GlobalData’s forecasts reveal that the global savoury snacks market is expected to rise from $156.3bn in 2020 to $183.8bn by 2023.
This growth is being driven by the pandemic; with countries finding themselves back under lockdown conditions and consumers bulk purchasing savoury snacks and condiments along with essential items such as water and bread.
Although GlobalData says that growth will be slightly slower than initial pre-COVID predictions due to continued economic pressure that has lowered consumer confidence.
Jim Toy, Consumer Analyst at GlobalData says that Kraft-Heinz’s recent deal to conduct research on fermented ingredients with APC Microbiome is a smart move from the company.
The deal allows Kraft-Heinz to take up new, novel flavours and formulations that are likely to appeal to experimental consumers. But by outsourcing this part of the business it also allows Kraft-Heinz to focus on improving its supply chain, which was disrupted by Covid-19, and work on direct to consumer (DTC) channels.
“This move by Kraft-Heinz means less time will be wasted on internally led and potentially dead-end research. Furthermore, by focusing on new innovations and sales strategies such as clean-label ingredient formulations and DTC channels, Kraft-Heinz will receive a much-needed competitive boost,” says Toy.
“By focusing on ingredient and formulation innovations via the APC Microbiome partnership, the company is able to better align with strengthening demand for ‘clean’ and ‘safe’ products that will resonate with consumers during these trying times. It could be that by enabling larger brands to take up trends seen in the ‘new normal’, the company has been able to position itself in good stead to yield a significant edge over its smaller competitors on a local scale.”