Key findings

The snacks industry grew in 2024 with value-driven demand and cost challenges shaping future growth

The snacks industry saw sustained value growth in 2024, with global retail sales surpassing USD680 billion, up 3.7% from 2023. Consumers' purchasing power is stabilising, but affordability and value remain key. The industry is expected to grow over the forecast period, driven by consumers' sustained desire for snack occasions and anticipated upgrades in selections. Cost challenges, including rising prices of inputs such as cocoa and sugar, will contribute to price and value growth.

Discounters and warehouse clubs lead growth driven by low prices and rising demand amid inflation

Discounters and warehouse clubs record the highest growth over 2019-2024. Both channels share the same goal of offering a limited selection of items at the best price. Snack sales through discounters, globally, recorded an almost 10% CAGR over the historic period. With inflation and tighter consumer spending, shoppers have turned to discounters for affordable alternatives.

Expanding access and value propositions are seen sustaining e-commerce snack sales

Retail e-commerce snack sales continue to grow share and outperform offline channels despite subsiding growth. The channel’s success has come from expansion and consumer enablement strategies - including price deals, a focus on convenience and e-commerce impulse (e-impulse).

New retail models emerge in offline and online to answer consumers’ demand for snacks

Busy For You is rapidly expanding in China. The snack retail chain has gained significant popularity in inland regions offering international and local brands as well as private label at discounted price. In Europe, the company Koro offers a range of clean label snacks and functional food at an affordable price under its private label. Born online, it is now available in selected offline retailers such as Holland & Barrett in the UK and Edeka in Germany