Baked Savory Snacks Market Size, Share and COVID-19 Impact Analysis, By Product (Chips & Crisps, Nuts & Seeds, Popcorn, and Others), By Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores, Online Retail, and Others), and Regional Forecast, 2022-2029

The global baked savory snacks market size was valued at USD 46.50 billion in 2021. The market is projected to grow from USD 49.23 billion in 2022 to USD 75.83 billion by 2029, exhibiting a CAGR of 6.37% during the forecast period. Asia Pacific dominated the baked savory snacks market with a market share of 35.81% in 2021.

The global COVID-19 pandemic has been unprecedented and staggering, with baked savory snacks experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 4.77% in 2020 as compared to 2019.

Baked savory snacks consist of salty and flavored snacks. It includes a variety of chips & crisp, nuts & seeds, and popcorn, among others. Such products are entirely baked and considered healthy since they entail less oil and butter usage. The demand is increasing due to several benefits, such as high energy, providing extra nutrients from a snack, namely nuts & seeds, and snacks that curb appetite to prevent overeating the next meal. Innovation of newly baked products and an increase in demand for multigrain chips are other significant factors driving the growth of the market. For instance, in December 2018, the Guilt Free Industries Limited brand Too Yumm! introduced its most recent snack product range – Karare, its USP being it is baked, not fried. Hectic lifestyles and rising urbanization are impacting consumers' daily eating habits, progressively substituting main meals with more light, convenient, and flexible snacking options, thereby boosting the baked savory snacks market growth.

COVID-19 IMPACT

Increased Retail Sales of Baked Savory Snacks during COVID-19 Favored Growth

The outbreak of COVID-19 and the subsequent measures imposed by several governments have resulted in the market's strict closure, resulting in social distancing among consumers. Consumers prefer to stock up on essential foods at home, particularly snacks such as these baked savory snacks. Baked snacks are a staple of convenient and on-the-go snacking. As a result, sales were average in 2020 when the COVID-19 pandemic curtailed activities and prompted many people to stay home. However, the snack category had a resurgence in 2021, as limitations were eased and individuals resumed their regular activities. The companies operating in the market also saw growth in their revenue during the lockdown period. For instance, Grupo Bimbo states that 42% of consumers were snacking more in quarantine and 33% were buying more savory snacks.

However, the growing consumer preference for healthy food products even after the pandemic is likely to fuel the demand for healthy efficient snack items. The growing concern over health and well-being has propelled the rising trend of items with functionally-specific health advantages.

LATEST TRENDS

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Rising Trend of Healthy Grain Snacks to Boost the Market Growth

There is a growing interest in the consumption of ancient grains as they provide health benefits that increase the consumer inclination toward grain consumption. Different grains, such as malt and whole grains, are increasingly used in snack products. Upsurge in healthy eating patterns owing to the consumption of whole grains snacks is propelling the market growth. Consumers are trying to consume more whole grains. Whole grain snack food is considered to lower the risk of developing cancer and diabetes as whole grains comprise dietary fiber, protein, vitamins, and magnesium.

Moreover, the manufacturers launched new products that use grain ingredients in their snacks. For instance, in September 2020, Ka-Pop! Snacks launched ancient grain puffs, and product distribution continues to increase across the U.S. and into international markets. All such factors are expected to witness strong gains in the global market.

DRIVING FACTORS

Increasing Consumer Inclination toward Baked Foods to Propel the Market Growth

Increasing consumer preference toward baked food over fried food is a significant factor contributing to the market growth. Moreover, baked foods are considered low-cholesterol foods when compared to their counterparts – fried foods.

Furthermore, fried snacks lose all nutrients due to frying the product at high temperatures. With an increase in demand for healthy food products, there is a major shift in the dietary patterns of consumers. Nowadays consumers prefer health-based baked snacks that can help maintain good health while enjoying the taste and convenience. Therefore, baked snacks are considered healthier and more nutritious than fried snacks. Furthermore, a number of consumers are willing to spend more on healthy snack products. Hence manufacturers focus on the launch of new products to meet the consumer demand for baked savory snacks. For instance, in January 2022, Cornitos, a nachos brand, expanded its product portfolio with baked snacks. The new range contains delicious flavors and nutritious ingredients such as beans, chickpeas, and potatoes.

Rising Demand for Healthy Snacking Habits Among Consumers to Fuel the Market Growth

The demand for healthy food products is rapidly increasing due to the availability of various snacks with different flavors and a significant shift in consumers' eating patterns. Nowadays, consumers prefer healthy snack products, which can help them maintain good health while enjoying the taste. Moreover, the demand for low-calorie, low-fat, gluten-free, whole wheat snacks such as savory snacks and bakery products with no artificial preservatives and flavors is driving the market among the working millennial population. Products such as roasted vegetable chips, roasted pita chips, and healthy muesli bars are a great source of fiber that helps in weight loss making the person feel fuller for a long time. Hence, all the factors mentioned above help to create opportunities for consumer inclination toward healthy snack products in the market.

Moreover, the manufacturers are launching new developments in the market. According to the Food Standards Agency (FSA) 2019, the vegan population in the U.K. market is increasing in 2019, thereby increasing the demand for vegan snacks.

RESTRAINING FACTORS

Low Market Penetration in Developing Countries Hampers the Market Growth

In baked savory snacks, the market penetration is low, especially in developing countries, due to the lack of manufacturing facilities, and the high price of the baked savory snacks compared to the snack substitute products. The consumer purchases daily baked, fresh, unpacked snacks. Therefore, they don't prefer to purchase packaged baked products. Various manufacturing companies claim to provide nutritious and healthy bakery products. However, consumption of these products is more commonly associated with the rising rate of obesity and chronic diseases such as cardiovascular disease and cancer. This factor has negatively impacted the sales of baked savory snack products. Additionally, the price of baked savory snacks fluctuates due to the high dependence on climate for the production of key bakery ingredients. An increase in temperature, excess heat, heavy rainfall or flood, and extreme weather conditions might impact the yield and quality of the various crops, leading to price fluctuations and poor investment returns. Hence, low market penetration in developing countries and price fluctuation of raw materials hamper the market growth.

SEGMENTATION

By Product Analysis

Chips & Crisps Segment Holds the Largest Share Due to High Demand for Ready-to-Eat Snack Products

By product, the market is classified into chips & crisps, nuts & seeds, popcorn, and others. The chips & crisps segment accounted for holding a significant market share owing to the rising demand for low-sodium, low-calorie, gluten-free, and fat-free snacks among consumers. Furthermore, the launch of novel products in categories such as vegan, kosher, and non-GMO is also boosting the growth of the snacks industry, thereby fueling the market growth. Manufacturers are focusing on introducing new flavors and spices in salty snacks, which is expected to impact the segment growth positively. For instance, in March 2022, MicroSalt Inc. announced the expansion of its SaltMe Potato chips distribution channel. The product will be distributed through more than 1400 Kroger grocery stores. This breakthrough is essential in the company's mission to provide healthier, full-flavored snacks that contain 50% less sodium to help people promote better cardiovascular health.

The nuts & seeds segment is expected to record robust growth owing to the growing health consciousness among consumers since they are a good source of various nutrients such as protein, vitamins, fibers, and others, thus giving rise to healthy snacking habits.

By Distribution Channel Analysis

Supermarkets & Hypermarkets Segment to Hold Major Market Share Owed to a Wide Variety of Products

The market is classified into convenience stores, supermarkets & hypermarkets, online retail, and others based on distribution channel. Supermarkets & hypermarkets have become the utmost choice of consumers as it offers a substantial variety of products, extending from food & beverages to consumer goods, under a single shell. In addition, supermarkets are considered a convenient food option for purchasing frozen or fresh products as they can be easily stored, thus contributing to maintaining their quality attributes. Products such as nuts & seeds and baked chips are the most common, which are highly preferred and easily available in retail channels. In addition, supermarkets & hypermarkets have different options, which help the consumer get various products. Thus, consumers are highly inclined toward purchasing such products from the retail channels, attributed to the surety of their overall quality. 

REGIONAL INSIGHTS

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Asia Pacific to Exhibit Largest Share Due to Increased Consumption of Baked Snacks Products

The market is analyzed across Europe, North America, South America, Asia Pacific, and the Middle East & Africa. The Asia Pacific accounted for the major baked savory snacks market share due to rising healthy snack production in India, China, Japan, and Australia. In addition, consumers in Asian countries are gradually becoming health-conscious, resulting in high demand for sugar-free snack food products. Consumers have diverse interests and tastes and want to experiment with renowned products. Therefore, manufacturers are constantly expanding and innovating their product portfolio to meet the dynamic needs of consumers. For instance, in February 2022, Dabur India expanded its Real Health sub-brand with additional product launches. The company also planned to launch value-added party snacks and dried fruit under Real Health. Moreover, the rise of healthy living trends in Japan and China increased the demand for gluten-free products, thereby propelling the demand.

The North America market is projected to exhibit a significant proportion of the global market due to the increasing trend of on-the-go consumption, and replacing meals with smaller nutritional snacks propels the market.  

Europe is considered a key region since several leading global manufacturers are based in Germany, Switzerland, the U.K., and France. Europe is one of the prominent producers as well as the largest consumer of snack food products globally. Snacking on social occasions or on the go is common in European countries, but more consumers are opting for healthier snacking options. Healthier snacks are considered valuable and beneficial to a healthy diet, usually taken between meals are the largest market for organic and natural snacks.

South America and the Middle East & Africa are also expected to grow in the upcoming period. The rising trend of natural nutrition and high-protein diet in South America has significantly influenced the industry in the region. Manufacturers and processors are focused on introducing a variety of baked products, such as gluten-free, sugar-free nuts, chips, and others, to fulfill the modern consumer demand for healthy, protein-rich product options in the market.

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Due to excessive consumption of sugary & sweet food products, consumers nowadays suffer from health issues such as obesity, diabetes, and fatty liver disease. Hence, to encourage dietary food consumption, the Saudi Arabian governmental agency and Gulf Cooperation Council (GCC) are introducing various measures such as voluntary sugar reductions, first-of-page nutrition labeling, and taxes on sugar-sweetened beverages.

KEY INDUSTRY PLAYERS

Key Players Strongly Focus on Product Innovation to Strengthen Market Growth

The key players in the market focus on manufacturing more products in different regions. Moreover, companies are launching new innovative products to have a first-mover advantage in the market and have more consumer attention. The new launch and wide product portfolio will enable key players to respond to recent baked savory snacks market trends, gain a competitive advantage, and enter new markets. New product launches in the healthy snacks category will be a key factor driving product sales and influencing market dynamics growth during the forecast period. For instance, in October 2022, Kellogg Co. introduced two fresh fruit and vegetable breakfast bars and new snacks. The new soft-baked breakfast bars are made with fruit and vegetable flavors and are available in strawberry, apple, and carrot flavors.

LIST OF KEY COMPANIES PROFILED:

• General Mills Inc. (U.S.)


• Kellogg's Company (U.S.)


• Orkla ASA (Norway)


• Consolidated Biscuit Co. Ltd (Malta)


• Europe Snacks (France)


• PepsiCo, Inc. (U.S.)


• Chaucer Foods Ltd. (U.K.)


• Lorenz Bahlsen Snack-World GmbH & Co KG Germany (Germany)


• Hain Celestial (U.S.)


• Amplify Snack Brands Inc (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2021 - Poppy, the popcorn brand, introduced four new flavors in its BBQ series. These flavors include honey BBQ popcorn, Carolina vinegar-based popcorn, Kansas City BBQ, and Texas BBQ popcorn. The company launched new flavors and expanded its snacks product portfolio, consequently strengthening its consumer base.


• October 2021- Bauli, an Italian bakery brand, entered the Indian savory snacks market under the name BauliSavoriz. The company offers products such as rolls, puffs, and many more. Baked snacks are one of the most popular snacks among Indian consumers, creating an opportunity for the company to develop new products and identify new markets for business expansion all over India.


• July 2021- PepsiCo increased its healthier snacking portfolio in Europe. The company increased sales of snacks rated b or better by Nutri-score tenfold. The company diversified its snack portfolio to include healthier options such as pop works and its newly-launched popcorn crisps range.


• May 2021- Mondelez International acquired Greece-based snacks maker Chipita for a consideration of approximately USD 2 billion. Chipita's products were manufactured across 13 facilities and delivered to more than 50 countries. With this acquisition, Mondelez International aims to further enhance its bakery portfolio by adding products such as biscuits, cakes, and pastries.


• September 2022 - The Kellogg Company partnered with Mackie Foods Corporation for introducing Kellogg's Little Debbie Nutty Buddy Cereal. It is the third collaboration with the Chattanooga, Tennessee-based snack company. The new granola features lightly toasted peanut butter flavors, chocolate, and fudge-covered granola chunks. This helped the company to increase its product portfolio.

REPORT COVERAGE

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The research report includes quantitative and qualitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible market segments. The report presents various key insights: an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

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