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Beyond Guilty Pleasures: The rise of health-conscious snackers and the transformation of the savory snacks market, spotlighting functional ingredients, nutritional claims, and wellness-oriented snacking trends with USD 195.16 Billion market size in 2022.
Jun, 30
2023

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Beyond Guilty Pleasures: The rise of health-conscious snackers and the transformation of the savory snacks market, spotlighting functional ingredients, nutritional claims, and wellness-oriented snacking trends with USD 195.16 Billion market size in 2022.

 

The savory snacks industry, a prominent segment within the global food and beverage market, plays a vital role in satisfying consumers' cravings for delicious and convenient snack options. With its diverse range of products and ever-growing popularity, this industry has witnessed remarkable growth and innovation over the years. Savory snacks encompass a wide array of tantalizing offerings, including potato chips, pretzels, nuts, popcorn, and savory crackers, to name a few. The industry caters to consumers' desire for savory flavours, textures, and on-the-go snacking experiences. Characterized by intense competition and dynamic consumer preferences, this sector is driven by constant product development, strategic marketing, and evolving trends. Manufacturers and producers continually strive to meet the demands of a discerning consumer base by introducing new flavour profiles, healthier alternatives, and innovative packaging solutions. As a result, the savory snacks industry has become a thriving and lucrative sector, capturing the attention of both established players and emerging entrepreneurs seeking to capitalize on the evolving snacking landscape. Recognized for its wide assortment of products and ever-expanding popularity, this industry has experienced remarkable growth and continuous innovation throughout its existence. Savory snacks, comprising an extensive range of tantalizing offerings such as crispy potato chips, savory pretzels, savory nuts, flavourful popcorn, and savory crackers, have cemented their place as a beloved snacking choice for individuals of all ages and backgrounds.

According to the research report, "Global Savoury Snacks Market Research Report, 2028," published by Actual Market Research, the global savoury snacks market is anticipated to cross USD 263.04 Billion, increasing from USD 195.16 Billion in 2022. The market is expected to grow at a CAGR of 5.16% by 2023–2028. In an era marked by fast-paced lifestyles, the savory snacks industry fulfils a crucial role in catering to consumers' desire for convenient, ready-to-eat options that not only tantalize the taste buds but also provide a quick energy boost. The sector's success can be attributed to its ability to tap into consumers' preferences for savory flavours, diverse textures, and satisfying snacking experiences. Whether it's the satisfying crunch of a perfectly seasoned potato chip or the savory blend of spices coating a batch of roasted nuts, savory snacks offer an irresistible temptation that has become an integral part of our daily lives. The landscape of the savory snacks industry is characterized by intense competition, as manufacturers and producers vie for consumers' attention and loyalty. To stay ahead in this highly dynamic market, industry players engage in continuous product development, strategic marketing campaigns, and innovation-driven practices. They constantly strive to meet the evolving demands of a discerning consumer base, catering to their ever-changing tastes and preferences. As a result, the industry has witnessed a steady stream of new flavour profiles, healthier alternatives, and innovative packaging solutions that aim to captivate consumers and enhance their snacking experiences. Furthermore, the savory snacks industry has emerged as a thriving and lucrative sector, attracting the interest of both established market leaders and aspiring entrepreneurs. With its promising growth trajectory and immense potential for profitability, it has become an appealing avenue for investment and business ventures. The industry's ability to adapt to shifting consumer trends, embrace health-conscious options, and embrace sustainability initiatives has played a significant role in its sustained success.

The global savoury snacks market is segmented into five major regions including North America, Europe, Asia-Pacific, South America and Middle East & Africa. The Asia Pacific region represents a significant growth opportunity for the savory snacks market, fuelled by changing lifestyles, urbanization, and a growing middle class. Traditional snacks like rice crackers, seaweed snacks, and dried meat products hold a strong presence, reflecting the cultural heritage of the region. Western-style savory snacks, including potato chips and extruded snacks, have gained popularity among younger consumers. Manufacturers are capitalizing on the demand for healthier alternatives, introducing baked snacks, low-fat options, and snacks made from local ingredients. North America is one of the prominent markets for savory snacks, driven by a strong snacking culture and a diverse range of products. Potato chips and tortilla chips are highly popular, with a wide variety of flavours and textures available to cater to consumer preferences. Healthier options, such as baked chips and organic snacks, have gained traction as consumers seek more nutritious alternatives. Snack subscription services and online retailing have seen significant growth, offering convenience and access to a wide selection of savory snacks. On the other hand, Europe is a mature market for savory snacks, with a strong presence of well-established brands and a high level of consumer engagement. Potato chips and savory crackers are popular choices, with a wide range of flavours and premium options available. Health and wellness trends have influenced the market, leading to an increased demand for organic, low-fat, and gluten-free snacks. Regional and ethnic flavours, such as paprika, barbecue, and Mediterranean-inspired seasonings, cater to diverse taste preferences across European countries. South America showcases a vibrant savory snacks market, characterized by a rich culinary heritage and a preference for bold and spicy flavours. Traditional snacks like corn-based snacks, plantain chips, and yuca chips are widely consumed, offering a unique regional taste experience. Snack brands have introduced innovative flavours, combining local ingredients with global inspirations to cater to evolving consumer preferences. The market has witnessed a shift toward healthier snacks, including baked options and snacks made with natural ingredients, as consumers prioritize wellness. The Middle East and Africa region present a diverse market for savory snacks, influenced by cultural traditions, local flavours, and snacking habits. Snacks like roasted nuts, spiced popcorn, and savory pastries (such as samosas) are popular, reflecting the region's culinary heritage. The market is witnessing a rise in demand for premium and gourmet snacks, aligning with consumers' aspirations for indulgence and sophistication. Local manufacturers are incorporating global flavours and packaging innovations to cater to younger demographic and urban consumers.

Based on the product type, potato chips have a broad consumer base due to their widespread popularity and availability in different flavours and varieties. Market trends show a growing demand for healthier potato chip options, such as baked or kettle-cooked chips, as consumers seek alternatives with reduced fat content. Flavours range from traditional options like salted and barbecue to more unique and exotic choices like sour cream and onion, jalapeno, or even regional flavours. Extruded snacks, including cheese puffs and corn puffs, are known for their light and crunchy texture. Cheese puffs, in particular, have gained popularity due to their cheesy flavour and addictive nature. Consumers are increasingly interested in trying innovative flavours and unique shapes, which has led to the introduction of flavours like spicy cheese, jalapeno, or even specialty flavours inspired by global cuisines. Savory nuts and seeds are favoured for their protein content, healthy fats, and satisfying crunch. Flavoured varieties, like honey-roasted, BBQ, or spicy seasoned nuts, provide diverse taste options for consumers. The market has seen an increase in demand for healthier alternatives, such as dry-roasted or lightly salted nuts, catering to health-conscious individuals. Tortilla chips are a staple in many households and are commonly served with salsa, guacamole, or other dips. Market trends reflect an increasing demand for healthier tortilla chips made from whole grains or with organic and non-GMO ingredients. Flavoured tortilla chips, like spicy chili, lime, or chili-lime, have gained traction, appealing to consumers seeking bolder taste experiences. On the other hand, meat snacks, including beef jerky and meat sticks, offer a savory and protein-packed snacking option. Market trends reveal an increasing demand for healthier meat snacks made from leaner cuts of meat and without artificial preservatives or additives. Flavour innovations, such as teriyaki, peppered, or spicy varieties, cater to consumers seeking bold and robust tastes.

The global savory snacks market offers a diverse range of flavours to cater to different taste preferences and consumer demands. Traditional flavours like salted, barbecue, and sour cream and onion remain popular across regions. These classic flavours have a broad consumer base and are often associated with comfort and familiarity. Manufacturers continue to innovate within traditional flavours by introducing variations such as kettle-cooked, extra spicy or regional-specific seasonings. Spicy and hot flavours have gained significant popularity, reflecting the consumer preference for bold and intense taste experiences. Flavours like jalapeno, chili, and habanero offer a fiery kick, appealing to consumers who enjoy a sensation of heat in their snacks. Global influences have contributed to the rise of ethnic spicy flavours like chipotle, peri-peri, or sriracha, adding complexity and depth to snack offerings. Cheese flavours, ranging from cheddar and mozzarella to blue cheese and Parmesan, have a strong presence in the savory snacks market. Cheese-based snacks, like cheese puffs, cheese balls, or cheese-flavoured crackers, provide a rich and savory taste experience. Manufacturers often experiment with different cheese varieties and combinations, offering unique and gourmet cheese flavours to entice consumers.

Barbecue and smoky flavours evoke a sense of outdoor grilling and smoky aroma, appealing to consumers who enjoy savory and charred profiles. Barbecue-flavoured potato chips, meat snacks, and savory crackers are popular choices among snack enthusiasts. Variations within barbecue flavours, such as honey barbecue, mesquite, or spicy barbecue, provide options for different taste preferences. The influence of global cuisines has expanded the range of savory snack flavours available in the market. Snacks with flavours inspired by Asian, Mexican, Indian, and Mediterranean cuisines have gained popularity. Consumers seek flavours like teriyaki, sweet chili, tikka masala, wasabi, and salsa verde, offering a taste adventure and multicultural snacking experience. The demand for gourmet and artisanal snacks has led to the introduction of unique and sophisticated flavours. Truffle, sea salt and cracked pepper, rosemary and olive oil, or balsamic vinegar is examples of premium flavour profiles that cater to consumers seeking elevated snacking experiences. Gourmet popcorn flavours, such as caramel sea salt, white cheddar truffle, or spicy caramel, showcase the indulgence and innovation within the market. Manufacturers are constantly exploring novel flavour combinations to pique consumers' curiosity and offer something new. Exotic flavours like wasabi ginger, Thai curry, Moroccan spice, or Korean barbecue provide an adventurous and unexpected snacking experience. Limited-edition and seasonal flavours add excitement and create a sense of exclusivity, encouraging consumers to try new products.

Supermarkets and hypermarkets are the dominant distribution channels for savory snacks globally. They offer a wide variety of savory snacks from different brands, providing consumers with convenient access to their favourite snacks in one location. Supermarkets and hypermarkets often allocate prominent shelf space to savory snacks, ensuring high visibility and impulse purchases. Private label brands have gained prominence in these channels, offering cost-effective alternatives to established snack brands. Convenience stores are also an important distribution channel for savory snacks, particularly for on-the-go snacking and impulse purchases. These stores offer a curated selection of popular savory snacks, focusing on convenience, accessibility, and quick service. Savory snacks are strategically placed near checkout counters or in grab-and-go sections to encourage last-minute purchases. Single-serve and smaller packaging options are popular in convenience stores, catering to individual snacking needs. However, online retailing has witnessed significant growth in the savory snacks market, driven by the increasing popularity of e-commerce platforms. Consumers appreciate the convenience of browsing and purchasing a wide range of savory snacks from the comfort of their homes. Online channels offer a diverse selection of flavours, specialty and international snacks, and niche products that may not be readily available in physical stores. Snack subscription services have gained traction, allowing consumers to discover new flavours and receive curated snack boxes on a regular basis. Foodservice channels, including restaurants, cafes, cinemas, and stadiums, contribute to the distribution of savory snacks. Savory snacks are often served as appetizers, side dishes, or as part of combo meals in foodservice establishments. Popcorn, nachos, French fries, and mozzarella sticks are popular savory snacks in the foodservice sector. Snack manufacturers collaborate with foodservice operators to develop customized snack options and flavours to meet the specific needs of their establishments. Vending machines also offer a convenient and accessible distribution channel for savory snacks in various locations, including office buildings, schools, and public areas. They provide 24/7 access to a selection of pre-packaged savory snacks, allowing consumers to satisfy their cravings on-the-go. Vending machines often feature popular savory snacks like potato chips, pretzels, and granola bars, appealing to a wide consumer base.

Manufacturers will focus on developing snacks with clean labels, natural ingredients, reduced sodium, and healthier cooking methods like air frying. Alternative ingredients such as ancient grains, legumes, and plant-based proteins may be incorporated to meet the needs of health-conscious consumers. With the rising popularity of plant-based diets, savory snacks made from plant-based ingredients and alternative protein sources will gain traction. Snacks made from lentils, chickpeas, algae, and insect-based proteins may become more prevalent, offering sustainability and nutritional benefits. Plant-based meat alternatives, like vegan jerky or meat-free snack sticks, could provide savory snacking options for consumers looking to reduce their meat consumption. The integration of functional ingredients and health benefits into savory snacks is a growing trend. Snacks fortified with vitamins, minerals, antioxidants, probiotics, and adaptogens may cater to consumers seeking functional benefits beyond basic nutrition. Ingredients like turmeric, matcha, collagen, and CBD could find their way into savory snacks, offering targeted wellness properties. Advancements in technology and manufacturing processes may enable greater personalization and customization of savory snacks. Customizable flavours, textures, and ingredient options could allow consumers to create their unique snack combinations, catering to individual preferences and dietary restrictions. 3D printing technology may even allow for on-demand production of personalized savory snacks, opening up new possibilities in product innovation. Automation and robotics may revolutionize the snack manufacturing process, enhancing efficiency and consistency. Automated systems could enable the production of snacks with intricate shapes, flavours, and textures, leading to novel and visually appealing products. Robotics may also streamline packaging, labeling, and quality control processes, ensuring faster and more precise snack production. Increasing consumer awareness about environmental sustainability will drive the demand for eco-friendly packaging in the savory snacks market. Biodegradable, compostable, and recyclable packaging materials, such as plant-based films or paper-based alternatives, may replace traditional plastic packaging. Innovative packaging designs, like edible wrappers or dissolvable packaging, could emerge, reducing waste and environmental impact. The integration of smart technology and connected devices may enhance the snacking experience. Smart packaging equipped with sensors or QR codes can provide nutritional information, ingredient sourcing details, or personalized recommendations. IoT-enabled devices may allow consumers to reorder snacks, receive personalized offers, or track their snacking habits for better health management.

Start-up Scenario:
• Rhythm Superfoods: Rhythm Superfoods is a start-up that specializes in creating healthy and innovative plant-based snacks, with a particular focus on kale chips and beet chips. They offer a range of flavors and seasonings, catering to health-conscious consumers looking for nutrient-dense and flavorful snacking options.
• Barnana: Barnana is a start-up that produces organic banana snacks, including banana chips and banana brittle. They focus on using imperfect or surplus bananas that would otherwise go to waste, promoting sustainability and reducing food waste in the snacking industry.
• Popchips: Popchips is a start-up that revolutionized the potato chip industry by introducing a unique cooking process that involves "popping" rather than frying the chips. Their chips are lower in fat and calories compared to traditional potato chips, appealing to health-conscious consumers seeking a healthier snacking alternative.
• Protes: Protes is a start-up that specializes in creating high-protein snacks, particularly protein chips and protein popcorn. They cater to fitness enthusiasts and individuals looking for a protein-rich snack option to support their active lifestyles.
• Peatos: Peatos is a start-up that offers a healthier alternative to traditional cheese puffs by creating pea-based snacks with bold and cheesy flavors. Their snacks are high in plant-based protein, fiber, and lower in fat compared to conventional cheese puffs, appealing to health-conscious consumers.
• Siete Family Foods: Siete Family Foods is a start-up that produces grain-free tortilla chips and other Mexican-inspired snacks. They specialize in creating snacks that are gluten-free, grain-free, and made with clean, high-quality ingredients, catering to consumers with specific dietary needs or preferences.
• SnackNation: SnackNation is a start-up that offers a subscription-based snack delivery service for businesses and individuals. They curate a selection of healthy and innovative snacks from various brands, providing a convenient way for consumers to discover new and exciting snack options.