Demand for snack foods globally is increasing steadily as hectic schedules and busy lifestyles are driving consumers supplant traditional meal occasions with convenient and healthy snack options. Demand in the global market is being driven by changing dietary habits and rapid urbanization in the developing countries. Market demand is also likely to be positively influenced by increasing disposable incomes along with introduction of innovative products. Snack foods with desirable qualities including low fat, cholesterol, sugar and calorie content, are poised to register robust growth and support market expansion. Increasing health consciousness along with craving for snack foods is anticipated to result in dynamic demand for low-fat, no-fat, low-sugar, no-sugar, low-carb, no-carb, and low-calorie snack foods. The gradually receding line between meals and snacks is churning out additional opportunities for snacking. Future growth in the market will be driven by robust demand for functional snacks, including bars, chips, cookies and yogurt, and surging popularity of protein-fortified, organic, and natural snacks.
Amid the COVID-19 crisis, the global market for Snack Foods estimated at US$568.2 Billion in the year 2022, is projected to reach a revised size of US$732.6 Billion by 2026, growing at a CAGR of 6.7% over the analysis period. Bakery Snacks, one of the segments analyzed in the report, is projected to record a 6.7% CAGR and reach US$307.8 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Salted Snacks segment is readjusted to a revised 7.7% CAGR for the next 7-year period. Further, functional snack foods are anticipated to promise fast growth and associated business opportunities for market participants. With snack culture spreading like wild fire in most regions, product innovations have gathered pace in the market. In addition, continuous search for nutritious, convenient and portable foods among customers is boosting the demand for functional snack foods. Growth in the functional snacks segment is attributed to the high demand for meal replacement products and increasing trust in adopting the fast-food lifestyles among customers.
The U.S. Market is Estimated at $174 Billion in 2022, While China is Forecast to Reach $87.9 Billion by 2026
The Snack Foods market in the U.S. is estimated at US$174 Billion in the year 2022. China, the world`s second largest economy, is forecast to reach a projected market size of US$87.9 Billion by the year 2026 trailing a CAGR of 8.9% over the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 5.4% and 5.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.7% CAGR. The US constitutes the largest regional market and growth is being driven by preference for snacking over daily meals, busy schedules, and growing availability of healthy options. The rise in obesity in the US is motivating consumers to select a low-calorie snack compared to the traditional one. The Middle East, Latin America, and Asia-Pacific offer potential growth opportunities in view of the rising disposable incomes and the booming retail sector.
Confectionery Segment to Reach $151.8 Billion by 2026
The growing demand for functional snacks including confections supports growth in the Confectionery segment. Considered as fun foods, the easily available confections and snacks are widely consumed. With the proportion of population becoming health conscious increasing rapidly, the demand for functional snack foods is rising. In the global Confectionery segment, USA, Canada, Japan, China and Europe will drive the 5.6% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$80.6 Billion will reach a projected size of US$118.1 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$16.5 Billion by the year 2026, while Latin America will expand at a 6.9% CAGR through the analysis period.
News Provided by Global Industry Analysts, Inc.