The extruded snacks market has witnessed significant growth in recent years, driven by changing consumer preferences, increased demand for convenient and ready-to-eat snacks, and innovations in snack production technology. Extruded snacks are produced through a process called extrusion, where ingredients are forced through a mold under high pressure and temperature to form various shapes. These snacks are typically light, crispy, and often flavored, making them a popular choice among consumers worldwide.
Market Valuation and Growth Rate
The global extruded snacks market was valued at approximately USD 34 billion in 2023 and is expected to continue expanding at a robust compound annual growth rate (CAGR) of 7.2% from 2024 to 2030. This growth is driven by several factors, including the rise of on-the-go snacking, a shift toward healthier snack alternatives, and the growing popularity of snack options that cater to diverse dietary needs such as gluten-free, organic, and low-calorie snacks.
One of the key drivers of market growth is the innovation in product offerings. Manufacturers are increasingly focusing on creating new and exciting flavors, incorporating healthier ingredients, and offering options with clean labels, which has been a trend in the snack industry at large. Additionally, the availability of extruded snacks in a variety of packaging sizes from single-serve packs to family-sized bags makes these snacks appealing to both individual consumers and larger households.
Competitive Landscape
The extruded snacks market is highly competitive, with numerous players operating at global, regional, and local levels. Key players in this market include large multinational companies like PepsiCo (with its Lay’s and Cheetos brands), Kellogg’s (Pringles), and General Mills (Chex and Bugles), alongside smaller, specialized companies that focus on healthier and organic snacks. These companies have adopted various competitive strategies to maintain and increase their market share.
Some of the primary competitive strategies include:
Product Innovation: Leading companies continually introduce new flavors, ingredients, and formats to meet the growing consumer demand for variety. For example, manufacturers are experimenting with plant-based ingredients, high-protein formulations, and snack options catering to specific dietary needs such as keto or vegan diets.
Geographic Expansion: Companies are expanding their presence in emerging markets, particularly in regions like Asia-Pacific, Latin America, and the Middle East, where urbanization, increasing disposable income, and a growing middle class are driving the demand for processed snacks.
Branding and Marketing: Strong branding and marketing campaigns are essential for capturing consumer attention in a crowded market. Companies are leveraging social media, influencer partnerships, and advertising to create brand loyalty and differentiate their products.
Sustainability Initiatives: As consumers become more environmentally conscious, many snack manufacturers are focusing on sustainable sourcing of ingredients and eco-friendly packaging. This move aligns with broader global sustainability goals and appeals to environmentally aware consumers.
Demand Projections
The demand for extruded snacks is expected to continue its upward trajectory, with a few key trends influencing future growth:
Health Consciousness: There is a growing demand for healthier snack alternatives, and consumers are becoming more aware of the nutritional content of the snacks they purchase. As a result, the extruded snacks market is seeing a rise in demand for products made with whole grains, high-fiber ingredients, and reduced levels of salt and artificial additives.
Convenience and On-the-Go Snacking: The busy lifestyles of modern consumers, particularly in urban areas, are boosting the demand for convenient snack options that can be consumed on the go. Extruded snacks, with their portability and ease of consumption, are well-positioned to capitalize on this trend.
E-commerce Growth: The shift toward online shopping has also impacted the extruded snacks market, with many consumers opting to buy their favorite snacks through e-commerce platforms. This trend is expected to grow, particularly in regions where online retail penetration is still increasing.
In conclusion, the extruded snacks market is poised for continued expansion, driven by innovations in product offerings, competitive strategies from leading players, and changing consumer preferences. As the market evolves, demand will be influenced by factors such as health trends, convenience, and sustainability, which will shape the competitive landscape in the coming years.
