Snack Food Packaging Market: Current Size & Growth Drivers

The packaging of snack foods represents a noteworthy and highly developing segment of the industry, currently estimated at a substantial figure. As per the latest forecast by Fortune Business Insights, the global snack food packaging market size stood at USD 19.29 billion in 2023 and is likely to reach USD 29.15 billion by 2032, growing at a CAGR of 4.77% during the forecast period. This rapid growth is supported by several factors: changing consumer preferences, increasing urbanization, growing incomes, and an ever-escalating need for healthier as well as easy-to-eat snacks. These drivers are not vague ideas. They exist and are actively changing how our snacks are designed, manufactured, and consumed. The following article will further explain these significant growth drivers, the key trends shaping the industry, and the new materials and packaging technologies that are expected in the global snack food packaging industry.

Major Growth Drivers of the Snacks Packaging Market

The growth rate of the snack food packaging market is directly related to social and economic changes. , informed by market research. Some key drivers are greatly enhancing their growth.

• Consumer Lifestyle Changes: The pace of modern life has increased, which has promoted the consumption of convenience food options. To busy individuals and families, snacking is a mainstay in their daily pursuits of easily accessible energy between meals, greatly facilitating daily activities. These changes in eating habits increase the reliance on effective and handy snack containers designed to aid the preservation of freshness and easy opening as well as resealing features.
• Urbanization: The world is experiencing a uniform movement of populations to urban cities which creates dense populations with limited available time for cooking. Increased dependence on food readily available fast leads to packaged snacks playing an increasingly important role in providing these populations. This requires the use of effective and protective packaging needed to ensure product quality during transportation and handling.
• Increase in Disposable Income: The growing middle class in many parts of the globe enables consumers to spend on quality and convenience, which is good for business. Customers sifting through different brands tend to gravitate towards well-packaged staples and this incessant market demand leveraged by large manufacturers is furthered by investment in quality packaging which adds value to the product and enhances its appeal.
• Rising Demand for Healthy and Functional Snacks: Snacks that promote a specific health attribute or dietary need are gaining popularity due to the growing interest in wellness. These new products need specialized materials and designs to package them in such a way that conveys health benefits while maintaining freshness and efficacy.
• Trend Towards Small and Single-Serve Packaging: Concerned with portion control and convenience, snacks sold in small, single-serve formats are in greater demand. To satisfy this need, manufacturers have to shift to more compact and portable pack styles that consumers prefer while maintaining the product’s freshness.

Key Trends Shaping the Global Snack Food Packaging Industry

Apart from more broad-based growth propellers, several factors are currently transforming the snack packaging industry which is having an impact on materials, design, and technology innovation.

• Sustainability: This remains a dominant force, driving the industry towards recyclable, compostable, and biodegradable materials. The adoption of lightweight techniques, using post-consumer recycled plastic, and the development of reusable packaging systems are gaining traction with manufacturers trying to reduce the negative environmental impact.
• Health and Food Safety: The safety of the product through the use of packaging remains one of the most vital business trends. This is centered on improving barrier properties to reduce contamination, using modified atmosphere packaging technologies to extend shelf life, and improving labels to assist with allergens and nutrition information.
• Convenience: Innovations in packaging aimed at improving use convenience are in most demand. This includes easy open and resealable closures that preserve freshness, and other shapes that are easier to carry and on-the-go consumption ready.
• Digitalization and Personalization: The incorporation of new digital technologies into the package is an innovative trend to watch. Interactivity brought by the use of QR codes and NFC tags allows brands to give complete information about the product and print packages for targeted marketing campaigns.
• Cost-Effectiveness: Cost-effectiveness is also a key consideration in embracing sustainability and innovation. The sector is always looking for combinations of materials and designs that maximize the package while minimizing the cost to manufacturers and end users alike.

Dominant Materials in Flexible & Rigid Snack Packaging

Choosing the correct material for the packaging, such as flexible snack bags or pouch packaging, is critical to ensure that snack foods are well-protected, preserved, and attractive. The industry employs a large selection of materials that are, for convenience, grouped into two categories – flexible and rigid, each with distinct benefits and drawbacks.

Flexible Packaging

Because of their economical prices, ease of customization, and ability to meet specific product needs, flexible formats are common in the snack food segment.

Rigid Packaging

Rigid packaging gives a stronger and better protective container for snack foods with improved shelf life and prestige impression.

Snack food manufacturers have to take into account a wide range of problems including cost, barrier performance, strength, eco-friendliness, and customer attractiveness when choosing packaging materials. While flexible packaging is more cost-effective and adaptable, rigid packaging provides strong protection and shelf life. There is innovation in all material types to meet the more stringent requirements for the sustainability trend particularly in recyclability, the use of recycled material, and the production of bio-based substitutes.

Packaging Solutions by Snack Application Type

Apart from shape and size, the snack’s texture, moisture, and environmental sensitivity also determine the packaging solution for snack food. These diverse requirements are met through different formats and materials.

Common Packaging for Different Snack Types:

• Chips and Puffed Snacks: Barrier plastic films that contain metal layers are preferred above all other types. The bags are nitrogen-flushed to help prevent staleness.
• Candy and Chocolate: Commonly packaged in flow wrap plastic bags, paperboard trays, or boxes, some with metal tins as protection.
• Cookies and Biscuits: Each piece is wrapped with plastic film while the bars are foil and paperboard combined.
• Nuts and Dried Fruits: Use flexible pouches with barrier films, sometimes vacuum or modified atmosphere packages, or rigid containers such as plastic tubs or cans.
• Meat and Fish Snacks: Need high-barrier packaging such as vacuum packs, modified atmosphere packs, or retort pouches for longer shelf life.

The Suitability and Advantages of Can Packaging for Specific Snacks:

Flexible packaging seems to rule in numerous snack categories, whereas can packaging has some benefits for specific types of snacks, which require longer shelf life, better protection, and a more premium feel. Snacks such as nuts, premium biscuits, meat, fish, and some gourmet items are better suited to be packed in cans because they require less room and provide optimal storage for the following reasons.

• Extended Shelf Life: The hermetic seal of a can gives protection against oxygen, moisture, as well as light, which is very crucial for sensitive snacks over a long time, keeping them fresh while maintaining quality.
• Superior Sealing: Some modern sealing technologies guarantee good sealing and thus avoid spoilage while keeping the desired texture and taste of the product for as long as possible.
• Protection from Physical Damage: A can protect the snack from being crushed, punctured, or any other physical damage that can happen while it is being distributed and transported.
• High Recyclability: Metal cans, aluminum or steel, are easily recyclable, making them eco-friendly and appealing to new-age customers.

Elevate Your Snack Brand with Levapack’s Superior Can Packaging Solutions

Want to improve the protection and shelf-life of your snack product? You can greatly benefit from our can packaging solutions at Levapack. We have 18 years of industry expertise serving clients globally and offer state-of-the-art can filling and sealing machines for nuts, biscuits, and other snacks that are delivered.

Our machines utilize food-grade stainless steel and components from Siemens/Mitsubishi, DELTA, and SEW to provide accurate filling and airtight sealing. These factors are paramount to ensuring the freshness of the product.

Levapack has a vast inventory of standard equipment for rapid delivery and customized OEM/ODM options.

Do you wish to boost your snack packaging? Get in touch with Levapack now for a consultation and learn how our innovative filling and sealing equipment can aid your brand. Visit our website, or contact our sales representatives for more details and quotations.

Regional Analysis of Snack Food Packaging Consumption

There is marked variation concerning snack food consumption in packaging, which arises from the local eating culture, economic affiliations, social traditions, and even legal issues within the region.

North America

The North American market for snack foods has a high concentration of customers with a focus on convenience. There is a huge popularity with flexible packaging, especially in single-serve pouches and bags. Environmental concerns have led to increasing interest in sustainable packaging solutions, with customers looking for recyclable and compostable packaging. Brands are responding by increasing the amount of recycled content in their packaging and looking for new sustainable materials.

Europe

European markets are seen with a strong sustainability focus due to regulatory compliance and consumer awareness of environmental issues. This has led to a movement in the reduction of plastic waste and the use of bioplastics, paper and other innovative materials and designs that reduce the use of packaging materials. Many European countries with well-established extended producer responsibility (EPR) schemes also provide rewards for the use of recyclable packaging.

Asia Pacific

Urbanization in the Asia Pacific region and an increase in disposable incomes have contributed to an increasing demand in the snack food market. Small single-serve packages are in demand to meet the varied needs of a large on-the-go consumer base. In the region, cost-effectiveness continues to be a principal consideration, especially in developing economies, while sustainability is gaining importance. There is also a shift towards innovative and appealing designs that are visually stunning and stand out on shelves.

Emerging Markets

With the growing economies and a burgeoning middle class in Latin America, the Middle East, and Africa. A shift towards higher quality packaging and branding is being observed along with increasingly sophisticated consumers. Sustainability is not as great a motivator in these emerging markets as in developed, but there is growing awareness of environmental issues, and the rising consumer demands for affordable functional packaging still exist.

Consumption of snacks may also differ further within every region in terms of how they consume and purchase their snacks. For instance, in Japan packaging is done beautifully and with a lot of care, as opposed to India, where packaging is done more cheaply and easily. These regional differences are very important to comprehend for snack food marketers who are interested in optimizing their packaging approaches in particular markets.

Sustainability Initiatives in Snack Food Packaging

The snack food packaging industry is also involved in various sustainability strategies to reduce its impact on the environment and to cater to the needs of environmentally conscious consumers. These initiatives are grouped into the following categories:

Advancements in Sustainable Materials: The sector is making substantial investments in the development and use of new environmentally friendly packaging. This includes increasing the use of recyclable materials like various plastics and paperboard, incorporating post-consumer recycled (PCR) content, exploring bio-based and renewable resources such as plant-based plastics and paper, and developing compostable materials, which can naturally break down. Some of the most prominent companies are spearheading these developments in sustainable materials.

Focus on Packaging Optimization: A different important approach revolves around the reduction of packaging materials. This is accomplished by lightweight to reduce the thickness and weight of materials, optimizing designs to require less material while still functioning effectively, and concentrating product formats that inherently require less packaging per serving.

Promoting Circular Economy Principles: Steps geared towards the implementation of a circular economy, on the other hand, are also beginning to be taken towards snack packaging. These include examining reuse and refill systems, which are not very common in the conventional snack market, and most importantly, improving recycling systems through value chain collaboration and consumer education on recycling.

Sustainable Design Considerations: Packaging design for snacks needs to incorporate end-of-life issues as part of enhancing sustainability. These include the increased use of mono-materials in sachets to improve their likelihood of being recycled, as well as the restriction of composites made out of several materials that are difficult to recycle. Additionally, there is a focus on making it easier for consumers to dispose of the products and prepare the packaging for recycling.

Future Outlook and Emerging Technologies in Packaging

Due to the changes in economic and technological developments, the snack packaging market for snack foods is likely to undergo further transformations. It is anticipated that the future will place more attention on the fight against food waste and wastage through further development of biodegradable and recyclable materials. Barrier technologies that aid in extending shelf life will be made to utilize minimum materials.

Smart packaging that is capable of monitoring freshness and safety through the use of sensors and indicators, effective for the respective function, will likely become commonplace. These smarter packages will also include active packaging that releases preservatives or packages that absorb moisture. Digital printing techniques can allow marketers and consumers to personalize and customize packages more, hence engaging them more easily.

Changes in the eCommerce sector will greatly affect package design as there will be more focus on packaging that can withstand online shipping and delivery. More protective and durable packaging solutions designed for this eCommerce channel will be used.

Selecting Optimal Snack Food Packaging Equipment

Selecting the appropriate packaging equipment is a strategic process that affects the snack food production line, the quality of the final product, and the company’s bottom line. The following are some of the factors that should be taken into consideration during the selection process.

• Consider the Type and Characteristics of the Snack:

Snack products are of different types and therefore they need different packaging. For instance, snacks such as potato chips should be handled carefully because they are brittle while those that are sticky or viscous may require special filling machines. Other factors such as the moisture content of the snack, the particle size, and the susceptibility of the snack to oxygen and light will also determine the type of packaging material to be used and the equipment required.

• Assess Production Scale and Efficiency Needs:

The amount of snacks to be packed and the rate at which it is to be done will determine the degree of automation needed. Semi-automatic packaging machines may be acceptable for small-scale operations or where there is a small throughput of products, while high-throughput production will require a fully automatic packaging line. When choosing equipment, one should consider the future growth projections to avoid the equipment becoming obsolete shortly.

• Evaluate Packaging Material and Format:

The selection for the material of packaging (such as rigid containers, flexible films, or cans) along with the format (bags, pouches, boxes, or cans) directly influences the equipment type needed to fill, seal and label packages. Such machinery should not only fit the chosen materials, but they should also work well with the required formats and deliver them with reliability and efficiency.

• Consider Budgetary Constraints:

Equally important as the upfront cost of packaging machinery is their long-term operational cost, which includes energy use, maintenance, and cost for consumables such as packaging materials. Rather, the initial costs certainly play an important factor in the overall investment decision, however, a complete cost-benefit analysis needs to be conducted for the optimal economically feasible selection.

• Determine the Level of Automation Required:

The level of automation will affect the labor cost and productivity of the production process. Fully automated lines entail more money investment initially, but their production rate is higher and the quantity of manual handling required is comparatively low. The level of automation that is required should therefore be determined by the production requirements and the amount of money that is available.

• Choose a Reputable and Experienced Equipment Supplier:

It is important to choose a packaging equipment supplier that is reputable and has adequate experience in the packaging industry. Closely prospect sources that are known for their credibility, durability, customer service, technical support, spare part supply, and guarantee training.

Conclusion

The market concerning the packing of snack foods is ever-changing due to the interrelationship of constituents’ needs, new electronics and technology, and increasing concern about sustainability. Key players are driving innovation in materials and processing technologies as well as innovative packaging solutions and packaging formats, which are driven by the need for convenient, healthy, and environmentally friendly snacks. As the market expands, those manufacturers who understand these trends and spend resources on effective sustainable packaging will benefit. In this active and constantly changing sector, the most important defining factor of competitiveness will be the choice of the most suitable packaging machinery corresponding to the specific types of snacks produced and the needs of the production process.