Snack Pellets Market

Snack Pellets Market Size, Share, Growth (2023-2028)

Snack Pellets Market size is expected to grow from USD 2.56 billion in 2023 to reach a value of USD 3.39 billion by 2028, recording a CAGR of 5.80%

Snack Pellets Market Overview:

Snack Pellets are ready-to-eat intermediate snacks made from raw materials such as corn, wheat, rice, tapioca or potatoes, and other vegetables. The pellets become ready-to-eat snacks once enlarged. Snack Pellets can also incorporate flavors and colors into your recipes. Food manufacturers can respond to emerging consumer trends, including the use of many vegetables and grains to enhance the taste of healthy snacks. Two of the most commonly used methods of converting snack pellets into a ready-to-eat form are hot air expansion and hot oil frying. Snack Pellets are increasingly seen as healthier, as the use of excessive oil is avoided which results in avoidance in the formation of acrylamide that is considered a common cause for some specific cancers and heart diseases. 

REPORT COVERAGE:

Snack Pellets Market Recent Developments:

1. In May 2018, Lima grain Cereals Ingredients has concluded an agreement to acquire 100% of the shares of Unicorn Grain Specialties (Netherlands). This agreement would strengthen Limagrain's strong presence in northern Europe, in the pulses and cereals market. It would also supply specialized ingredients to industries such as breakfast cereals, bakeries, snacks, animal nutrition, and nutrition markets. It will procedure more than 330,000 tons of grain each year in seven production plants across Europe.

2. In 2015, Bunge North America acquired the assets of Heartland Harvest Inc., which was a manufacturer of cut tablets used to produce extruded food. Heartland Harvest provides biscuit-cut balls made from a variety of starches, which are spread by blasting, frying, or baking to make extruded food products.

3. Dalmaza Food Industries, part of the ALRAJHI Holding Group, is a manufacturer and exporter of a variety of potato chips under the brand name MARAMI and corn chips under the brand name MARAMISH. Dalmaza Food Industries Co. product line includes potato chips, corn chips, potato dumplings, cereals, and multi-grain dumplings in various types of shapes. Dalmaza Food Industries manufactures snack Pellets under the trade name of snacks.

Snack Pellets Market Drivers and Restraints:

The global Snack Pellets market is expected to experience significant growth during the outlook period. Snack pellets are considered a leading market due to the increasing customer preference for ready meals.

Innovations primarily drive the market as industry players in the market focus on introducing new varieties and new ingredients. These improved processing techniques help meet the growing and changing customer demands. These pellets are semi-finished products cooked by frying or by the expansion of hot air. Most customers prefer them due to their longer life, stability and bulk density. These products are also convenient to store compared to other ready-to-eat alternatives. The Snack Pellets market is very competitive due to the presence of large and small industries. Globalization is supposed to play an essential role in stimulating demand for snacks Pellets during the projection period.

Globalization should help key players to focus on R&D activities through joint ventures, which is further anticipated to aid the market participants to introduce new ingredients along with better recipes to suit the changing customer demands. Switching from consumers to non-fatty foods is also likely to stimulate the market, as snack pellets can also be converted to ready-to-eat meals using hot air expansion techniques. This process prevents the use of oil in the kitchen and therefore prevents the formation of acrylamide, which is believed to cause heart disease. Different marketing programs in the form of discounts, various promotional activities, etc., are likely to attract the majority of the workforce to consume these ready-to-eat snacks. The easy availability of raw materials such as potato starch, corn starch, wheat flour, etc., is another factor that should stimulate the global snack pellets market.

Product transport is a crucial factor considered to affect the growth rate of the market. Most snack pellet manufacturers do not have a separate processing line and therefore have to transfer products from one business unit to another manually. In such situations, the pellets are collected in large plastics and transported to another functional unit. These practices present a risk of microbial contamination if plastic bags are punctured. Quality assurance is another factor that can have an impact on the market and is a significant problem for small manufacturers. This is because some small-scale industries turn a blind eye to various process parameters, such as moisture and oil content. The hygiene practices followed by the employees involved in the manufacture of these products also influence the quality of the products and, therefore, the market demand.

Snack Pellets Market Segmentation:

Based on Type:

• Potato

• Corn

• Rice

• Tapioca

• Multigrain

Based on Form:

• Laminated

• Tridimensional

• Die-face

• Gelatinized

Based on Equipment:

• Twin Screw Extruder

• Single Screw Extruder

Snack Pellets Market Regional Analysis

• North America

• Europe 

• Asia Pacific

• Latin America

• Middle-East & Africa (GCC and Rest of MEA)

Among all, Asia Pacific has the highest demand for snack pellets. Population growth in countries like China and India and parts of Southeast Asia has shown an improvement towards technological advances, global food trends, and increased disposable income per capita are some of the main drivers of the snack pellets market in this region.

North America has established the fastest-growing snack pellet market due to the increasing consumption of fast foods and snacks on the go. This led to the birth of different brands and food manufacturers in this region. In the United States, some snack brands and food processors experiment with blends and flavors, thus appealing to young people. Texture, color and flavor are other factors that add to the demand for snacks in this region. European consumers have adopted healthier eating habits. In countries like Germany and the United Kingdom, the maintenance of a high standard of living and the globalization of salty snacks have led to an increase in demand for tasty salty snacks. The snack pellets market in this region is also being boosted due to the nutritional content of the bites.

Snack Pellets Market Key Players:

1. Intersnack Group GmBH & Co

2. J.R Short Milling Company

3. Quality Pellets A/S

4. Balance Foods Inc

5. Dalmaza Food Industries Co

6. Grupo Industrial Michel