The snacks market is divided into extruded and non-extruded product segments. Non-extruded snacks contributed to more than 89.0% of the total market in 2018 owing to the rising demand for healthy products such as cereal and granola bars, which help in lowering cholesterol, regulating digestion, and increasing energy levels in the body. The rising demand for healthy snacks is anticipated to boost the non-extruded segment over the forecast period.

Product manufacturers enjoy the option of altering or modifying the nutritional content of ingredients associated with extruded products. This can be done by altering the digestion capacity of protein and starch. On the other hand, low GI containing extruded snacks can be easily customized as per the requirement to maintain a balance in nutrition levels. Extrusion technology is gaining prominence among key manufacturers across the globe as it allows experimenting with new shapes and designs.

Non-extruded snacks are those food products that are produced without the use of extrusion technology. These products don’t share similar designs or patterns within a package. Thus, demand for these products is driven by the concept of habitual/regular consumption rather than that of aesthetic appeal. Potato chips, nuts and seeds, and popcorn are some of the key examples of non-extruded product variants.

Limited scope in terms of design and texture of snacks associated with the non-extruded segment has prompted key manufacturers to focus on flavor innovation. For instance, in May 2017, NISSIN FOODS, a Japan-based food company, announced its plans to launch its new product-potato chips in Mainland China. The innovative product featured noodle-flavored chips (potato). This move also highlighted the company’s intent to leverage the manufacturing channels and sales of its noodle-producing facility in Guangdong. Such developments are expected to surface and sustain over the forecast period, thereby strengthening the position of the segment.