In today's fast paced world, the importance of snack food products continues to rise, becoming an increasingly integral part of consumers' daily routine. People turn to snacks for a range of reasons from a treat to satisfying a craving, cheering themselves up or just relaxing.
The global snack food market grew from $237.65 billion in 2022 to $256.5 billion in 2023 at a compound annual growth rate (CAGR) of 7.9%. It is expected to grow to $333.12 billion in 2027 at a CAGR of 6.8%.
There have been many deals that were transformative, let’s delve into some of the most notable:
- In June 2022, Mondelēz International agreed to pay at least $2.9 billion for Clif Bar & Company to further expand its reach into the high-growth bar business.
- Confectionery giant Ferrero Group announced in December 2022 a deal to acquire ice cream maker Wells Enterprises, giving it ownership of some of the biggest brands in frozen treats, including Blue Bunny and Halo Top.
- Hormel Foods’ snack brands acquired Planters for $3.35 billion, the largest deal in the Minnesota company’s 131-year history. The acquisition, which also included Cheez Balls and Corn Nuts, instantly made Planters the biggest brand in Hormel’s portfolio.
- J&J Snack Foods acquired Dippin’ Dots, a producer of flash-frozen beaded ice cream treats, for $222 million.
Furthermore, Kellogg’s announced they will split into two companies named Kellanova and WK Kellogg Co by the end of the year. Kellanova will feature a growth-oriented portfolio that is weighted toward snacks and emerging markets and will be led by highly differentiated brands with considerable opportunity for expansion – the MorningStar Farms label, along with Pringles, Cheez-It, Pop-Tarts and other snack brands. The business will also oversee international cereal brands like Frosties/Zucaritas, and Tresor/Krave.