With growing economies and rapidly changing lifestyles, busy consumers are increasingly opting to snack more often than usual to get a quick energy boost. This scenario is a predominant factor driving growth in the sector. Improving consumer confidence across high-potential countries such as the US, China, and India suggests consumer readiness to spend on convenience, benefitting ready-to-eat foods such as savory snacks.

Latest Developments

• The number of single households worldwide is rising and brands such as Pringles and Cheez-it have capitalized on this by offering single-serve formats to capture the potential consumer base.
  
• The rising demand for healthy and natural products is prompting companies to strategize accordingly. Hershey’s acquisition of Amplify Snack Brands, which makes SkinnyPop popcorn (claimed to be made with natural ingredients), is an example of how companies are striving to capitalize on the demand for healthy snacks.
  

Future Inhibitors

• The rising obesity rates across the globe are prompting governments to introduce stringent rules on ingredients used in food products. Consequently, brands failing to reformulate could lose their competitive edge as consumers switch to healthier alternatives.
  
• Regulatory authorities across the world are striving to promote sustainable practices, especially with reference to package materials. Failure to demonstrate sustainability could impact a brand’s reputation, with eco-conscious consumers more than ready to boycott such products.