Extruded Snack Market Report: Trends, Forecast and Competitive Analysis to 2035

Extruded Snack Market

The future of the global extruded snack market looks promising with opportunities in the potato, corn, rice, tapioca, and mixed grain markets. The global extruded snack market is expected to reach an estimated $106.3 billion by 2035 from $74.3 billion in 2027 with a CAGR of 4.7% from 2027 to 2035. The major drivers for this market are the increasing demand for convenience foods, the rising preference for healthy snacking options, and the growing expansion of retail distribution channels.

• Lucintel forecasts that, within the distribution channel category, supermarkets & hypermarkets is expected to witness the highest growth over the forecast period due to strong suitability for extensive product range and convenient grocery shopping.
• Within the product category, potato is expected to witness the highest growth over the forecast period due to high recognition and versatility with regard to flavor combinations.
• In terms of regions, Europe is expected to witness the highest growth over the forecast period due to well-developed snacking culture and robust distribution in the snack industry.

Emerging Trends in Extruded Snack Market

The extruded snacks market is anticipated to witness several trends from 2025 to 2027. Volumetric production of extruded snacks is expected to diminish, and snacks would be manufactured with different textures and contain cleaner labels. The supply of extruded snacks would be balanced regionally. Processors have started investing in high-speed extrusion lines to meet the consumer demand for convenient, ready-to-eat, and better-for-you snacks.

• Sustainability: In 2025, major snack manufacturers launched the second generation of sustainable packaging to reduce the use of first generation (or virgin) plastics. The use of energy-efficient twin-screw extruders gained focus. With advancements in extrusion technology and tailwinds from more stringent packaging legislation, sustainability would govern the snack industry.
• Health-oriented Reformulation: In 2025 and 2026, several snack brands launched fiber and protein-rich, baked and extruded, snacks. Reforms in snack offerings would continue and focus on textural and sensorial changes.
• Premiumization: Focus would be on differentiating snacks with better textures and senses, justifying higher prices, and capturing premium positioning in the market. Ancient and ethnic grains, and unique seasonings would help differentiate snacks.
• Automation: The food manufacturing industry has traditionally been labor intensive. However, the increasing need to enhance production while using fewer employees has spurred recent automation efforts. A 2025 Food Processing Suppliers Association survey indicated that food processors intend to further automate their operations. Automation of food processing will reduce wastage and increase uniformity.
• Regional Diversification: Food manufacturers have traditionally relied on an international supply and distribution system. However, the volatility in international supply and distribution systems since 2022 has led food manufacturers to produce more locally. Increased investments in India, Southeast Asia, and Latin America since 2025 suggest an improvement in local markets and increase in trade opportunities. Locating food processing operations in these areas will also reduce the time and cost to transport food and increase food security.

By 2027, some food manufacturing companies will lose their competitive advantage if they depend solely on their extrusion capabilities. Some food processing companies have the potential to offer a variety of products with premium ingredients by using multiple formulations. Other companies may focus on incorporating healthy food processing ingredients and improving food processing technology. These companies will increase their market share by focusing on private label food processing.

Recent Developments in the Extruded Snack Market

Between 2025 and 2027, the market is expected to grow as companies launch more variety of Protein and 'better-for-you' Snacks. Additionally, regional variations of existing snacks are expected to be launched during this period. Further, investment in new flexible Extrusion capacities is anticipated. Lucintel anticipates continued focus on premium and Convenience Snacks. Challenging raw material costs are expected to put pressure on the Snack industry margin.

• Premises Expansion: In February 2025, PepsiCo announced its $1.2 billion investment to modernize and expand its U.S. Food and beverage Snack production and distribution facilities. During the next 5 years, increased investment in Snack facility expansion and modernization is expected, thereby, increasing competitive pressure on smaller and mid-size Extruded Snack producers.
• Business Partnership: In May 2025, Cargill and John Deere's business collaboration to improve traceability of agricultural supplies and Raw materials was extended. Improved traceability is expected to influence the Snack food industry. Retailers will require extruded Snack food processors to source raw materials from specific locations.
• Technology: Buhler's new extrusion technologies, launched in March 2025, facilitated the extrusion of complex Snack food shapes. Additionally, the technologies reduced Snack food process waste. Increased competition among Snack food processors is expected to encourage processors to focus on Waste reduction.
• Product Innovation: Mondelez reported further development of its portion- and American-snacking-permissible-based snack portfolio during January 2025, with predicted 2024 revenues in excess of $36 billion. Following this trend, in the coming years, other multinational companies will follow with the launch of new SKUs of extruded snacks enriched with protein and whole grains and/or reduced in sodium and other ingredients. Like Mondelez, others will look to increase its global revenues through more competitively differentiated snack portfolios.
• Acquisition Activity: In June 2025, the $36 billion Mars-Kellan ova merger gave the new entity a stronger global presence through greater integration in the areas of logistics and product/process innovation. As a result of this acquisition, smaller players in the extruded snack market will be motivated to consider strategies other than merger and acquisition to ensure their long-term survival.

There will be continuous product development focusing on non-traditional snack ingredients, like protein, as well as on product formulations that are reduced in sodium and other flavor enhancers. Manufacturers will be forced to consider strategies to meet customers' increasing demands in an oligopolistic market, in which the loss of a key customer could greatly impact their bottom line.

Strategic Growth Opportunities in the Extruded Snack Market

The market for extruded snacks is expected to grow in the foreseeable future. One of the main reasons is the focus on extending the shelf life of snack foods. According to Lucintel, the best opportunities will be created by the development of different snack foods that will be safe and legal to sell and market under the new and upcoming snack food regulations.

• Health-related Snack Foods: Improving the protein and/or fiber content of extruded snack foods may increase the profitability of those products compared to traditional snack foods. In addition, the Snack Foods and Beverage Industry-2025 Update, reported that PepsiCo, Inc. had $91.9 billion in snack food sales in 2024. It may be beneficial for companies to re-focus their efforts on developing and marketing products with improved nutritional values, to gain and maintain market share.
• Pet Foods: There may be potential for extrusion companies to produce pet foods with human food extrusion processes and technology. In 2024, the pet industry in the U.S. reported it has grossed $150.6 billion, and may continue to rise. According to the trends in humanization of pets, pet food manufacturers may focus on digestibility claims and other health-related benefits.
• Southeast Asia: From Hawaii through Indonesia, the Philippines, and Vietnam, our local ingredients and low-cost extrusion equipment provide opportunities to produce snacks. The Indonesian population is projected to reach 284 million by 2025, offering a large potential customer base for low-cost snack foods. Manufacturing snack foods in the region would also reduce the costs associated with transporting the snack foods and allow us to better control the flavor of the snack foods.
• Packaging: Snack food companies would benefit from a partnership with a packaging company to produce extruded snack food products by using a reduced number of materials or by using materials that are 100% recyclable. In 2025, the European Union passed the Packaging and Packaging Waste Regulation, and beginning in 2025, members of the EU would be required to reduce the amount of packaging they generate by 5% by 2030. Increased compliance with this legislation would lead packaging companies to focus on reducing the number of materials used in their packages.

Several industry experts project that formation of strong returns will come from the use of extrusion to create value-added products, especially those containing premium or healthy ingredients, in a sector dominated by commoditized offerings. Equipment manufactures will benefit from the same trend as well as other enhancements to the extrusion lines.

Extruded Snack Market Drivers and Challenges

The extruded snacks market is altering with changing consumer tastes, innovations in food processing, economic developments, and policies. Increasing health consciousness and the need for improved food package and processing equipment's, constrain the market. Advanced food processing technologies to create new food products with differing textures and combinations, and raw materials, increase the competitive nature of the market. For a snack food producer, cheap raw materials and energy may be available in developing markets, but high consumer awareness of food quality and safety in those markets may constrain the business. Profit margins may also be reduced due to inflation. The market research company Lucintel, suggests that in the forecast period, in addition to satisfying consumer demands for snack food, greater consideration will be given to the impact of food production on the ecosystem. There will be growing market potential for food processing companies that are able to produce snack foods that are healthy and safe at an affordable price, while minimizing their impact on the environment.

The factors responsible for driving this market include:

• Convenience and Consumer Preferences: Busy, urban lifestyles have fueled the need for convenient, ready-to-eat meals and snacks. Consumers are increasingly concerned with snack portion control and prefer prepackaged, ready-to-eat meals and snacks. The 2025 Food and Health Survey conducted by the International Food Information Council (IFIC) indicated that 73% of respondents snacked at least twice daily. Snacks play a vital role in consumer lifestyles; therefore, to gain and maintain market share, snack producers will need to continue developing convenient, healthy and interesting snack options.
• Product and Process Innovation: The combination of unique shapes and textures with different fillings and seasonings, broadens the snack appeal. To create new snack products and give existing products a competitive edge, producers implement different flavor strategies. For example, incorporating regional or ethnic flavor profiles. In addition, the focus on product and process innovations to achieve textural differentiation will continue for the next few years.
• Healthier Ingredients and Positioning: The snack food market is becoming more competitive as manufacturers reformulate traditional snack foods to include ingredients such as whole grains, fiber and protein and to use less sodium. Manufacturers have also started using plant-based ingredients to separate themselves from competitors. In a 2025 survey conducted by the International Food Information Council, 63% of respondents said they thought protein was an important aspect of a healthy diet. The next few years are expected to bring further growth opportunities for snack food companies. To remain successful, companies will need to find a good balance between ingredients that make snack foods less healthy and more indulgent and snack foods that have a better nutritional profile.
• Innovation in Food Processing: Improvements in food extrusion technology have allowed for better control over the energy used during the process and better consistency in the texture of foods. Digital technology has also allowed for better control over a variety of processes, including maintenance. Recent policy changes made by the Food and Drug Administration have also stressed a greater focus on process control. The next few years will likely see further advancement in processing technologies and a greater emphasis on controlling overall variability in food processing.
• Improvement in Packaging and Sustainability: Producers aim to reduce their environmental footprints by using less energy and materials, wasting less food, and relying less on difficult-to-recycle packaging. Packaging made using less material, and packaging that is recyclable and/or contains recycled content is favored. Beginning in 2025, the European Union further implemented its requirements on packaging to achieve a 15% per capita relative reduction of packaging waste by 2040 as compared to 2018 levels. In the next 3 to 5 years, the effort to minimize packaging waste will increasingly impact the products that retailers carry and the reputation of the product's brand. Companies will benefit from investing to improve the sustainability of their product packaging and resource usage.

The challenges facing this market include:

• Swings in The Price and Availability of Raw Materials: The price and availability of raw materials used to produce food, as well as packaging materials and energy, are affected by various international events and conditions. Because of these conditions, the World Bank believed that it was difficult to plan for raw materials beyond the short-term. Raw material price swings and unpredictable availability will force manufacturers to be flexible in product formulation and raw material sourcing. Especially small and medium sized companies may find it more difficult to adapt.
• Complexity of Regulations and Labelling: Variations in food-safety regulations, labelling requirements, and permitted claims across countries complicate products' formulations and increase costs. As of January 2025, how the EU regulates food contact materials and packaging will be of concern to exporters of snack foods. It is likely that in the next 3 to 5 years, there will be increased regulations concerning sodium, artificial ingredients, packaging, and waste, as well as health claims general fitness. Violations of any of these may result in product liability. To address these, firms will need to routinely modify their products and document those modifications. They will also need to invest in regulatory and product safety systems.
• Consumer Perception and Competition: Processing and the use of artificial ingredients in snack foods creates an unfavorable perception among consumers. Additionally, there is strong competition from foods high in protein and other nutrients and from fresh, less processed foods. In 2025, the World Health Organization (WHO) continued to advocate for the consumption of low-sodium foods. There are many opportunities for salty snack foods to use effective product reformulation and other strategies to improve their public image and counter declining product demand.

The market for extruded snacks is attracting growing interest because of changing consumer preferences for convenience and a wide range of Flavors. In addition, healthier formulations are capturing the interest of retailers. Automation during extrusion provides opportunities for reduced labor costs. Sustainability is positively impacting the market as well. However, there are challenges including expensive and unpredictable raw materials, complex regulations, health and wellness concerns, and intense competition. The best opportunities for success will be realized by extruded snack manufacturers focused on responsible sourcing and improving the nutrition profile of their products through the use of advanced extrusion and efficient packaging technologies. In the future, market competition will be based on a balance of factors including price, product features, and health and wellness benefits.

List of Extruded Snack Market Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies extruded snack market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the extruded snack market companies profiled in this report include-

• Nestle
• Kellanova
• General Mills Inc.
• PepsiCo
• The Campbell's Company
• Calbee
• ITC Limited
• Old Dutch Foods, Inc.
• Europe Snacks
• Universal Robina Corporation

Extruded Snack Market by Segment

The study includes a forecast for the global extruded snack market by product, distribution channel, and region.

Extruded Snack Market by Product [Value ($B) from 2019 to 2035]:

• Potato
• Corn
• Rice
• Tapioca
• Mixed Grains
• Others

Extruded Snack Market by Distribution Channel [Value ($B) from 2019 to 2035]:

• Supermarkets & Hypermarkets
• Convenience Stores
• Specialty Stores
• Online Retail
• Others

Extruded Snack Market by Region [Value ($B) from 2019 to 2035]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Extruded Snack Market

The extruded snack market is undergoing a transition in the next few years with multinational food companies focusing on resilience and flexibility of their capacity and integration of lower energy processing. From 2025 to 2027, expect them to make further investments to gain a stronger position in consuming center. Lucintel anticipates they will make additional investments to build and strengthen their presence in the snack category.

United States: In 2025, Mars acquired Kellan ova for 36 billion and PepsiCo continued to invest in the upgrade of their snack facilities in North America. Both focused on bolstering their distribution, manufacturing, and research and development, and will influence and shape the competition in the snack market up to 2030.

• China: The development of local sourcing and production of snacks by PepsiCo in China will be strengthened with the construction of a new manufacturing plant in Sichuan province, expected to be completed by June 2025, at an estimated cost of $200 million. In the coming years, the plant will help PepsiCo to develop local supply and production of extruded snacks.
• Germany: In 2025, The EU Packaging and Packaging Waste Directive came into effect. During the year, automation and flexibility of production and packaging lines further improved. Production and packaging equipment for compliancy with the new law also increased operating costs.
• India: In May 2025, PepsiCo announced a $1.5 billion investment in India. The funds will be used for building production and supply chain capacity for local sourcing and production of snacks. The expanded infrastructure will provide the capacity for the future launch of a wider variety of extruded and snack products in India and other regions of South Asia.
• Japan: Capital expenditures for the production of cable's extruded snacks in Japan for fiscal 2025 totaled 45 billion yen. Further automation of production processes is expected to ensure improved product and process development.

Features of the Global Extruded Snack Market

• Market Size Estimates: extruded snack market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions.
• Segmentation Analysis: extruded snack market size by product, distribution channel, and region in terms of value ($B).
• Regional Analysis: extruded snack market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different products, distribution channels, and regions for the extruded snack market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape of the extruded snack market.

Analysis of competitive intensity of the industry based on Porter's Five Forces model.

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This report answers following 11 key questions:

• Q.1. What are some of the most promising, high-growth opportunities for the extruded snack market by product (potato, corn, rice, tapioca, mixed grains, and others), distribution channel (supermarkets & hypermarkets, convenience stores, specialty stores, online retail, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
• Q.2. Which segments will grow at a faster pace and why?
• Q.3. Which region will grow at a faster pace and why?
• Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
• Q.5. What are the business risks and competitive threats in this market?
• Q.6. What are the emerging trends in this market and the reasons behind them?
• Q.7. What are some of the changing demands of customers in the market?
• Q.8. What are the new developments in the market? Which companies are leading these developments?
• Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
• Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
• Q.11. What M&A activity has occurred in the last 7 years and what has its impact been on the industry?