PACKAGED PRETZELS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Packaged Pretzels Market Size and Trends

The packaged pretzels market is estimated to be valued at USD 2.55 Bn in 2024 and is expected to reach USD 3.49 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031.

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The packaged pretzels market is projected witness a positive growth trend over the forecast period. The demand for packaged snacks is increasing rapidly among consumers who prefer easy to carry and consume snacks. Furthermore, busy lifestyles have shifted consumer preference towards convenient snacking options. Rising health consciousness has also fueled the demand for baked snacks like pretzels owing to their low calorie and fat content. Manufacturers are investing in new product launches with innovative flavors and packaging solutions to attract more customers. For instance, thin and baked pretzels are gaining popularity. However, volatility in the prices of raw materials may hamper the market growth in the coming years.

Health and wellness trends

The demand for packaged and snack foods that are viewed as being healthier is steadily rising. Customers are increasingly seeking out products that are lower in calories, sugar, fat, and unwanted ingredients like artificial colors, flavors, and preservatives. Pretzels fit well within this trend as they are widely considered a better-for-you snack compared to chips, crackers, or candy. Made primarily from wheat flour, pretzels are low in fat and calories while providing protein and fiber. Leading pretzel brands have responded by emphasizing these nutritional benefits in their marketing and introducing new product lines focused on health attributes. Surge in offerings featuring gluten-free, whole grain, sprouted grain and ancient grain varieties of pretzels targeting those with dietary restrictions or seeking out more nutritious snack options. The perception of pretzels as a relatively wholesome snack choice compared to other packaged food products has helped drive its increased consumption and demand in recent years. This health and wellness consciousness within the food industry shows no signs of slowing and should continue supporting growth in the pretzels market.

Market Concentration and Competitive Landscape

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Growth of convenience stores and on-the-go eating

Consumers today lead increasingly busy lifestyles with less time to devote to meal preparation at home. As a result, there has been explosive growth in convenience stores, gas stations, drug stores, and other small format retail channels catering to on-the-go shoppers looking for a quick snack. Packaged foods that can be easily purchased and consumed in a matter of minutes have seen tremendous success within these environments. Pretzels are an ideal solution as they require no preparation, are portable, allow for one-handed eating, and have a shelf life measured in weeks when properly stored. Many people now view pretzels as a go-to snacking option whether running errands between activities or taking a brief break at work. Manufacturers have embraced these changing consumption patterns through product designs optimized for portability along with partnerships that focus on stocking pretzels at an expanding network of convenience locations. The fast-growing convenience channel bodes very well for ongoing pretzels market performance.

Key Takeaways from Analyst:

The packaged pretzels market is expected to experience moderate growth driven by the increasing popularity of snacks and on-the-go food options. The busier lifestyles of consumers have amplified the demand for convenient, portable snacks like pretzels. Additionally, the expansion of retail landscapes including convenience stores, gas stations, and drug stores have improved the accessibility of packaged pretzels.

The market still faces threats from the rising health-consciousness among consumers. Many are seeking snacks with cleaner labels, organic or all-natural ingredients. Packaged foods with preservatives, artificial colors, or flavors may fall out of favor. Snack makers will need to innovate new product lines that offer simple, wholesome ingredients to attract health-oriented buyers. Rising labor and input costs can also constrain profits for pretzel manufacturers.

North America currently dominates global sales, led by the U.S. The widespread snack culture and popularity of salty and savory flavors continue to drive pretzel consumption in the region. Meanwhile, Central and Eastern Europe have emerged as another major markets backed by Europe's developed economies and cultures with traditional pretzel varieties.

Market Challenges: Availability of substitutes

The availability of various packaged snack substitutes is posing a notable challenge for the growth of the global packaged pretzels market. There are several alternative snacks available that provide similar snacking experience and nutrition value as pretzels but at a lower price point. Some of the main substitute options include chips, nuts, trail mixes, crackers, cookies and savory granola bars. These products can all be consumed as a convenient snack and provide salt, carbohydrates and fats similar to pretzels. The widespread availability of cheap substitutes is prompting consumers to switch to alternatives instead of pretzels. For example, in the United States where the packaged pretzels market is one of the largest, shelf-stable chips and crackers dominate the savory snacking space. Frito-Lay and PepsiCo that have a stronghold over the chip category spend aggressively on promotions and discounts to keep prices low and further boost demand for their products over pretzels and other snacks. As a result of the price competitiveness and marketing dominance of major chip and cracker players, it has become challenging for pretzel brands to gain significant market share in the country. Moreover, the pandemic has further accelerated the sales of value snacks like multi-pack chips as unemployed and cash-strapped consumers sought affordable daily snacking options.

Market Opportunities: Emerging markets

Emerging markets present significant opportunities for growth in the global packaged pretzels market. These economies are experiencing rapid urbanization and rising disposable incomes. As life becomes busier, packaged snacks that offer portability and convenience are gaining popularity. This shift in lifestyles and eating habits has made packaged pretzels a promising snack category in places like Asia, Latin America, Eastern Europe, Middle East and Africa.

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Insights by product type: Taste drives high growth of traditional salted pretzels

In terms of product type, traditional salted pretzels is expected to contribute 37.8% share of the market in 2024, owing to its unique taste that appeals to consumers. As a versatile snack that pairs well with a variety of dips, drinks and dishes, traditional salted pretzels have remained a classic favorite for generations. Their subtle salty flavor enhances other flavors without overpowering them. This makes them the perfect accompaniment for social gatherings and family movie nights. Compared to flavored varieties, traditional salted pretzels also offer a clean label without artificial colors, flavors or preservatives that some health-conscious consumers prefer. The timeless simplicity and balanced taste of traditional salted pretzels continue attracting new customers as well as retaining loyal brand patrons.

Insights by packaging: Portability powers the popularity of bags/pouches packaging

In terms of packaging, bags/pouches is expected to contribute 52.4% share of the market in 2024, owing to its portability. As a snack that is often consumed on the go, pretzels need packaging that keeps them fresh yet allows easy handling. Re-sealable bags and pouches fulfill this need perfectly. Their slim design fits easily into pockets, bags or lunchboxes, allowing hassle-free snacking anywhere. The packaging preserves pretzel crispness through an airtight seal while letting one portion be accessed at a time. This portable format is ideal for school children, harried professionals, and outdoor activities. It has fast become the default choice for pretzel manufacturers aiming to facilitate convenient consumption.

Insights by distribution channel: Convenience lifts sales at supermarkets/hypermarkets

In terms of distribution channel, supermarkets/hypermarkets is expected to contributes 65.6% share of the market in 2024. This can be attributed to the unparalleled convenience they offer time-starved customers. As one-stop shopping destinations, supermarkets save customers the hassle of visiting multiple specialty stores. Their expansive aisles are well-stocked with all daily need items, including an ample selection of pretzel brands and flavors. Customers can pick up pretzels along with other grocery items during their routine trips. Supermarkets often bundle pretzels with other snack products through meal-deal promotions as well. Their purchasing power translates to competitive prices too. Therefore, supermarkets remain the most pragmatic option for majority of buyers.

Regional Insights

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The North America region currently dominates the global packaged pretzels market. The region is expected to account for 43.4% of the market share in 2024. With countries like the U.S. and Canada, North America accounts for the largest market share. This can be attributed to factors like high consumption levels and strong presence of key manufacturers in the region. The U.S., in particular, has emerged as the leading packaged pretzels market globally. Several major producers like Snyder's, Auntie Ann's, and Bimbo operate out of the U.S. These companies dominate national retail shelves with their varied product lineups ranging from traditional hard pretzels to flavored soft pretzel bites and rolls. Their widespread distribution networks ensure wide availability of pretzel snacks across modern as well as traditional retail channels in the country.  American consumers also have a strong preference for salty snacks like pretzels over other bakery products. The busy lifestyles and emphasis on convenience foods have prompted increased snacking occasions over sit-down meals. This makes packaged snacks an attractive food option. Pretzels are a popular choice owing to their salty yet crisp texture that pairs well with a variety of dips and toppings. Increased merchandising and variety in flavors has further boosted the pretzel consumption.

Moving to other regions, the Asia Pacific market is emerging as one of the fastest growing packaged pretzels market globally. Developing countries, such as India and China, exhibit high growth potential as their populations adopt more Western food habits. Rising disposable incomes also allow consumers to experiment with different snack items, including pretzels. Indian snack makers are recognizing pretzels as an innovative export opportunity. Companies are launching new twists to the classic pretzel shape and flavors tailored for local palates like curries and masalas. These offerings as well as growing health consciousness are helping pretzels gain popularity as an alternative to deep-fried versions. An increase in modern retail also ensures expanded reach for packaged pretzels in semi-urban and rural areas of Asia Pacific's fast developing markets.

Market Report Scope

Key Developments

• In Aril 2024, Multi-Exit Entrepreneurs launched Pretzelized
• In Aril 2024, Crisp Power high-protein pretzels launch in U.S. market
• In March 2024, 7 Mile launched a new pretzel product
• In February 2024, Utz unveiled New Mixed Minis Pretzels
• In 2023, Frito-Lay launched Cheetos Pretzels

*Definition: Packaged pretzels refers to pretzels that have been commercially produced, pre-packaged, and sold as a snack food product.

Market Segmentation

• Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Traditional Salted Pretzels
  • Flavored Pretzels
  • Gluten-Free Pretzels
  • Organic/Natural Pretzels
•  Packaging Insights (Revenue, USD Bn, 2019 - 2031)
  • Bags/Pouches
  • Cans/Jars
  • Boxes
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Supermarkets/Hypermarkets
  • Convenience Stores
  • Online Retail
  • Specialty Stores
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Auntie Anne's Franchisor SPV LLC
  • Campbell Soup Company
  • Conagra, Inc.
  • Frito-Lay, Inc.
  • General Mills Inc.
  • Herr's
  • Intersnack Switzerland Ltd.
  • J&J Snack Foods Corp.
  • Kellogg's Company
  • Mars
  • Mom's Originals, Inc.
  • Mr. Pretzels
  • Old Dutch Foods, Inc.
  • PepsiCo
  • Pretzelmaker
  • Pretzels, Inc.
  • The J.M. Smucker Company
  • The Kraft Heinz Company
  • Tyson Foods, Inc.
  • Utz Brands, Inc.