Snack Pellets Market Size - By Product Type (Potato-based, Corn-based, Rice-based, Tapioca-based, Multigrain-based), Form (Laminated, Tridimensional, Die-face, Gelatinized), Equipment (Single-Screw Extruders, Twin-Screw Extruders) & Forecast, 2023 – 2032

Snack Pellets Market Size

Snack Pellets Market size was valued at USD 2.2 billion in 2022 and is estimated to observe 4.6% CAGR from 2023 to 2032. Snack pellets, which are semi-finished products made from various grains, vegetables, and other raw materials, serve as a versatile base for the production of a wide range of snack products. These include extruded snacks, fried or baked snacks, and filled snacks, among others. The market has witnessed substantial expansion due to factors such as changing lifestyles, the rise in urbanization, and the burgeoning popularity of snacking as a leisure activity.
 

Moreover, the increasing consumer inclination towards healthier snacking options has led to the development of snack pellets with enhanced nutritional profiles, catering to the demand for nutritious and wholesome snack alternatives. Furthermore, the burgeoning popularity of flavored and gourmet snacks, coupled with the introduction of innovative and exotic flavors, has further propelled the growth of the snack pellets market.
 

The cost of developing and manufacturing snack pellets can be high, especially for new companies that do not have access to economies of scale. Additionally, the cost of raw materials, such as corn and other grains, can be volatile, which can make it difficult to maintain profit margins. Also, Consumer preferences for snack pellets can be fickle and change rapidly. Companies must be able to quickly adapt their products and marketing strategies to meet the changing demands of consumers.
 

COVID-19 Impact

With the imposition of lockdowns and restrictions on movement, there was a notable shift in consumer behavior, leading to a surge in demand for shelf-stable and ready-to-eat snacks, including those derived from snack pellets. This sudden shift in consumer preferences towards packaged and convenience foods, driven by the need for long-lasting and easily accessible food items, bolstered the demand for snack pellets during the pandemic. However, the global supply chain disruptions caused by the pandemic, including restrictions on transportation and trade, posed significant challenges for the market. These disruptions led to difficulties in sourcing raw materials, impacting production capacities and causing fluctuations in product availability.
 

Snack Pellets Market Trends

The industry is experincing a surge in the adoption of advanced technologies and innovative production methods, leading to the development of customized and value-added snack pellet products. Manufacturers are increasingly investing in research and development to create snack pellets with enhanced textures, shapes, and nutritional profiles, thereby offering consumers a diverse range of snacking options.
 

Furthermore, the rising popularity of plant-based and protein-enriched snack pellets is another significant trend within the market, reflecting the increasing consumer shift towards sustainable and protein-rich diets. This trend aligns with the growing emphasis on environmentally friendly practices and the rising demand for plant-based snack alternatives.
 

Snack Pellets Market Analysis

Based on product type, the potato-based snack pellets segment held over USD 0.73 billion revenue in 2022. These pellets are known for their crispy texture and are often utilized in the production of various savory and flavored snacks, contributing to their dominant market position. Corn-based snack pellets follow closely, reflecting a substantial market share, owing to their characteristic light and crunchy texture, as well as their ability to serve as a base for a diverse range of snack products such as tortilla chips and cheese puffs.
 

Based on form, the laminated segment accounted for 55.05% of the snack pellets market share in 2022. Laminated snack pellets are widely used in the production of multilayered and filled snacks, offering a diverse range of textures and flavors to cater to consumer preferences. Tridimensional snack pellets also account for a significant portion of the market share, known for their three-dimensional shapes and unique textures that enhance the overall snacking experience. These pellets are often utilized in the production of intricately shaped and textured snack products, appealing to consumers seeking visually appealing and novel snack options.
 

Based on equipment, the market is segmented as Single-Screw Extruders, Twin-Screw Extruders. Single-screw extruders currently hold a significant share in the market, known for their cost-effectiveness and versatility in processing various raw materials into different types of snack pellets. These extruders are widely utilized in the production of a diverse range of snack products, offering manufacturers a practical and efficient solution for producing high-quality snack pellets at a relatively lower cost.
 

Asia Pacific snack pellets market size held over USD 0.76 billion in 2022. Asia Pacific, comprising diverse and populous countries such as China, India, and Japan, serves as a key hub for snack pellet production and consumption. The region's robust market share can be attributed to several factors, including the increasing population, rapid urbanization, and changing consumer lifestyles, which have collectively contributed to the growing demand for convenient and ready-to-eat snack products. The expanding middle-class population and rising disposable incomes have led to an increased inclination towards premium and value-added snack products, driving the demand for high-quality and innovative snack pellets in the region.
 

Snack Pellets Market Share

Some of the major companies operating in the snack pellets industry are:

• Limagrain Ingredients
• Bach Snacks
• Liven S.A.
• Noble Agro Food
• J.R. Short Milling
• Pasta Foods Ltd.
• Grupo Michel
• Leng d’Or S.A.
• Pellsnack products
• Van Marcke Foods
• Mafin
• Quality Pellets
• Le Caselle SpA
• Snack Creations
• Gopal Namkeen

These companies focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these companies are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
 

Limagrain Ingredients and Liven S.A. are two of the leading companies in the global snack pellets market. Both companies offer a wide range of snack pellets, including potato, corn, and multigrain pellets. They also offer a variety of flavors and coatings to meet the needs of different consumers. Limagrain Ingredients is a French company that was founded in 1963. The company has a strong presence in Europe, but it also operates in North America, South America, and Asia. Limagrain Ingredients offers a wide range of snack pellets, including potato, corn, rice, and multigrain pellets. The company also offers a variety of flavors and coatings, including cheese, sour cream, and barbecue.
 

Snack Pellets Industry News

In August 2023, The Central Board of Indirect Taxes and Customs (CBIC) in India clarified certain aspects of GST rates and the classification of specific goods, based on recommendations from the 50th GST Council meeting. According to the notice, the supply of uncooked or unfried extruded snack pellets, regardless of their denomination, falling under CTH 1905, will be subject to a 5% GST as of the 27th of July, 2023.
 

The snack pellets market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Units from 2018 to 2032, for the following segments:

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Market, By Product Type

• Potato-based
• Corn-based
• Rice-based
• Tapioca-based
• Multigrain-based
• Other

Market, By Form

• Laminated
• Tridimensional
• Die-face
• Gelatinized

Market, By Equipment

• Single-Screw Extruders
• Twin-Screw Extruders

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt