Savoury snacks market to hit $183.8 billion by 2023

The global savoury snacks market is expected to rise in value from $156.3bn in 2020 to $183.8bn by 2023, following similar growth patterns to pre-COVID-19. The same cannot be said for global volumes, which will see growth potential slow significantly over the coming years as a result of difficult economic conditions and damaged consumer confidence during the pandemic, according to GlobalData, a leading data analytics company.

GlobalData’s “Sector Landscapes: Savory Snacks” report reveals that savoury snacks market volume in 2020, which is expected at 14.7 billion kilograms, will see 5.2% slower growth when compared against pre-COVID forecasts. This is largely due to higher unemployment rates and salary cuts.

Ramsey Baghdadi, Consumer Analyst at GlobalData, comments: “The savoury snacks sector will see growth at a slightly slower rate than expected prior to the COVID-19 pandemic, especially in terms of volume. As producers of indulgent items, the industry is expected to find long-term challenges with consumers who continue to stop buying these items due to budget constraints.

“Meanwhile, COVID-19 shows limited impact on savoury snack brands’ value growth, as savoury snack companies continue to launch premiumization strategies to differentiate from competitors, despite pandemic conditions.”

The report also explains how consumer attitude has changed during COVID-19. A total 29% of respondents interviewed during lockdown claimed that they intend to buy fewer savoury snacks than before the pandemic. This purchase shift highlights the budget constraints from consumers with low income, which a higher proportion (34%) intend to buy less savoury snacks compared to high-income consumers (26%).

There are savoury brands that are taking advantage of the new conditions and change of consumer attitudes by adapting products to align with consumer preferences. PepsiCo saw 3% organic volume growth, which it pointed towards more consumers spending more time at home.

Baghdadi comments: “As demonstrated by PepsiCo, larger pack sizes have been a particular interest to consumers in North America, where organic sales have increased. This poses an opportunity for brands in the sector to capitalize on at-home snacking by increasing production of larger pack sizes to closely align with evolving consumer demands for products more suitable for less on-the-go occasions.”

Long-term, competition between savoury snacks will indeed become more saturated, due to the level of sector impact form COVID-19, however, there is still opportunity for companies to boost performance standards by quickly adapting to the ‘new normal’ consumer lifestyle and spending habits.