Key findings

Snack companies are reshaping portfolios through acquisitions, divestitures and strategic investments

In 2024, M&A activity and investments in the snack industry grew as companies expanded and refined their portfolios. Notable deals included Mars acquiring Kellanova, PepsiCo buying Siete Foods, Ferrero buying Nonni’s bakery, and Mondelez investing in alternative (cell-culture) cocoa production. This reflects a broader trend of growth, diversification and innovation in snacks.

Emerging markets drive growth as snack companies localise, and global interest spreads foreign flavours

As emerging markets drive global growth, many snack companies are focusing on expanding into these regions, often employing localisation strategies to cater to specific tastes and preferences. At the same time, the growing interest in foreign cultures has led to the adoption of traditional flavours from one country or region in others.

Brands innovate with new flavours and build partnerships that drive social media engagement

Consumers are seeking new snack experiences, driving companies to innovate with unique flavours, including spicy and sweet/spicy options. Brands are collaborating with one another to create co-branded products that generate social media buzz, driven by consumers’ trust in online networks and influencers.

Health and wellness is regaining a more prominent place in snacks innovation

Health-focused regulations are gaining momentum worldwide, while consumers are becoming more health conscious, and are paying increasing attention to the health claims and functionality of the snacks they eat. Global snacks players are responding by ramping up innovation and investment centred on consumer health and wellness.

Sustainability continues to be a priority for most top snacks players

Given that a sizeable segment of consumers seek natural, locally sourced and eco-friendly products, sustainability is a key focus for snack companies. With the cocoa sector particularly hit by sustainability challenges, many initiatives are underway to improve the lives of cocoa farmers by increasing profits, eliminating child labour and fighting deforestation.