LONDON — The global baked savory snacks market is expected to grow at a compound annual growth rate of 4.15% between 2016-20, driven by stepped-up demand from health-conscious consumers, according to “Global baked savory snacks market 2016-2020,” a new report from London-based market research firm Technavio.
“The growing popularity of breakfast savory biscuits coupled with promotional activity, distribution and marketing is translating into sales,” said Manjunath Reddy, a lead food research analyst at Technavio. “Baked savory biscuits are the perfect substitutes for chips, as baked products are considered healthier than fried products.”
Technavio said innovations by two of India’s largest biscuit manufacturers — Britannia and Parle — in the savory biscuits category will fuel growth in India during the forecast period. India is the largest biscuit consuming country in the world, according to Technavio.
The global baked extruded snacks market is expected to grow at a CAGR of 4.26% during the forecast period, Technavio said. Available in different sizes, shapes and colors, baked extruded snacks’ appearance, flavors and packaging are key differentiators for consumers.
Technavio said the availability and low cost of ingredients have helped baked extruded corn snacks manufacturers to invest heavily in expanding the product segment. As an example, the research firm pointed to Puffcorn, a corn meal-based extruded snack that has performed well in the market and is made by companies such as Frito-Lay, Inc.
Indulgence in baked extruded rice snacks also is high, Technavio said. The research firm said nutrition is the key reason behind the consumption of baked extruded rice snacks, as the snacks are made with natural ingredients and do not contain artificial flavors or gluten.
“The increasing availability of small stocking units in the developing countries in the extruded snacks category will fuel the growth during the forecast period,” Mr. Reddy said. “The lower priced packs are consumed as impulse products and widely available in traditional grocery outlets and kiosks.”
Another category to watch is the global ready-to-eat popcorn market, which Technavio has projected to grow at a CAGR of 4.32% between 2016-20.
According to Technavio, several vendors have entered the market and the existing vendors have expanded their offerings under the R.-T.-E. popcorn category to capitalize on convenience and taste. Vendors in the R.-T.-E. popcorn market include Quinn, 479 degrees, Angie’s Boomchickapop and Skinny Pop.
In addition to taste, R.-T.-E. popcorn vendors are focused on packaging to attract customers. For example, Rob’s Brands’ Sexy Pop has a vibrant packaging that often attracts the customers to buy impulsively, Technavio said.Technavio said the growing varieties and flavors such as caramel, cashew, cheese and beer will drive sales in the market. Specifically, rising interest in ethnic and exotic flavors will compel vendors to experiment with interesting and innovative flavors, the research firm noted. Popcorns are being offered in new packaging such as plastic bottles and cans by vendors such as Finger Foods and Crazy Foods to make them more appealing and thus increase sales. Changing consumer lifestyles and the resulting shifts in consumption patterns are also important market drivers.