Growing consumer health awareness is leading the market towards snacks that are healthier. Consumers are willing to pay more for healthier food products and this increases demand, which translates to greater business opportunities for food manufacturers.
Consumers are leaning towards convenient food. Food products that are popular in the market are potato chips, popcorn, nuts and seeds, and also extruded snacks which are produced using a food processing technique for nutritious food that includes mixing, forming, shaping and kneading. Consumers said they were looking for functional foods providing benefits which can reduce their risk of disease and promote good health.
Savoury snacks are categorised as products that are not sweet, unlike confectionery and cakes. Currently available flavours for savoury snacks, alongside increasing research and development investment by key industry players to introduce more flavours, are expected to contribute to future growth in this market.
The growth in e-commerce is expected to rise significantly and capture more market share in the next decade than physical stores. This growth coupled with the changing retail landscape is predicted to have a positive impact on savoury snacks over the next nine years. Product selection matters to consumers and a variety of food products should be available to them on online channels.
Asia Pacific and North America hold the largest regional share in the savoury snacks market, in terms of revenue. The growth in Asia Pacific is driven by countries such as Japan and China. The consumers in these countries have started adopting healthier lifestyles on account of rising concerns about childhood obesity. The growing demand from developing countries such as India, Indonesia and Thailand is expected to boost product demand over the next nine years.
Consumers in Singapore are choosing the healthier variant of savoury snacks, with nuts being a favourite. In India, baked and roasted products are expected to do well in the market. Consumers are expected to give more importance to the ingredients used in making the product. The rural market will become more important, as a result of improved household disposable income and wider distribution reach of manufacturers. In Thailand, aggressive marketing and advertising, as well as the introduction of more products are likely to drive the savoury snacks market.
The savoury snacks industry is distinguished by rising investments and high marketing costs to improve the supply chain of companies. The industry also has players who are keen to improve operations and introduce more flavours.
Major findings from the report by Grand View Research Incorporated reveal that nuts and seeds are predicted to be the fastest growing segment with a compound annual growth rate (CAGR) of 9.4 percent from 2016 to 2025, gathered from increasing demand from Brazil and Japan. The report also demonstrated that flavoured savoury snacks of the roasted or toasted variety have the largest flavour segment in the market, with a CAGR of eight percent over the next nine years.