CHICAGO -- The replacement of meals by snacks is a major trend, with a growing number of breakfast skippers being large target audiences for this market, according to the Global Savory Snacks Market 2015-2019 report by Sandler Research, Chicago.
In addition, the increasing consumption of snacks for social gatherings and celebrations has become a trend in the market
And the inclusion of different ingredients in different snacks categories has affected the product choice of consumers.
The analysts forecast global savory snacks market to grow at a compound annual growth rate (CAGR) of 4.34% to reach $125 billion over the period from 2014 to 2019.
To calculate the market size, the report considers revenue generated through the retail sales of various savory snacks, including potato chips, extruded snacks, nuts and seeds, traditional snacks, popcorn, pretzels, meat snacks and other savory snacks.
The growing organized retail business has also contributed significantly to the market growth. For instance, Walmart accounted for the largest established retailer in North America and has contributed around 12% of PepsiCo's net revenue in this region.
Potato chips were the largest contributors to the global sales of savory snacks and are expected to lead the global market until the end of the forecast period. This segment is expected to reach approximately $36 billion by the end of 2019. The increasing per-capita consumption in the developed regions like North America and Europe is driving the growth of this segment.
According to the report, the Asia-Pacific region was the second largest and will grow at the highest CAGR during the forecast period. This region is likely to chase North America in the near future. Japan, China, and India are the three major markets in this region. The growing of the middle class along with their increasing disposable income is the major market growth driver.
Their snacks are made with different flavors to capture the region's specific taste preferences. The global savory snacks market is highly fragmented due to the presence of large and small vendors. During 2014, the leading vendors contributed nearly 30% of the global revenue.
Sandler Research predicts that the market will witness a number of mergers and acquisitions during the forecast period.
Further, the savory snacks market report said that the major obstacles faced by the leading players include global assortment and distribution. With the presence of many local and regional players the competition is very high in some regions. An increasing obese population is also a concern for this market.
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