Snack Pellets Market Size, Share, Industry, Forecast and outlook (2024-2031)

Snack Pellets Market is Segmented By Type(Potato, Corn, Rice, Tapioca, Multigrain, Others), By Form(Laminated, Gelatinized, Tridimensional, Others), By Flavor(Plain, Flavored), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Snack Pellets Market Overview

Global Snack Pellets Market reached USD 2.9 billion in 2022 and is expected to reach USD 4.3 billion by 2030 growing with a CAGR of 5.1% during the forecast period 2023-2030. Snack pellets are a semi-finished ingredient, which means that once produced by manufacturers, they are ready for customers to manufacture into their finished innovative products. Snack pellets are a versatile, innovative way to disrupt the snacking category.

There are many benefits for snack brands to consider, including pellets in their portfolio. It can use air-popped, zero-oil, and on-trend bases. Snack pellets can also work without seasoning. Snack pellets hold flavor well. These include various types, flavors, and shapes. 

Increasing demand for ready-to-eat snacks due to a busier lifestyle among consumers coupled with improved taste, ingredients, and flavors are the factors leading to the growth of the global snack pellets market. Properties of snack pellets, such as their long shelf life, high density, and simplified storage process, further boost the demand for the snack pellets market in the forecasting period.

Snack Pellets Market Scope

Snack Pellets Market Dynamics

Growth in Food & Beverage Industry is Driving the Snack Pellets Market Growth

Significant growth in the global food and beverage industry is one of the key factors creating a positive outlook for the market. Moreover, with changing lifestyles and hectic schedules, the increasing demand for ready-to-eat (RTE) food products is driving the market's growth. Product manufacturers widely use gelatinized snack pellets, which can be produced with uniform thickness and consistency using specialized high-speed rotary cutting machines.  

Other factors, including the development of snack pellets in attractive 3D shapes, along with the increasing product demand from restaurants, hotels, quick-serving restaurants (QSRs), and cafes, are anticipated to drive the market toward growth. For instance, on May 24, 2021, Kanchan Metals, launched a pellet frying line with Pre-Fryer for the growing snack and food processing industries. The product's USP lies in its full control over frying parameters and minimum space requirements. The line capacity of the Pellet Frying Line with Pre-Fryer starts from 300kg/hr onwards till 1000kg/hr. Pre-heater technology helps remove raw pellets' moisture at a lower temperature. The machine is equipped with a system capable of handling a wide range of pellet shapes using a highly efficient frying process.

Increasing Snacking Trend is Expected to Drive the Market Growth

Snacking has become a more prevalent eating behavior in recent years, with consumers incorporating snacks into their daily routines. This shift in eating habits is driven by factors such as busy lifestyles, increased urbanization, and the need for convenient on-the-go options.

Snacking is no longer limited to traditional mealtimes. Consumers now snack throughout the day, creating additional snacking occasions. This includes mid-morning and mid-afternoon snacks, evening snacks, and late-night snacking. With the rise of busy lifestyles and the need for portable snacks, there is an increased demand for convenient snacking options that can be easily consumed anywhere. Snack pellets, due to their compact and durable nature, provide a suitable solution for these snacking needs.

Consumers' Health and Nutrition Concerns are Restraining the Snack Pellets Market

Consumers worldwide are becoming more health-conscious, actively seeking out healthier food options and paying closer attention to nutritional information. This increased awareness about the relationship between diet and health has led to a shift in consumer preferences toward snacks that are perceived as healthier and more nutritious.

Consumers are increasingly looking for snacks with clean and transparent labels, indicating natural and recognizable ingredients. They want to avoid artificial additives, excessive sodium, unhealthy fats, and high-calorie content. This demand for clean labels restricts the use of certain ingredients and additives that are commonly found in snack pellets.

Snack Pellets Market Segment Analysis

The global snack pellets market is segmented based on type, form, flavor, and region.

Multigrain Segment Holds the Largest Market Share in the Snack Pellets Market

During the forecast period, multigrain type segment is projected to be the fastest-growing segment in the snack pellets market. Multigrain snack pellets are made of various grains that have high nutritional values. Earlier, they used a single grain to produce snack pellets, due to which the nutritional value of products was limited. The consumer demand for multigrain snack pellets remains high due to their high fiber content. With low-fat content, multigrain snack pellets offer various health and taste benefits compared to potato- and corn-based snack pellets. Grains such as wheat are mostly used with other types of grains for snack pellets. For instance, on January 6, 2023, Kurkure’s launched its sub-brand. 

The modern sub-brand caters to the rise in demand for soft-textured snacks, one of the fastest-growing variants in the overall salty snack category. Kurkure Playz comes in two international dairy-flavored offerings: Kurkure Playz Puffcorn and the all-new Kurkure Playz Pastax. Kurkure Playz Puffcorn has a distinct shape with a light texture and comes in a cheese flavor, while the all-new Kurkure Playz Pastax has a creamy herb and onion flavor in a pasta-shaped bite.

Source: DataM Intelligence Analysis (2023)

Global Snack Pellets Market Geographical Penetration

The North America is Dominating the Snack Pellets Market

North America is expected to dominate the snack pellets market during the forecast period due to the growing demand for ready-to-eat snacks as meal replacements. Additionally, consumers in the United States strongly like potato-based snacks. Most of the region's potato snack pellets have these characteristics. Key players in the region are launching new products, which is further expected to drive market growth. For instance, Bunge has purchased the assets of Heartland Harvest Inc., a producer of die-cut pellets used to make extruded foods. 

Heartland Harvest produces die-cut pellets made of various starches, which are expanded through popping, baking, or frying to create extruded food products. Similarly, on November 8, 2020, Velocity Snack Brands (VSB) launched two new Popchips product lines in over 2,100 Kroger Co. stores nationwide to meet evolving consumer snacking habits, with further distribution to follow. Popchips Grain Free and Popchips Corn Chips mark the brand’s first innovations and product rollouts under the ownership of Velocity Snack Brands. The release is the latest step in establishing VSB as a best-in-class platform dedicated to acquiring, incubating, and growing iconic snack brands.

Source: DataM Intelligence Analysis (2023)

Snack Pellets Market Companies

The major global players in the market include Archer Daniels Midland, Takasago International Corporation, Huabao International Holdings Limited, Symrise AG, Kerry Group, Plc., Firmenich SA, Robertet SA, Frutarom Industries Ltd., Sensient Technologies Corporation, and Givaudan International SA.

COVID-19 Impact on Snack Pellets Market

Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis:

Covid-19 Impact:

Increased consumption of packaged food during the pandemic is likely to drive the growth of the global snack pellets market in the forecast period. Due to the lockdown, people were more focused on maintaining a healthy lifestyle, and their major concerns are medical issues such as obesity, food sensitivity, and others. Hence, with the rise in health and wellness awareness among the population, the demand for healthy food has increased substantially, further increasing the snack pellets market. Meanwhile, with the 2nd wave of COVID-19, where people are all forced to stay at home and unable to go out and enjoy the outside delicacies, there is an increased demand for home food.

By Type

• Potato
• Corn
• Rice
• Tapioca
• Multigrain
• Others

By Form

• Laminated
• Gelatinized
• Tridimensional
• Others

By Flavor

• Plain
• Flavored

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In April 2023, Wipro Consumer Care and Lighting announced the acquisition of Brahmins - a Kerala-based traditional vegetarian, spice mix and ready-to-cook brand and it has also drawn up plans to launch its snacks brand targeting the southern market.
• In April 2023, the Competition Commission of India (CCI) approved the proposed combination involving the demerger of the FMCG business of Haldiram Snacks and Haldiram Foods into Haldiram Snacks Food.
• In February 2022, Wind Point Partners, a Chicago-based private equity firm, acquired Palmex S. de R.L. de C.V., a manufacturer of better-for-you and Hispanic snack pellets for salty snacks based in Monterrey, Mexico. The acquisition will serve as a platform to build a North American business-to-business salty snack manufacturer in the BFY and Hispanic segments.

Why Purchase the Report?

• To visualize the global snack pellets market segmentation based on type, form, flavor, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development. 
• Excel data sheet with numerous data points of snack pellets market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study. 
• Product mapping is available as Excel consists of key products of all the major market players.

The global snack pellets market report would provide approximately 61 tables, 60 figures and 190 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies

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