Reports: More consumers want savory flavor
- The global savory ingredients market is on track to hit $12.75 billion by 2024, according to a report from Grand View Research, Inc.
- Today's consumers have higher disposable incomes, which has driven them toward purchases of time-saving food products. Experts expect this trend and increasing usage of savory ingredients in foodservice to accelerate market growth over time.
- Savory snacks are also on the rise, and are expected to reach $138.2 billion in 2020 from $94.5 billion in 2015 with a 7.9% CAGR, according to a new Canadean report.
Exotic and regional flavor innovations drive these savory categories, both in snacks and ingredients, and consumers continue to crave those flavors.
The savory snacks industry in particular remains ripe for disruption, as the top five brands — Lay’s, Doritos, Pringles, Cheetos and Ruffles — held less than 16% market share in 2015. This leaves room for snack startups to make a play for a dominant role in the segment, especially those positioned as better-for-you product makers. Major manufacturers have also demonstrated interest in savory snack brands, such as a VC investment in plant-based superfood snacks maker Rhythm Superfoods by General Mills' 301 Inc.
Another rising player in the area, Amplify Snack Brands continues to expand even after its underwhelming IPO last year. The company also maintains its solid positioning in RTE popcorn, the fastest-growing salty snacks category, and tortilla chips, the natural channel's leading salty snacks segment, according to a recent Packaged Facts report.
The growth of the segment doesn't seem to be hurt by controversial ingredients like monosodium glutamate (MSG), which was still the top subcategory in the Grand View Research report. MSG comprised more than 80% of global savory ingredients demand last year. A recent Zion Research report predicted the MSG market would reach $5.85 billion by 2020, up from $4.5 billion in 2014.