Snacks in Tanzania

Snacks in 2025: The big picture

In 2025, savoury snacks in Tanzania experienced an increase in value sales, navigating complex economic currents and evolving consumer behaviours. Inflation exerted a notable negative impact across all snack categories, with escalating prices stemming from increased raw material costs, currency fluctuations leading to a weaker Tanzanian shilling against major global currencies, and higher importation, transportation, and fuel expenses. These factors collectively led to increased production costs, which were subsequently passed on to consumers at the retail level. This, compounded by the rising cost of living, particularly in urban areas, disproportionately affected the purchasing power of lower-to-mid-income earners, limiting their ability to afford snacks as frequently as desired. Conversely, upper-mid-to-higher-income earners largely remained unaffected, possessing sufficient disposable incomes to continue indulging in their preferred snacks, as evidenced by the significant presence of premium-priced and imported products in modern retail channels like supermarkets, forecourt retailers, and speciality snack stores.

Key trends in 2025

The trend of intentional indulgences significantly shaped the savoury snacks market in 2025. Consumers, influenced by increasingly hectic lifestyles, deliberately sought out savoury snacks for on-the-go consumption or as convenient meal replacements. This shift reflects a growing demand for quick and satisfying options that fit into busy daily routines. The market capitalised on opportunities for shared impulse purchases and novel consumption occasions, driven by the desire for momentary gratification and practical convenience. This consumer behaviour also prompted shifts in preferred retail channels, with ease of access and immediate availability becoming key factors in purchasing decisions across various income brackets.

Competitive Landscape

Bakhresa Group emerged as the leading company within snacks in Tanzania in 2025, primarily through the robust performance of its two key subsidiaries and their respective brands: Azam Bakeries Company Limited with Azam Biscuits, and Bakhresa Food Products Limited with Azam Ice Creams. Both entities are responsible for producing substantial volumes of sweet biscuits and ice cream brands, along with their diverse variants, which are extensively distributed across Tanzania, reaching both urban and rural areas through all available retail channels. Azam Biscuits continued to lead its segment, driven by its widespread affordability, offering a broad selection of variants and flavours that appeal significantly to mid-to-low-income consumers. Its pervasive availability across supermarkets, local grocers, and the informal market further solidified its leading position. Similarly, Azam Ice Creams maintained its market leadership, appealing to all income segments, including lower-income consumers, through its accessible single-portion offerings and a wide array of variants. The strategic leveraging of both traditional media, through Azam Media TV Company, and digital advertising platforms has enabled Azam brands to achieve extensive audience reach, encompassing both online users and conventional television viewers, thereby reinforcing their strong market presence.

Channel developments

In 2025, supermarkets continued to be the leading distribution channel for snacks overall, with their value share demonstrating growth throughout the year. These modern retail outlets contributed positively to the overall volume growth of snacks due to the inherent ease of product availability they offer. Brands strategically capitalised on consumers' impulse buying tendencies during their visits to supermarkets for other shopping needs. This was achieved through attractive aisle displays designed to entice consumers to pick up products, even when they had not initially planned to purchase snacks. The visually appealing packaging and strong branding of most snack products further enhanced their ability to capture consumer attention and drive sales within these environments.

What next for snacks?

Value sales of snacks are set to rise over the forecast period, demonstrating the industry's resilience despite ongoing economic pressures. While rising costs of living are expected to negatively impact consumption among mid-to-low-income consumers, who may prioritise essential food items over discretionary snack purchases, the industry has developed strategies to navigate these challenges. Producers and brands are not only aiming for survival but also striving for profitability and market share growth, ensuring consumers can continue to indulge in their preferred snacking options. The ongoing urbanisation and the expansion of the middle class in cosmopolitan towns are projected to fuel demand for affordable snacks, leading to a continued influx of locally produced brands. These local offerings are performing well and are increasingly competing for shelf space with imported brands in modern retail channels. Unlike in the recent past, locally produced snacks are now widely available and enjoy high stock-keeping unit presence in modern retail, driven by their lower costs and greater affordability for the majority of consumers. Imported snacks, conversely, are increasingly perceived as premium products for higher-income earners due to their cost implications. Locally produced snacks, typically available in smaller, more affordable pack sizes, will continue to dominate local grocers within residential neighbourhoods, catering to the daily purchasing habits of most Tanzanian households.