According to data analytics firm Euromonitor International, busier routines re-emerging post-pandemic have sparked demand for “more convenient nutrition solutions” such as snacking, be it for a satiating meal replacement or a treat during social gatherings.
Thank you for reading this post, don't forget to subscribe!“Healthy snacks have become a source of nutrition complementation, meal replacement, and satiation. Salty snacks and biscuits have been key beneficiaries given their lower price points and filling ingredients, such as fibre, protein and vegetables,” Carl Quash III, head of snacks at Euromonitor International, told FoodNavigator-Asia.
The firm’s Voice of the Consumer: Lifestyles Survey, fielded between January and February 2024, found that Singaporeans appreciate saving time even for dealing with their hunger.
“Twenty-eight percent of Singaporeans said that they do not have time to cook, while the APAC average of respondents who said so is 23%.”
In addition, Hong Kong saw the percentage of residents replacing meals with snacks rise from 6% in 2023 to 10.8% in 2024, the highest year-on-year increase among all countries included in the survey.
At the same time, one in seven adult residents in Vietnam and Thailand are substituting their daily meals with snacks.
Globally, respondents between the ages of 30 to 44 are the largest group to replace meals with snacks.
“This age group consists of the most working adults, and factors, such as hybrid work, create environments ripe for snacking habits to develop. Productivity, costs, and health are correlated to the performance of snacks and its ability to be utilised as meal replacers.
“Technology expansion, shifting demographics, and societal disruptions — first triggered by COVID-19 then the cost-of-living crisis — have also led to a dispersion of snacking occasions and locations, and motives to snack.”
For food and beverage companies, the shift in consumer behaviour presents an opportunity to “snackify” their offerings. For instance, “snacking occasions in between mealtimes” is an area that brands can tap into.
“In Singapore, Thong Siek Food Industry diversified from processed seafood (Dodo brand) into seafood snacks (Crusty’s), as the former’s performance was stagnating amid the latter category’s much stronger growth.”
India and Middle East
While many countries are experiencing growth, India showed a decline in the snacks category’s retail current value growth last year.
Nevertheless, the overall consumption of snacks in the country is still on the rise. In 2024, India had the highest percentage of people who replace meals with snacks at 18%.
“With the overall standard of living improving, coupled with growing aspirations, many are willing to try out new flavours, different textures, and a variety of products.
“However, consumers in India are focusing on the ingredients of their snacking choices due to increased health consciousness — on the back of heightened awareness of health benefits and long-term risks associated with a wide range of ingredients,” Quash III explained.
Notably, the Middle East and Africa region is said to be leading snacks growth with a forecast CAGR of 4.6%, which is higher than the 2.5% global average.
“Middle East consumers tend to be more value driven, with an affinity for premiumisation and branding. In addition, a large youthful population and ongoing urbanisation are boosting snacking.”
Categories with growth potential
Based on Euromonitor International data, each snacks category is witnessing an acceleration in forecast (2024-2029) value growth versus the historic period (2019-2023).
“In 2024, savoury snacks held a 35.1% share of global snack value sales in constant prices. Savoury snacks hold a historic rate of growth twice as fast as that of every other macro snack category. The higher growth rate for this category has been tied to its ability to deliver on multiple dimensions of value for consumers, such as a meal replacement during economic hardship
“Also, savoury snacks do not have the same limitations as other categories. For example, ice cream is confined by its limited consumption window — the time from freezer to mouth. R&D advancements have been made to slow the melt rate of ice cream, but the category remains less portable and flexible compared to savoury snacks,” he added.
Other snack categories, such as confectionery, still command their share of spending across markets, as they continue to be cherished during festive seasons and due to mounting desire for “treats and comfort” in challenging times.
“Confectionery, the second largest category with a 33.4% share, is gaining in the forecast period as price growth outpaces other snacks.
“It is worth noting that rising cocoa prices have persisted in 2024, and chocolate confectionery is expected to have a tough time, especially in the next couple of years, as product prices are expected to increase further. Leading companies are anticipated to strengthen their supply chains, including ramping up local production, to have greater control over margins.”