Studies reveal emerging global snacks markets gearing up for high growth trend
Snack sales are expected to grow four times faster in emerging markets than developed countries over the next five years, according to global market research company Euromonitor International.
In a new webinar, “Where Do We Go from Here? The Future of Snackification Beyond 2020,” Euromonitor International examines short-, mid- and long-term implications on snacking amid COVID-19.
Lack of mobility defined snacking occasions during the height of the pandemic, but portability will regain importance in the long run. With 20% longer commutes on average than in developed countries, emerging markets will drive growth, recording an expected 14% increase in snack sales through 2025, according to Euromonitor International.
“As economies reopen, product features that were deprioritised will resurge,” said Jared Koerten, food and nutrition industry manager at Euromonitor International.
The number of online stock-keeping units (SKU) across snack categories saw a drastic decline in early 2020 and remains significantly lower than pre-pandemic, according to Euromonitor International’s pricing intelligence solution Via.
“SKU rationalisation poses a threat to innovation mid-term, as manufacturers streamline portfolios and focus on essential product lines,” said Koerten. “For an industry that historically relied on product launches, from new flavors to licensing deals, to grow sales, innovation will take a new meaning moving forward.”
Despite such challenges, as Confectionery Production has previously reported, there has been growth particularly in the organic snacks segment, as consumers try to reconcile their busy lives with staying healthy. Snacks play a crucial role, as they can provide useful nutrients for increasingly on-the-go lifestyles.
According to a report on the Global Organic Snacks Market published by KBV Research, the global organic snack market is expected to generate USD 23.7 billion by 2025, representing market growth of 14.09% CAGR over the forecast period. The Euromonitor webinar on snackification and beyond can be accessed here.