Market

Savoury snacks to grow in SEA

10:25 SGT June 12, 2017
Savoury
The global savoury snack market was also highly fragmented, with the top five brands — Lay’s, Doritos, Pringles, Cheetos and Ruffles — holding less than 16% of the combined market share last year.

Savoury snacks are finding favour with consumers the world over and the growth of this snack market is certainly assured, especially in developing countries such as China and India which have far lower per capita snack consumption levels than in the US or the UK.

Per capita consumption of savoury snacks is estimated by consumer insight firm Canadean at just 0.8kg in China and 1kg in India last year, compared with 9.5kg in the US and 7kg in the UK.

Overall, Canadean forecasts the global savoury snack market to rise from US$94.5 billion last year to US$138.2 billion by 2020, that is, at a compound annual growth rate (CAGR) of 7.9%.

Developing countries in the Asia-Pacific and Eastern European regions are expected to account for much of this increase, with CAGRs of 13.7% and 7.3%. There are, however, some regional differences in snack consumption, although innovation in flavours remains an important differentiating factor globally as consumers across all ages like new and unusual consumption experiences.
Canadean’s analysis revealed that in the case of the developed markets, consumers’ eating habits were affected by health and wellness trends. They based their snacking choices on nutritional value and quality. As such, they were expected to spend more on premium varieties of snacks.

On the other hand, consumers in emerging countries such as Brazil, China and India based their snack choices mostly on value and experimentation.

The global savoury snack market was also highly fragmented, with the top five brands — Lay’s, Doritos, Pringles, Cheetos and Ruffles — holding less than 16% of the combined market share last year.

Hypermarkets and supermarkets was the leading retail channel for savoury snacks across all regions, followed by convenience stores.

In terms of ethnic/traditional snacks, Canadean said that Bourbon Petit was one of the leading brands in this category in the Asia-Pacific region, with over 20% value share in
Japan.