very much on consumer’s minds, but perhaps in a different way to what the Technavio report suggested.
“Sales of chocolate and candy grew significantly this past year as consumers looked to prioritise their emotional well-being, and created a special and unique place for these treats in their lives,” added Downs. “A key takeaway from the report is that in contrast to rising costs for families related to inflation, health care and simply putting food on the table, candy remains a simple, affordable treat. Whether consumers found their inspiration on social media or in the grocery aisle, they reached for chocolate and candy as a means of self-care and enjoyment in an otherwise uncertain time.”