Extruded Snacks Market Trends

Introduction

We are going to analyze the extruded snacks market in 2023. Several macroeconomic factors are significantly influencing the development of the extruded snacks market. The development of food technology and the possibility of adding new flavors allows the development of new varieties of products and a wide variety of flavors. The development of food technology and the possibility of adding new flavors enables the development of a wide variety of products. The regulatory framework relating to health and nutrition is also causing snack producers to reformulate their products in line with consumers' growing demand for healthier products. Also, changes in the habits of consumers, primarily the growing preference for convenient and mobile snacks, will change the market. These trends are strategically important for the market because they not only reflect changing consumer preferences, but also offer opportunities for differentiation and competitive advantage in the rapidly changing environment.

Top Trends

1. Health-Conscious Snacking
   A demand for healthy snacks is growing, with sixty per cent of consumers preferring them. The answer is extruded snacks made from whole grains and pulses. Calbee has also launched a line of baked snacks, which are low in fat and calories. This trend is influencing the formulation of new products. In the future, it will lead to greater scrutiny of the nutritional information on labels.
2. Plant-Based Ingredients
   The shift to plant-based diets is influencing the snack industry, with 40 percent of consumers looking for plant-based options. The snack market is responding with the launch of new products, such as those made with peas and lentils. The trend not only reflects dietary preferences but also aligns with sustainable development goals. Brands will be expected to source their ingredients with greater transparency and responsibility.
3. Flavor Innovation
   The use of new and unusual flavours has become the distinctive feature of the extruded snack market, with 55% of consumers being willing to try new flavours. Frito-Lay has launched a series of limited editions to lure adventurous consumers. This trend has led to a greater investment in research and development for new flavours, which in turn has affected marketing strategies. In the future, it is possible that a greater emphasis will be placed on collaborations with chefs or other celebrities to create unique flavour profiles.
4. Sustainable Packaging Solutions
   The interest in the environment is growing, and seven out of ten consumers are prepared to pay more for an environment-friendly package. As a result, snack food companies are experimenting with biodegradable and recyclable materials for their products. This trend has brought about a change in the production processes and the supply chain. Brands may be forced to adopt a more sustainable approach to meet the consumers’ expectations.
5. Convenience and On-the-Go Options
   The demand for convenient snacking solutions is growing. More than half of consumers are looking for portable snacks. ITC has launched single-serve packs of extruded snacks to meet this demand. This is driving innovation in packaging and distribution. Vending machine offerings and online delivery of snacks are likely to grow in the future.
6. Functional Snacks
   A healthy snack is a trend that is gaining ground. According to Mintel, half of consumers want snacks that promote well-being. Brands are introducing ingredients such as fiber, probiotics and pro- and pre-biotics into their extruded snacks. This trend is being spearheaded by Diamond Foods, which is promoting snacks that are formulated to enhance energy and digestion. This trend will also be reflected in labeling and in marketing claims.
7. Global Flavor Trends
   The extruded snacks market is characterised by a flavour profile that is influenced by international cuisines. Old Dutch has introduced snacks inspired by Asian and Latin American cuisines. Brands are experimenting with the flavours and ingredients in this way. The future may see regional collaborations to create authentic flavours.
8. Increased Online Sales Channels
   Sales of puffed rice are booming on the Internet. In the past year, the sale of puffed rice via the Internet has grown by 30 per cent. It is not surprising, since the Internet is the most efficient way to reach consumers. Companies are investing heavily in digital marketing and platforms for direct sales to consumers. This trend is changing the distribution strategies and stock-keeping of the companies. Brands will have to further strengthen their digital and logistics capabilities to keep up with the growing trend.
9. Clean Label Products
   Those who wish to know the origin of the substances used in the preparations they consume are becoming more demanding, and seven out of ten consumers prefer clean label products. Brands are responding by removing all artificial preservatives and colourings from their extruded snacks. Kellogg’s has decided to make its products more transparent, a policy it has applied to all its lines. This trend is likely to influence the regulatory framework and the degree of trust consumers have in brands in the future.
10. Cross-Category Innovations
    In the meantime, the snack market is evolving. The most significant trend is the blending of the snack categories. Some 35% of consumers are interested in hybrid products. Companies are experimenting with blending extruded snacks with other categories such as cereals and bars. This trend is reshaping the way brands develop and market their products. In the long term, this trend may lead to the creation of new snack categories.

Conclusion: Navigating the Competitive Extruded Snacks Landscape

In 2023, the market for extruded snacks will be characterized by a high degree of competition and fragmentation. Both the historical and the new entrants will compete for market share. Regional trends indicate a growing demand for healthier and more innovative snacks, which the historical brands are trying to meet with their portfolios, while the new entrants are relying on their agility and niche offerings. In order to compete, the players are increasingly relying on capabilities such as AI-driven customer insights, automation in the production process, sustainable sourcing, and agile product development. The decision-makers will have to set priorities and navigate the complexities of changing customer preferences and the competitive environment.