Middle East and North Africa Snack Pellets Market Dynamics and Trends by 2030

The Middle East and North Africa snack pellets market size is expected to grow from US$ 317.90 million in 2022 to US$ 461.34 million by 2030; it is expected to register a CAGR of 4.8% from 2022 to 2030.

Market Insights and Analyst View:

Snack pellets are non-expanded products made from raw materials such as potato, corn, rice, tapioca, multigrain, and others. These pellets are produced dried and semi processed for easy storage and shipment. The semi-processed products are sold to snack manufacturers, where they are further processed by various methods such as frying and hot air baking. The demand for snack pellets is driven by rising inclination toward convenience food products and increasing adoption of advanced technologies in snack pellet manufacturing. In addition, emerging trend of healthy snacking can create lucrative opportunities for snack pellet manufacturers to develop healthy snack pellets such as multigrain-based pellets and vegetable-based pellets.

Growth Drivers and Challenges:

Extrusion technology, a crucial process in snack pellet production, has evolved over the years, enabling manufacturers to create diverse snack products with improved quality, texture, and taste. These technological advancements have increased production efficiency and facilitated the creation of innovative and appealing snack options, catering to the changing preferences of consumers in the region.  One of the notable advancements in extrusion technology that has influenced the MENA snack pellets market is the development of twin-screw extruders. The extruders offer enhanced control over the cooking and expansion processes, resulting in consistent texture and taste of snack pellets. Incorporating twin-screw extruders allows for a wider variety of raw materials, including grains, pulses, and vegetables, for snack pellet production. This innovation has enabled manufacturers to produce healthier and more nutritious snack options that can align with the growing demand from snack manufacturers.

Furthermore, integrating 3D printing technology into the extrusion process has opened new avenues for snack pellet customization. This technology enables manufacturers to create intricate and attractive shapes, enhancing the visual appeal of the final snack products. This advancement has proven beneficial in marketing to younger demographics and families who value novelty and visual appeal in their snack choices. The customization potential offered by 3D printing in extrusion has contributed to expanding the snack pellets market in MENA by offering unique snacking experiences.

Fluctuations in the prices of key raw materials, such as grains and pulses, can directly impact the cost structure for manufacturers. Since snack pellets rely heavily on these raw materials, any substantial cost increase can lead to escalated production expenses. Due to cost pressures, manufacturers absorb additional expenses that can adversely impact their profit margins, or they pass them on to consumers, potentially affecting snack products' affordability and consumption rates. Energy and utility costs also play a pivotal role in increasing the overall cost of snack pellet production. The extrusion process, which is integral to snack pellet manufacturing, requires a significant amount of energy. The volatility of energy prices and potential supply disruptions challenge manufacturers to maintain consistent and predictable production costs. High energy costs can directly impact profit margins and might necessitate cost-cutting measures, which could compromise product quality and hinder innovation efforts. This situation highlights the delicate balance manufacturers must strike between maintaining product quality and managing production costs.

Report Segmentation and Scope:

The Middle East and North Africa snack pellets market is segmented on the basis of source, type, form, and country. Based on source, the Middle East and North Africa snack pellets market is segmented into potato, corn, rice, tapioca, multigrain, and others. By type, the market is bifurcated into plain and flavored. By form, the Middle East and North Africa snack pellets market is segmented into laminated, die face, tri dimensional, and others. By country, the Middle East and North Africa snack pellets market is segmented into Saudi Arabia, the UAE, Egypt, Morocco, and the Rest of Middle East and North Africa.

Segmental Analysis:

Based on type, the Middle East and North Africa snack pellets market is segmented into plain and flavored. The plain segment holds a significant share of the Middle East and North Africa snack pellets market. However, the market for the flavored segment is expected to grow significantly during the forecast period.  The demand for plain snack pellets is upsurging across the region due to their neutral flavor and versatile nature. These snack pellets serve as a blank canvas, allowing snack manufacturers to add a wide range of flavors, appealing to the diverse tastes of the local population. Key factor driving the popularity of plain snack pellets is their compatibility with traditional Middle Eastern and North African spices and seasonings.

Country Analysis:

Based on country, the Middle East and North Africa snack pellets market is segmented into Saudi Arabia, the UAE, Egypt, Morocco, and the Rest of Middle East and North Africa. The Middle East and North Africa snack pellets market was dominated by Egypt, which accounted for US$ 72.42 million in 2022. The UAE is the second major contributor to the market. The UAE snack pellets market is growing due to changing consumer preferences for ready-to-eat products, rising urbanization, and growing demand for convenient and on-the-go food options. The increasing demand for snacks with diverse flavors inspired by different cuisines, owing to the presence of a multicultural population, propel the market growth in the country. Moreover, the rising demand for healthier snack options has propelled the development of snack pellets made with multigrain, vegetable, and alternative flours, which has provided an opportunity for snack pellets manufacturers in the country.

Industry Developments and Future Opportunities:

Initiatives taken by the key players operating in the Middle East and North Africa snack pellets market are listed below:

• In 2020, Quality Pellets AS launched its first certified organic and quinoa-based seaweed pellets across its operating regions, including Europe, the Middle East & Africa, and Asia.

COVID-19 Pandemic Impact:

Before the COVID-19 pandemic, the Middle East and North Africa (MENA) snack pellets market was majorly driven by strong demand for cereals, grain & pulses; rising awareness regarding the health benefits of healthy and value-added nutritional food products; and growing preference of consumers for exploring different convenient and on-the-go snacking options. However, the COVID-19 pandemic adversely affected economies such as the UAE, Saudi Arabia, Nigeria, and Africa and almost every industry, including food & beverages. The pandemic significantly disrupted the agricultural supply chains. Lockdowns, trade bans, and border restrictions hampered the production and supply of raw materials such as potatoes, wheat, corn, barley, and other cereals and pulses. The agricultural yield was reduced significantly due to lockdown restrictions, labor shortage, and nationwide business shutdown. Initially, in 2020, consumers started panic buying due to low production of snack options and fear of lockdown, which created a massive shortage of agricultural produce.

Many businesses recovered as the governments of various countries eased the restrictions after the initial months of lockdown in 2020. The introduction of the COVID-19 vaccine offered relief from the distressing pandemic situation, leading to a rise in business activities. Manufacturers of snack pellets overcame the demand and supply gap as they were permitted to operate at full capacity. Therefore, the resumption of operations in the manufacturing units positively impacted the snack pellets market in the Middle East and North Africa (MENA).

Competitive Landscape and Key Companies:

Bach Snacks SAL, Societe Cooperative Agricole Limagrain, Crunchy Food FZE, GHANEM ALMOUNAJED MD, Quality Pellets AS, and SOLINO Ltd Corp SaRL are among the prominent players operating in the Middle East and North Africa snack pellets market. These market players are adopting strategic development initiatives to expand, further driving the Middle East and North Africa snack pellets market growth.

Middle East and North Africa Snack Pellets Report Scope