Kraft-Heinz making bold investments in growing savoury snacks market

Credit: 1000 Words / Shutterstock.

Kraft-Heinz’s recent deal to conduct research on fermented ingredients with APC Microbiome allows the company to take up new, novel flavours and formulations that are likely to appeal to experimental consumers. It is smart for the company to outsource parts of its business model in this way, as it allows Kraft-Heinz to focus on improving its supply chain, which was majorly disrupted by Covid-19, as well as work on direct-to-consumer (DTC) channels.

Much like what’s happening in the pharma industry and the race for a vaccine, there’s also a race researching plant-based technology and with large companies like Kraft-Heinz and Nestle are keeping up a rapid level of expansion in this space. This move by Kraft-Heinz means less time will be wasted on internally led and potentially dead-end research.

Furthermore, by focusing on new innovations and sales strategies such as clean-label ingredient formulations and DTC channels, Kraft-Heinz will receive a much-needed competitive boost. With this collective push towards finding a disruptive product, the window to break into this highly competitive market is closing for larger and smaller players, alike.

With so many countries finding themselves back under lockdown conditions, consumers are bulk-buying savoury snacks and condiments as they would with essential items such as water and bread. Notably, forecasts reveal that the global savoury snacks market is expected to rise from $156.3bn in 2020 to $183.8bn by 2023, although growth will be slightly slower than initial pre-Covid-19 predictions due to continued economic pressure that has lowered consumer confidence.

Kraft-Heinz’ consumers are stockpiling non-perishable goods, particularly in the largest economic countries such as China and the US. At least *28% of consumers in the US have been buying more condiments and savory snacks since the onset of Covid-19, while these rates are slightly higher in China, standing at *33% and 29% respectively.

As a result of many foodservice chains shutting their doors, Kraft-Heinz is now looking to sell more products through business-to-business and DTC channels, as opposed to business-to-consumer. Although large divisions such as healthcare and public services will still require mass orders, the travel and tourism and restaurant sectors will be left out from Kraft-Heinz’s focus. Moreover, new products will be focused towards at-home consumption.

By focusing on ingredient and formulation innovations via the APC Microbiome partnership, the company is able to better align with strengthening demand for ‘clean’ and ‘safe’ products that will resonate with consumers during these trying times. It could be that by enabling larger brands to take up trends seen in the ‘new normal’, the company has been able to position itself in good stead to yield a significant edge over its smaller competitors on a local scale.

Latest reports from

• COVID-19 Impact on Kraft Heinz

Or to search over 50,000 other reports please visit

GlobalData Report Store

GlobalData is this website’s parent business intelligence company.