Global Savory Snacks Market Outlook 2030

Global Savory Snacks Market Overview

• The global savory snacks market was valued at USD 275 billion.2023. This market has been driven by increasing consumer demand for convenience foods that suit busy lifestyles, coupled with the rising trend toward healthier snacking options. The growth is further boosted by the launch of new products, flavors, and packaging innovations that cater to changing consumer preferences, specifically in urban areas. Additionally, the availability of snack options that emphasize low-fat, high-protein, and gluten-free content has expanded the market.

• Prominent players in the global savory snacks market include PepsiCo, Kellogg Company, Mondelez International, Intersnack Group, and Calbee. PepsiCo, through its Frito-Lay division, leads the market with its well-known brands such as Lays, Doritos, and Cheetos. Mondelez International enhances its market position with popular snack lines like Ritz and Triscuit.
• Mondelez International announced in 2023 that it had invested USD 150 million in upgrading its European production plants to implement more sustainable manufacturing processes. This includes reducing water usage and energy consumption across all its facilities. These efforts are aimed at meeting the companys sustainability targets while responding to consumer demand for eco-friendly products.
• Major cities such as New York, London, and Tokyo dominate the savory snacks market due to their high population densities, robust retail infrastructures, and fast-paced lifestyles. These cities have a significant consumer base that values convenience and portability in food products, making them prime markets for savory snacks. Furthermore, these cities host multinational snack manufacturers headquarters or regional offices, allowing for immediate market access and product promotion.

Global Savory Snacks Market Segmentation

By Product Type: The global savory snacks market is segmented by product type into potato chips, nuts & seeds, popcorn, pretzels, and extruded snacks. In 2023, potato chips hold the dominant market share. The continued popularity of this snack type is due to its widespread availability, convenience, and variety of flavors. Companies like Lays (PepsiCo) and Pringles (Kelloggs) have strong brand loyalty, further cementing potato chips position in the market. Additionally, the rise of baked and healthier potato chips has added a new dimension to this segments growth.

By Region: The global savory snacks market is segmented regionally into North America, Europe, Asia-Pacific (APAC), Latin America, and the Middle East & Africa (MEA). In 2023, North America dominated the market due to high consumption rates of snacks in the United States. The large working populsation frequently opts for convenient, ready-to-eat snacks, supported by the presence of leading snack brands and high disposable incomes. Europe follows with strong market performance, driven by the rising trend towards clean-label and healthier snacking options.

By Distribution Channel: The global savory snacks market is segmented by distribution channel into supermarkets & hypermarkets, convenience stores, online retail, and specialty stores. In 2023, supermarkets and hypermarkets indeed commanded the largest market share, primarily due to their extensive product variety and promotional discounts, which attract consumer traffic and drive sales. Major retailers like Walmart and Carrefour play a significant role in maintaining this dominance within the channel.

Global Savory Snacks Market Competitive Landscape

• PepsiCo (2023 Development): PepsiCo has announced plans to invest$200 millionin its Frito-Lay plant located inRosenberg, Texas, This expansion aims to add two manufacturing lines for Funyuns and tortilla chips and increase warehouse capacity, which will also create160 new full-time jobsat that facility.
• Mondelez International: In 2021, Mondelez International completed its acquisition of Hu Master Holdings with a USD 230 million investment. This acquisition strengthens Mondelezs foothold in the clean-label, organic snack market, reflecting the brand's commitment to expanding into premium and health-conscious snack categories.

Global Savory Snacks Market Analysis

Global Savory Snacks Market Growth Drivers

• Increasing Consumer Demand for Protein-Enriched Savory Snacks: The shift towards protein-rich diets has significantly boosted demand for high-protein snacks such as nuts, seeds, and meat-based products. According to the International Food Information Council, the demand for protein-enriched snacks grew notably in 2023, reflecting a broader health-conscious trend. Additionally, a survey by Mintel indicates that many consumers in the U.S. and Europe are actively seeking protein-rich snack options, driven by increasing awareness of health and fitness benefits.
• Rising Popularity of Clean-Label Products: The demand for clean-label, natural ingredients in savory snacks is increasing as consumers become more conscious of product formulations. In 2023, the European Food Safety Authority (EFSA) reported a significant preference among European consumers for snacks free from artificial additives, preservatives, and genetically modified organisms (GMOs). This growing preference has led major companies, such as Mondelez and PepsiCo, to reformulate their products and introduce new clean-label options. This shift is contributing to the expansion of the clean-label segment within the savory snacks market.
• Growth in E-Commerce for Savory Snack Distribution: The rise in online grocery shopping is significantly driving growth in the savory snacks market. In 2023, e-commerce snack sales in North America grew by 25%, driven by increased convenience, subscription models, and personalized marketing strategies. Major digital platforms like Amazon, Walmart, and Alibaba have made it easier for consumers to access their favorite snack products online. This trend is particularly pronounced in North America and Asia-Pacific (APAC), where the shift towards digital platforms is reshaping snack distribution.

Global Savory Snacks Market Challenges

• Rising Cost of Raw Materials: The cost of key raw materials like potatoes, corn, and vegetable oils has surged due to climate change and supply chain disruptions. This increase in raw material costs has put significant pressure on manufacturers, compelling them to either raise prices or absorb the costs, which impacts profit margins.
• Increasing Competition from Alternative Snacks: The rise of alternative snacks, such as plant-based protein bars and fruit snacks, is intensifying competition for traditional savory snacks. This shift is particularly pronounced among younger consumers who are increasingly seeking snacks with better nutritional profiles and sustainability. As more consumers turn to these alternatives, traditional savory snacks face potential challenges in maintaining their market share.

Global Savory Snacks Market Government Initiatives

• Public Health Englands Salt Reduction Targets: Public Health England has introduced strict salt reduction targets for snack products to combat rising obesity and hypertension rates. This initiative requires snack manufacturers to reformulate their products to comply with new standards, influencing product development and innovation strategies in the UK savory snacks market.
• Indias FSSAI Initiative on Trans Fat: The Food Safety and Standards Authority of India (FSSAI) has introduced regulations limiting trans fats in packaged snacks, compelling manufacturers to adjust their formulations. This move is part of a broader effort to improve public health and encourage the development of healthier snack options.

Global Savory Snacks Market Outlook

The global savory snacks market is poised for significant growth in the coming years, driven by evolving consumer preferences and advancements in technology. By 2028, the market is expected to undergo notable transformations, with health-conscious consumption patterns, premiumization, and technological integration playing key roles.

Future Trends:

• Increased Focus on Plant-Based Savory Snacks: The demand for plant-based savory snacks is set to surge as consumers continue shifting away from animal-based products. By 2028, plant-based snacks are expected to become a significant segment of the market, driven by innovations in plant-based proteins and sustainable ingredient sourcing. Major snack manufacturers are investing heavily in R&D to cater to this growing trend.
• Expansion of Premium and Gourmet Snack Offerings: The premiumization of savory snacks will continue to drive market growth, as more consumers seek out artisanal and gourmet products. By 2028, the demand for premium snacks will be strong, with a focus on unique flavors, high-quality ingredients, and limited-edition offerings. This trend will be especially pronounced in urban areas, where consumers are willing to pay more for superior taste and experience.