Packaged Facts: Salty Snack Sales Bolster PepsiCo's Q2 Earnings

More than half of U.S. salty snacks market is controlled by PepsiCo, according to the Packaged Facts report "Salty Snacks: U.S. Market Trends and Opportunities"

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Packaged Facts

Jul 12, 2018, 09:20 ET

ROCKVILLE, Md., July 12, 2018 /PRNewswire/ -- PepsiCo controls about 60% of retail sales in the $24 billion U.S. salty snacks market through its Frito-Lay division, according to market research firm Packaged Facts in the report Salty Snacks: U.S. Market Trends and Opportunities. The company competes across all categories and is a leader in most. Other major players each have less than 10% share of the salty snacks.

PepsiCo's dominance in the snack industry has clearly served the company well. On Tuesday, July 10, PepsiCo revealed that its fiscal second-quarter earnings exceeded analysts' expectations largely because the sales of Cheetos and other salty snacks offset the company's sluggish sales from its soft drink segment.

The Frito-Lay division—which includes popular brands such as Cheetos, Doritos, Ruffles, Lays and Tostitos—was up 4% in the second quarter, according to PepsiCo's announcement. The company's snack division will likely continue to thrive in the wake of PepsiCo's May 2018 acquisition of baked fruit and vegetable company Bare Foods. The acquisition keeps PepsiCo on pace to meet consumer demand for healthier snack food options and potentially positions PepsiCo to build a base for broader business of plant-based snacks.

Looking ahead to 2022, Packaged Facts expects PepsiCo will continue to lead the salty snacks market by a large margin. Despite challenges and competition to the segment from other snacks—namely chocolate and non-chocolate confections, cookies, and crackers, as well as nuts, seeds, and dried and fresh produce—the salty snacks market is projected to grow over the next several years. Packaged Facts forecasts the salty snacks market will have sales of $29 billion in 2022.

Market growth will come partly from the efforts of PepsiCo and other companies offering products that are as flavorful as possible but also as healthy and nutritious as possible to satisfy the growing demand among consumers who want to indulge without the guilt. This includes a rise in "better for you" snacks will continue to use alternative (non-potato) ingredients and include different proteins, grains, vegetables, and superfoods.

About the Report

Salty Snacks: U.S. Market Trends and Opportunities' market coverage spans all retail channels of distribution that carry salty snacks such as supermarkets and other food stores, mass merchandisers, convenience stores, warehouse clubs, drug stores, dollar stores, specialty stores, catalogues, Internet retailers, and manufacturers own websites. Market size data are provided at the retail sales level for the 2012-2017 period and projections for 2017-2022 period. Additionally, the report forecasts to 2022 U.S. salty snack demand and shipments in nominal US dollars at the manufacturer level.

View additional information about Salty Snacks: U.S. Market Trends and Opportunities, including purchase options, the abstract, table of contents, and related reports at Packaged Facts' website: https://www.packagedfacts.com/food-beverage-market-c84/.

About Packaged Facts

Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Packaged Facts also offers a full range of custom research services.

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SOURCE Packaged Facts