Global snack food market to grow 7% annually through 2015

The Packaging Machinery Manufacturers Association (PMMI) has released this month a report “Bakery and Snacks — Market Assessment 2012.”

The report - available here for PMMI members - details the effects of changing retailer demands, eating habits, demographics, regulations and sustainability on original equipment manufacturers (OEMs) as well as their customers.

The bakery and snack arena is growing – everywhere. In the US, the Bakery and Snacks market is predicted to grow 4 percent through 2015, but it estimated that there will be a 7 percent annual growth globally in sales of snack foods in the same period. Meanwhile bakery product sales are expected to increase 4.5 percent annually by 2015.

“Globally, regions such as Asia Pacific, Latin America and India are presenting the best scenarios for future growth for snacks and bakery products,” says Paula Feldman, director of Business Intelligence, PMMI. “Our global packaging report noted that by 2015, world population growth will spring largely from the Asia Pacific region, which is expected to see a 160 billion-person increase in that time.”

While the US may currently be the largest market for snacks, it will have some competition to keep that crown. The PMMI report found that 62 percent of the snack food companies surveyed see Asia as the source of their largest faction of growth. That’s a lot of companies expecting to benefit from this newer area.

All of this growth and expansion in the bakery and snacks arena will continue to affect the packaging side of the business.

“In the bakery and snack foods arenas, retailers are specifying package sizes, multi-packs and variety packs to optimize shelf space, and they’re asking for retail-ready packaging for high-traffic areas,” Feldman says. “Convenience and drug stores also have their own sets of requirements, and more than a quarter (26 percent) of respondents are developing packaging accordingly.”

These are tall orders and bakery and snack manufacturers are turning to packaging OEMS to help them meet the needs of their customers.

“Their requests fall into three categories: functionality, support and integration,” Feldman says. “The OEM that wants to meet those needs will do best to build a relationship with the manufacturer and collaborate in the design process.

Today’s baking and snack foods manufacturers want machines that can be flexible and run a variety of sizes, materials and packages;that are easier to clean and operate, ergonomically designed, and reliable. They need OEMs to clearly communicate recommended cleaning schedules and to provide knowledgeable technical support,” she says. “That’s in addition to integrated lines, remote connectivity and the like!”

Now we know the challenges, how do we solve them? Attend PACK EXPO International 2012 (McCormick Place, Chicago;Oct. 28–31). More than 1,800 exhibitors will be available to choose from, and snack food and bakery products manufacturers will have a rich source to begin forging these OEM partnerships.