Currently valued at £71bn ($94.5bn), the sector was forecast to achieve compound annual growth rate (CAGR) of 7.9%.
Growth was predicted mainly from developing countries in the Asia-Pacific and eastern European regions, which will achieve CAGRs of 13.7% and 7.3%.
Growth in the Latin American region was expected to register a more modest CAGR of 3.2%.
Canadean analyst Rashmi Mahajan attributed rapidly rising sales to the growth in urban populations.
‘Rising urbanisation’
Top five snacks
- Lay’s
- Doritos
- Pringles
- Cheetos
- Ruffles
“Rising urbanisation levels and busier lifestyles are impacting the eating habits of consumers, who are increasingly replacing main meals with more flexible, light, and convenient snacking options,” said Mahajan.
“Changing consumer preferences and the growing trend of ‘snackification’, which represents a significant portion of everyday eating routines, is driving the demand for portable and on-the-go formats.”
Big opportunities existed in large, populous developing countries with low per capita consumption levels, such as China, said Canadean.
Last year, China’s consumption of savoury snacks per person was estimated at 0.8kg per person. That compared with 1kg in India and high levels of consumption in developed countries.
US savoury snack consumption
US savoury snack consumption reached 9.5kg per person and 7kg in the UK.
Despite the regional differences in snacks consumption, innovation in flavours remained an important differentiating factor globally, as consumers across all ages opt for products offering new and unusual consumption experiences.
“Examples include nacho chips in papdi chaat flavour in India, maize snacks in a tangy fruit chutney flavour in South Africa, popcorn in strawberry and cream flavour in the UK, and potato chips in chocolate chilli flavour in France,” said Mahajan.
The global savoury snacks market was highly fragmented, with the top five brands holding less than 16% market share. The leading brands with the highest market share last year were: Lay’s, Doritos, Pringles, Cheetos, and Ruffles.
Meanwhile, more information is available in the report Global Savory Snacks Report; Analysis of opportunities offered by high growth economies.
Snackification meets health and wellness
“Canadean’s analysis reveals that the health and wellness trend has impacted the eating habits of consumers in developed markets, who tend to base their snacking choices on nutritional value and quality.
“In this way, consumers are trading up and spending more on premium varieties of snacks. Consumers in emerging countries including Brazil, China and India, on the other hand, mostly base their snack choices on value and experimentation.”