Industry Insights
The U.S. savory snacks market size was valued at USD 33.26 billion in 2017. Changing taste preferences of younger generation is expected to contribute to market growth. Manufacturing companies are trying to edge over their contemporaries through innovation as well as catering to needs of health conscious customers with introduction of gluten-free, low-calorie, and low-fat products. Young generation is inclining towards snacks in between meals to get energy and satisfy cravings. Savory snacks are enjoyed on various occasions by all age groups across the U.S.
U.S. Savory Snacks market revenue split, by type, 2017 (% share)
Rise in per capita income of the populace has enabled them to spend more on healthy and tasty food items. Working population of the country is largely consuming ready to eat meals on account of hectic lifestyles. Therefore, savory snacks are emerging as go to for working population to satisfy short hunger. Economic developments are likely to result in improved living standards and high consumer spending on healthy and sophisticated food items.
The market is marked by presence of a large number of players offering a wide variety of flavors. Fluctuating prices of raw materials coupled with consumption of alternative products such as bakery products, fresh fruits, and juices are estimated to inhibit the growth of the market. On the other hand, growing inclination toward organic products is likely to shape the future of the industry. Technological innovations in manufacturing processes are also estimated to create tremendous growth opportunities for the market.
Segmentation by Type, 2015 - 2025
• Potato chips
• Processed chips
• Nuts & seeds
• Meat snacks
• Others
Based on type, the U.S. savory snacks market is segmented into potato chips, processed chips, nuts & seeds, meat snacks, and others. In 2017, the processed chips and potato chips segments dominated the market. This trend is anticipated to continue over the forecast period. Nonetheless, the meat snacks and nuts & seed segments are likely to register noteworthy CAGRs during the forecast period owing to their growing popularity.
Population between age group of 10-25 years are the leading consumers of savory snacks in the country. In addition to this, product innovations are catering to consumer needs in appropriate ways. A high percentage of population is interested in exploring and experimenting with taste and thus, inclined towards purchase of a different variety of snacks every time. This trend is poised to work in favour of the market.
Segmentation by Distribution Channel, 2015 - 2025
• Online
• Offline
Based on distribution channel, the U.S. savory snacks market has been divided into online and offline distribution channel. Offline channels include hypermarkets, supermarkets, departmental stores, and specialty stores. Offline distribution channel held for the leading share in the overall market, owing to presence of abundant retail stores in the country.
Online distribution channel is projected to progress at a faster pace during the forecast period. The growth of the segment can be attributed to high mobile and internet penetration in the country. Shifting preference of consumers towards towards online shopping is estimated to augur well for the market.
Competitive Landscape
The U.S. savory snacks market is characterized by presence of a large number of key players who are engaged in manufacturing and distribution of the product. Some of the prominent players operating in the industry are PepsiCo Foods; McCain Foods; Lamb Weston Holdings, Inc.; Kellogg Co.; and Calbee North America. Well-established manufacturers are focusing on increasing production capacity of manufacturing plants. Introduction of latest technologies is helping manufacturers to reduce cost and time required during the production processes.
Fluctuating consumer habits and low customer loyalty in the industry are expected to work to advantage of new entrants. Availability of a large number of alternatives for the same product category has rendered the nature of the market highly competitive. Industry players are undergoing various mergers and acquisitions with local players to reach untapped zones in the country. Global players are integrating with local vendors for expansion of their distribution channels.
