Global snack food sales increase to $374bn

A Nielsen global report has revealed that consumers across the globe spent a total of $374bn on snack foods annually between 2013 and 2014.

The industry has seen an overall year-over-year increase of 2%. Europe and North America are the biggest spenders, with the two countries recording sales of $167bn and $124bn, respectively.

The demand for snacks is also witnessing an increase in regions such as Asia-Pacific ($46bn) and Latin America ($30bn). Sales in the Middle East / Africa ($7bn) grew by 5%.

More than 30,000 online consumers from 60 countries took part in the poll, which was conducted to find out the most popular snacks around the world and the reasons for the selection of these products.

Nielsen Global Professional Services executive vice-president Susan Dunn said: "The competitive landscape in the snacking industry is fierce. Demand is driven primarily by taste and health considerations and consumers are not willing to compromise on either.

"The right balance is ultimately decided by the consumer at the point of purchase. Understanding the ‘why before the buy’ provides the foresight necessary to deliver the right product to the right consumer at the right time."

The confectionery industry, which includes sweets such as chocolate and gum, recorded the biggest sales of approximately $46.5bn in Europe.

Sales of dips and spreads such as salsa and hummus saw an increase of 6.8% in Europe. Savoury snacks including crackers, rice cakes and pitta chips increased 21% in Latin America. Meat snacks, which include jerky and dried meat, rose by 25% in the Middle East / Africa and 15% in North America, while refrigerated snacks including yogurt, cheese snacks and pudding rose 6.4% in Asia-Pacific.

Dunn added: "Non-sugary snacks closely aligned with meal-replacement foods are showing strong growth, which signals a shift in a consumer mind-set to one focused on health.

"While conventional cookies, cakes and confections categories still hold the majority of snack sales, more innovation in the healthy snacking and portable food space is necessary to adjust to this changing dynamic."

Approximately 76% of those surveyed said they ate snacks often or sometimes to satisfy hunger between meals or to satisfy a craving, while 45% of global respondents consume snacks as a meal alternative. Around 52%, 43% and 40% substituted their breakfast, lunch and dinner respectively with snack items.

The study also suggested that more people care about the absence of ingredients than the addition of them. Snacks with all-natural ingredients were rated important by nearly 45% of respondents. The absence of artificial colours (44%), genetically modified organisms (43%) and artificial flavours (42%) are also rated as very important.

Around one-third and one-fourth of respondents considered caffeine-free and gluten-free snacks important. Consumers also felt it was important for snacks to have less sugar, salt, fat and calories. Almost one-third also wanted low or no carbohydrates content in their snacks, while one-third wanted their snacks to have beneficial ingredients such as fibre, protein and whole grains.

Many consumers also want their snacks to come from sustainable sources with organic and local herbs included.

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Image: The confectionery industry recorded the biggest sales of approximately $46.5bn in Europe. Photo: courtesy of Stuart Miles / freedigitalphotos.net