Where Consumers Shop for Snacks

February 2025

The snacks industry grew in 2024, driven by value-focused demand despite cost challenges. Discounters and warehouse clubs led sales growth, benefitting from low prices and rising demand amid inflation. E-commerce snack sales are expected to stay strong through strategies such as price promotions, convenience and impulse-driven shopping. New retail models, such as snack specialist retailers in China expand. However, more traditional small local grocers currently lead snack sales in Asia Pacific.

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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

Scope
Executive summary
Global snacks sales see sustained value growth in 2024
Value expansion efforts boost savoury snacks while cocoa price hikes hit categories
Inflation and affordability challenges have altered snacks performance across markets
E-commerce continues to gain share and discounters drive offline sales growth in 2024
E-commerce and discounters are winners of 2024 according to industry professionals
Savoury snacks leads snacks online sales fulfilling multiple eating occasions
Small and local grocers have outperformed supermarkets in shares in Asia Pacific in 2024
In China, snacks stores continue to open across the country despite industry slowdown
Discounters and warehouse clubs show strongest growth over the historic period
Supermarkets and hypermarkets invest in shopper experience to compete with discounters
Walmart and Schwarz maintain leading positions over the historic period
Boosted by price sensitivity, private label sales continue to grow in all snacks categories
Private label: A dominant force in Western Europe’s snacks market
Price hikes and premium offers boost private label sales growth in Latin America
Despite passing its peak growth phase, e-commerce snacks still hold untapped opportunities
North America and Asia Pacific lead e-commerce snacks with emerging regions expanding
The e-impulse dilemma remains a critical component to address for emerging markets
Online snacks sales growth slows despite expanded access and better deals
Koro disturbs traditional snacks offering in Europe with a direct-to-consumer platform
Snacks e-commerce will continue to grow but omnichannel strategy is key
Key takeaways
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