The market value for snack foods in the UK has risen by 26% between 2007 and 2011, despite the economic crunch, according to a new report.

The Key Note Market Report Plus reveals that value is rising because manufacturers are delivering healthy alternatives to consumers as they become more health conscious.

In addition, they are also keeping consumers on their toes by introducing diverse and uncommon flavours.

Finally, the affordability of the products makes snacks popular during economic downturns.

Snacks are no longer regarded as just being a treat or used to fill the gap between meals. They also accompany, even replace, meals, and are nibbled on during home activities, whether it be watching television or entertaining.

In response, manufacturers have produced an array of packaging sizes to accommodate the various occasions when snacks are consumed. Last year saw a surge in both sharing- and multi-packs, in addition to growth in premium snacks due to the emerging trend.

Walkers continues to dominate the market, but smaller companies (such as Seabrook, Tyrrells and Burts Chips) are faring well against their larger counterparts, because they are able to guarantee locally produced, hand-fried and English snacks, as desired by consumers.

Many manufacturers have been maximising sales through innovative competitions, whereby consumers are invited to name, vote or design their own packages and flavours.

This strategy has been very successful and the tactic is likely to continue, particularly as manufacturers tap into the 2012 Olympic hoopla.

Potato crisps are still the most popular product in the snack foods market and accounted for a 48.3% share in 2011.

Although prices in the industry are on the rise, due mostly to high commodity costs, consumers have yet to be deterred. Key Note predicts that the market value will hit 3bn by 2013 and positive growth is expected to continue thereafter to 2016.