Snack Foods Manufacturing
Companies in this industry make snack foods such as nuts, chips, and popcorn, as well as peanut butter. Major companies include Clif Bar, Frito-Lay, Mondelez International, Utz Quality Foods, Wonderful Pistachios & Almonds, and the snack divisions of diversified food manufacturers such as Campbell Soup and Kellogg (all based in the US); other leading firms include Calbee Foods (Japan), Nongshim (South Korea), United Biscuits (UK), and Walkers Snack Foods (UK).
Worldwide, the savory snack foods market — salted snacks, processed snacks, and nuts and seeds — is expected to grow to $220 billion in revenue by 2025, according to PMMI Business Intelligence. Europe and North America are the largest markets for snack foods manufacturers, with healthy snacks, including bars, driving growth in the latter. Latin America and the Asia/Pacific region are the world's fastest-growing snack foods markets. Other regional growth opportunities include the Middle East and Africa.
The US snack foods manufacturing industry includes about 650 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $41 billion.
The industry does not include makers of cookies and candy, which are covered in separate industry profiles.
Demand is driven by consumer tastes and health considerations. The profitability of individual companies depends on efficient operations, effective marketing, and a strong sales force. Large companies have advantages in raw material purchasing, manufacturing efficiencies, distribution, and marketing budgets. Small operations can compete effectively by self-distributing products, selling online, or marketing snacks as gift items. The US industry is highly concentrated: the top 50 companies account for about 90% of industry revenue.
Snack foods compete for consumer dollars against other impulse food items, including cookies and crackers, baked goods, fruits and vegetables, and fast food.
Products, Operations & Technology
Major products are nuts and seeds (about 35% of industry revenue); potato chips (25%); and corn chips, including tortilla chips (20%). Other products include
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms