Snack Pellets Market Drivers and Forecasts by 2030

[Research Report] The snack pellets market size is projected to grow from US$ 7,228.70 million in 2022 to US$ 9,935.20 million by 2030; the market is expected to register a CAGR of 4.1% from 2022 to 2030.

Market Insights and Analyst View:

Snack pellets are non-expanded products made from raw materials including potato, corn, rice, tapioca, multigrain, and others. These pellets are produced dried and semi-processed for easy storage and shipment. These semi-processed products are sold to snack manufacturers, where they are further processed by various methods such as frying and hot air baking. The demand for snack pellets is attributed to rising demand for convenience food products and increasing adoption of advanced technologies in snack pellet manufacturing. Thud, increasing demand for snack pellets expected to drive the snack pellets market growth.

Growth Drivers and Challenges:

Ready-to-eat (RTE) snacks are also witnessing massive demand, especially among working professionals, due to the rising snacking trend in corporations. Small coffee and snack breaks to relieve work stress drive the demand for RTE snacks. Light snacks such as popcorn, chips, and puffs are popular among the younger population and children. Thus, the rising popularity of RTE snacks among consumers and growing innovations drive the global snack pellets market. Moreover, extrusion technology, a crucial process in snack pellet production, has evolved, enabling manufacturers to create diverse snack products with improved quality, texture, and taste. These technological advancements have increased production efficiency and facilitated the creation of innovative and appealing snack options, catering to the changing preferences of consumers. Thus, introducing twin-screw extruders, integrating 3D printing, and adopting intelligent controls and automation boost the production of a diverse range of snack pellets, fueling the global snack pellets market growth. However, fluctuations in the prices of key raw materials, such as grains and pulses, can directly impact the cost structure of snack pellet manufacturers. Since snack pellets rely heavily on these raw materials, any substantial cost increase can lead to escalated production expenses. Thus, the increased cost of production hinders the global snack pellets market growth.

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Snack Pellets Market: Strategic Insights

Report Segmentation and Scope:

The “Global Snack Pellets Market” is segmented on the basis of source, type, form, and geography. Based on source, the snack pellets market is segmented into potato, corn, rice, tapioca, multigrain, and others. Based on type, the market is bifurcated into flavored and plain. In terms of form, the snack pellets market is segmented into laminated, die face, tri dimensional, and others. The market based on geography is segmented into North America (thee US, Canada, and Mexico), Europe (Germany, France, Italy, the UK, Russia, and the Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific), Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America).

Segmental Analysis:

Based on source, the snack pellets market is segmented into potato, corn, rice, tapioca, multigrain, and others. The potato segment holds a significant share of the market. The demand for potato snack pellets is upsurging among snack manufacturers due to their widespread appeal, comfort food status, and consistent consumer demand for potato-based snacks. These pellets can be fried or baked to create a crispy and tasty snack. Manufacturers demand potato snack pellets as consumers prefer potato snacks due to their familiar taste, texture, and versatility in flavoring. These factors are expected to boost the segment’s share.

Regional Analysis:

Based on geography, the snack pellets market is divided into five key regions: North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa. The global snack pellets market was dominated by Asia Pacific; the market in this region was valued at US$ 3472 million in 2022. North America is the second major contributor to the market, which holds almost 25% of the global market. South & Central America is expected to register a CAGR of 5.1% in the snack pellets market during the forecast period. The snack pellets market growth in the region is attributed to the rising demand for convenience food, increasing adoption of advanced technologies in snack pellet manufacturing, and rising development in the food processing industry in economies such as China, India, and Indonesia. Increasing hectic lifestyles, extended work hours, and a rising number of dual-income households have contributed to the growth of packaged food such as chips and popcorn. These factors are expected to boost the demand for snack pellets in Asia Pacific.

Moreover, Europe is one of the most significant regions for the snack pellets market. In Europe, potato-based snack pellets are widely preferred by consumers. Additionally, corn-based snack pellets are expected to gain popularity due to the introduction of new recipes focused on corn-based ingredients. The growing consumption of convenience food and the introduction of new flavored snacks are the major factors expected to boost the demand for snack pellets in the region.

Industry Developments and Future Opportunities:

Various initiatives taken by key players operating in the snack pellets market are listed below:

1. In September 2022, Pringles, a snack brand of Kellogg Company, launched multigrain and sweet potato crisps with non-HFSF (non-high in fat, sugar, and salt) claims. These crisps are made of wheat, barley, black beans, and sweet potato, which are great sources of fiber, protein, and good carbs and are available in innovative flavors such as Sea Salt, Smoky BBQ, Homestyle Ranch, and Farmhouse Cheddar.
2. In June 2022, GEA Group developed a new snack format called “Cinderella’s Slippers," a snack pellet shaped like a slipper. The new format is developed to meet the challenge of dipping the snacks in the sauce without getting the fingers coated.
3. In 2022, LENG-D'OR SAU, a Spain-based snack pellet manufacturer, announced its capacity expansion in Spain and the US to reach more than US$ 338.95 million per year.

COVID-19 Impact:

The COVID-19 pandemic affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific (APAC), South & Central America (SAM), and the Middle East & Africa (MEA) hampered the growth of several industries, including the food & beverage industry. The shutdown of manufacturing units disturbed global supply chains, manufacturing activities, delivery schedules, and essential and nonessential product sales. Various companies witnessed delays in product deliveries and a slump in sales of their products in 2020 which is negatively impacted the snack pellets market.

During the COVID-19 pandemic, operations and processes were halted across the globe due to the shortage of workforce and limited supply of raw materials. However, in the wake of pandemic, the demand for healthy snacking options increased significantly as consumers focused on their health and overall wellness. Therefore, manufacturers focused on launching new products with various nutritional claims such as organic, gluten-free, high-protein, soy-free, genetically modified organisms (GMO)-free, and allergen-free. Rising this trend in pandemic positively influence the snack pellets market.

In 2021, various economies resumed operations as several governments announced relaxation in the previously imposed restrictions, which positively impacted the global marketplace. Moreover, manufacturers were permitted to operate at full capacity, which helped them overcome the demand and supply gap.

The regional trends and factors influencing the Snack Pellets Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Snack Pellets Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Snack Pellets Market Report Scope

Snack Pellets Market Players Density: Understanding Its Impact on Business Dynamics

The Snack Pellets Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Competitive Landscape and Key Companies:

A few of the prominent players operating in the global snack pellets market are Bach Snacks SAL, Snack Creations Ltd, Balance Foods Inc, LENG-D'OR SAU, Quality Pellets AS, J.R. Short Milling Co, Le Caselle SpA, Mafin SRL, Noble Agro Food Products Pvt Ltd, and Societe Cooperative Agricole Limagrain. These market players adopt strategic development initiatives to expand, further driving the snack pellets market growth.