India Savory Snack Market Overview to 2028

India Savory Snack Market Overview

The Indian savory snack market has experienced significant growth, this is reflected in its valuation, which reached USD 5.1 billion in 2023, driven by increasing urbanization and a shift in consumer preferences towards ready-to-eat foods, alongside rising disposable incomes and a growing young population with a preference for convenience foods.

Key players in the Indian savory snack market include PepsiCo India, ITC Limited, Parle Products, Haldirams, and Balaji Wafers. These companies dominate the market through extensive distribution networks and a wide range of product offerings. PepsiCo, with its flagship brand Lays, and ITCs Bingo! have substantial market shares due to their strong brand presence and consistent innovation.

In 2023, PepsiCo India announced an additional investment ofINR 186 crorefor the expansion of its food manufacturing plant inMathura, Uttar Pradesh. This brings the total investment in that facility toINR 1,022 crore. The expansion aims to enhance production capabilities for brands likeLaysandKurkurein response to rising demand.

Major cities like Mumbai, Delhi, Bangalore, and Hyderabad dominate the savory snack market due to their high population density and rapid urbanization. These cities have a large number of working professionals and students who prefer convenient snacking options.the presence of modern retail outlets and a high concentration of supermarkets and hypermarkets contribute to the dominance of these cities.

India Savory Snack Market Segmentation

By Product Type: The Indian savory snack market is segmented by product type into potato chips, extruded snacks, and nuts & seeds. In 2023, potato chips held the dominant market share due to their widespread popularity and strong brand presence of leading players like Lay’s and Bingo! The crunchy texture and variety of flavors available in potato chips appeal to a broad consumer base, making them a preferred choice among snack lovers.

By Distribution Channel: The market is also segmented by distribution channel into supermarkets/hypermarkets, convenience stores, and online retail. In 2023, supermarkets and hypermarkets dominated the market with a significant share, primarily due to their extensive reach and ability to offer a wide variety of products under one roof. Consumers prefer these channels for their convenience and the opportunity to explore different brands and flavors.

By Region: The regional segmentation of the Indian savory snack market includes North, South, East, and West. In 2023, the North region indeed held the largest market share, primarily driven by high consumption in urban centers such as Delhi and Chandigarh. The preference for spicy and tangy flavors is particularly pronounced in this region, which is complemented by a robust distribution network that enhances accessibility and availability of these snacks.

India Savory Snack Market Competitive Landscape

Company

Establishment Year

Headquarters

PepsiCo India

1989

Gurgaon, Haryana

ITC Limited

1910

Kolkata, West Bengal

Parle Products

1929

Mumbai, Maharashtra

Haldirams

1937

Nagpur, Maharashtra

Balaji Wafers

1974

Rajkot, Gujarat

PepsiCo India: In 2023, PepsiCo India announced an investment of INR 186 crore for the expansion of its food manufacturing facility in Mathura, Uttar Pradesh, which aims to increase production capacity and create job opportunities. This expansion is expected to generate over 1,500 direct and indirect jobs.

Parle Products: On August 26, Parle Products launched three new products under its traditional snacks brand, Chatkeens, in anticipation of the festive season. This includes a regional specialty, Gujarati Mixture, and Lite Chiwda, aimed at addressing the growing demand for snacks during festivals. The new products will be available in small 20-gram packs priced at USD 5, with plans to introduce larger sizes later.

India Savory Snack Market Analysis

India Savory Snack Market Growth Drivers

Increased Health Awareness: The Indian savory snack market is witnessing a significant shift towards healthier options, driven by rising consumer health consciousness. In 2024, it is projected that the demand for low-calorie and nutritious snacks will surge, with the Health and Wellness sector contributing approximately USD USD 1,500 crore to the overall snack market. This trend is supported by a report from the Food Safety and Standards Authority of India (FSSAI).

Expansion of E-commerce Platforms: The growth of e-commerce is reshaping the distribution landscape for savory snacks in India. By 2024, online sales are expected to account for around USD 10,000 crore of the total snack market, reflecting a substantial increase from previous years. This growth is propelled by the increasing penetration of the internet and mobile devices.

Innovative Product Offerings: The savory snack market is experiencing a wave of innovation, with manufacturers introducing unique flavors and healthier alternatives. In 2024, it is anticipated that the introduction of gourmet and artisanal snacks will grow by USD 2,000 crore, as brands capitalize on the trend of premiumization.

India Savory Snack Market Challenges

Health Concerns Related to High Salt and Fat Content: The savory snack market faces scrutiny due to health concerns associated with high salt and fat content in many products. In 2024, a report by the Ministry of Health and Family Welfare highlighted that a significant number of Indians suffer from hypertension, partly due to excessive salt intake from packaged snacks. This has led to increased calls for regulatory actions and the promotion of healthier snack alternatives.

Supply Chain Disruptions: The savory snack market has been impacted by supply chain disruptions, particularly in the procurement of raw materials and distribution logistics. In 2023, disruptions caused by transportation strikes and labor shortages led to a noticeable decline in the availability of certain popular snack brands in the market. Government data indicates that supply chain inefficiencies continue to challenge manufacturers in maintaining consistent product availability.

India Savory Snack Market Government Initiative

Healthy Snacks Initiative: In 2024, TheIndian Healthy Snacking Summit, held in July, brought together industry leaders to discuss trends in healthy snacking and promote awareness about nutritious eating habits. The event emphasized the importance of reducing unhealthy ingredients such as salt and artificial additives in snacks.

FSSAI Regulations for Packaged Foods: The Food Safety and Standards Authority of India (FSSAI) has recently implemented stricter regulations concerning packaged foods, particularly focusing on nutritional labeling. As of July 6, 2024, manufacturers are now required to displaysaturated fat, salt, and sugar levelsin bold letters and larger font sizes on food packaging.

India Savory Snack Market Outlook

The Indian savory snack market is projected to grow substantially, driven by continued urbanization and evolving consumer preferences. Innovations in product offerings, such as the introduction of healthier and organic snack options, will cater to health-conscious consumers.

Future Trends:

Increase in Health-Conscious Consumer Base: By 2028, the Indian savory snack market will see a shift towards healthier snack options. The health-conscious consumer base is expected to double, driven by awareness campaigns and government initiatives promoting healthy eating habits. Data from the Ministry of Health projects that the consumption of low-fat and baked snacks will become a major portion of the total snack market by 2028.

Innovative Flavor Development and Customization: The future of the savory snack market will be marked by the development of innovative and customizable flavors. Manufacturers will invest in R&D to create flavors that cater to regional tastes and preferences. By 2028, over 300 new flavors are expected to be introduced, with a focus on local and ethnic flavors.
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