Snacks performed well in 2022 despite the impact of the economic crisis, import restrictions and government policies that are unfavourable to local production in some categories. Profit margins are being squeezed by rising raw material costs and this, combined with changing lifestyles, urbanisation and increased customer sophistication, have forced companies to review many aspects of their operations.
By the start of 2022, almost all of the key players in the snacks industry in Sri Lanka had already begun to devise successful plans to mitigate the impact of the COVID-19 pandemic on their business operations. Despite the weaker performance in the horeca channel, specifically in terms of foodservice sales of snacks via hotels, decreases in revenue the and the foodservice channel were mitigated by higher retail sales growth, which apply to both traditional and modern retail channels, as the preference for at-home consumption supported higher demand in the retail channel.
During 2022, snacking habits that first emerged at the peak of the COVID-19 pandemic in 2020 remained in evidence among the population of Sri Lanka. Among the most notable shifts in consumer preferences are the increased willingness to replicate out-of-home snacking experiences in the home environment, which has led to a stronger preference for premium products.
Recent years have seen major changes in consumer demand across Sri Lanka is packaged food industry, but especially in snacks. This has flowed from major changes that have been seen in consumer lifestyles, accelerated urbanisation and increased customer sophistication.
While 2022 brought some respite from the challenges posed by the COVID-19 pandemic for key players in the snacks market, the economic crisis brought with it a new set of issues that needed to be addressed. Many of the key names in snacks made strong attempts to ensure efficient manufacturing and distribution of their products.
Snacks is slated for positive volume growth over the forecast period, despite the uncertainty that remains to see the COVID-19 pandemic and the negative impact of the ongoing economic crisis. Even though consumer spending remains under pressure, most of the leading players in the snacks market remain optimistic of a sustained recovery in business activity over the short-to medium-term, despite the lingering impact of the pandemic and the unfavourable political and economic situation which prevailed in Sri Lanka during 2022.
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Understand the latest market trends and future growth opportunities for the Snacks industry in Sri Lanka with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to a comprehensive range of core packaged food categories.
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This report originates from Passport, our Snacks research and analysis database.
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