India Snacks Market Outlook to 2028

India Snacks Market Overview

The India snacks market is valued at USD 14.28 billion in 2023. The market is projected to grow consistently, since it has grown at a CAGR of 9.3% from 2018 to 2023. This growth is driven by increasing urbanization, rising disposable incomes, and a growing preference for convenient snacking options.

The Indian snacks market is highly competitive with both multinational and domestic companies having a strong presence. Key players include Haldiram’s, Pepsi Co, Balaji Wafers, Britannia Industries, and ITC Limited. These companies have a wide distribution network and diverse product portfolios catering to various consumer tastes.

In 2022, Haldiram's announced a significant investment of USD 100 million to set up new manufacturing units in North and West India. This development underscores the ongoing expansion efforts within the industry to meet the growing demand for snack products.

India Snacks Current Market Analysis

A major growth driver for the Indian snacks market is the rising trend of on-the-go consumption among India's bustling working-class population. Additionally, the increasing popularity of healthier snack options, like roasted and baked snacks, reflects a broader health and wellness trend influencing consumer choices.

The India snacks market plays a crucial role in the food processing industry, generating substantial employment and fostering growth in related sectors like agriculture and retail. This growth not only supports thousands of jobs directly within the industry but also stimulates demand for agricultural produce and fuels retail expansion across the country.

Western India, particularly Maharashtra and Gujarat, dominates the snacks market due to strong regional preferences for snack foods, higher disposable incomes, and the presence of major players who have established manufacturing and distribution networks in these areas.

India Snacks Market Segmentation

By Type: In 2023, the India Snack Market is segmented by Product Type into Savory, Sweets, Health and Other Snacks. The dominant segment in India's snack market is due to the variety and cultural preference for savory flavors. Indian cuisine traditionally emphasizes a rich array of savory dishes, making organic options in this category particularly appealing.

By Distribution Channel: In 2023, the India Snack Market is segmented by Distribution Channel into Supermarkets, Convenience Stores, Online Retail and Others. Supermarkets dominate the market due to their convenience, offering consumers a one-stop shop for a wide variety of products. They provide easy access to Indian snacks which are always in demand.

By Region: In 2023, the India Snack Market is segmented by Region into Northern, Southern, eastern and Western market. Northern region dominates the snacks market because it has a high preference for savory snacks like samosas, kachoris, and namkeen, which are popular among consumers of all age groups.

India Snacks Market Competitive Landscape

Market Players

Establishment Year

Headquarters

Haldiram's

1937

Nagpur, India

Pepsi Co

1965

New York, USA

Balaji Wafers

1982

Rajkot, India

Britannia

1892

Bangalore, India

ITC Limited

1910

Kolkata, India

Pepsi Co India: Announced in 2023 that Pepsi Co India achieved its goal of sourcing 100% of its potatoes used for chips from sustainable farming practices. This initiative is part of Pepsi Co’s global agenda to enhance agricultural practices and reduce its carbon footprint, aligning with the increasing consumer preference for environmentally responsible products.

ITC Limited: In late 2022, ITC expanded its snack portfolio by introducing gourmet snack options under its Bingo! brand. The new product line includes flavors like Peri Peri Spice and Royal Cumin Pita, which are aimed at premium snack consumers.

Balaji Wafers: In 2022, Balaji Wafers launched a series of snacks flavored with regional spices from different parts of India, resulting in a 12% sales increase for these products. Invested in state-of-the-art automation technologies in 2023, which enhanced production efficiency by 25% and reduced operational costs.

India Snacks Market Industry Analysis

India Snacks Market Growth Drivers

Urbanization and Busy Lifestyle: According to the National Sample Survey Office (NSSO), urban households which has reached the population size of 377.1 million as of 2011, spend on average 25% more on packaged snacks compared to their rural counterparts. The trend highlights the impact of urbanization on consumer behavior, particularly in metropolitan cities like Mumbai and Delhi where fast-paced lifestyles.

Health and Wellness Trends: The health and wellness trend has gained significant traction within India. According to a report by FICCI, there has been an increase in the demand for healthier snack options such as roasted, non-fried, and organic snacks over the past three years. This shift towards healthier products is supported by rising health consciousness fueled by increased access to health information through digital media.

Technological Advancements in Food Processing: The Indian Institute of Food Processing Technology (IIFPT) highlights that advancements such as high-pressure processing and vacuum frying are boosting the snack food market in India. Companies adopting these technologies achieve higher consumer satisfaction by enhancing taste and freshness.

India Snacks Market Challenges

Regulatory and Quality Assurance Issues: The implementation of the Food Safety and Standards Authority of India's (FSSAI) new packaging. According to FSSAI reports, these regulations require higher standards for packaging materials and labeling, which necessitate additional investment in quality assurance processes and equipment, challenging the operational efficiencies of manufacturers.

Intense Market Competition: This intense competition has forced companies to reduce the average price of snacks by 5% over the past five years to retain market share. Business Standard noted that this price war, especially in densely populated urban areas, is squeezing the profit margins of established players, affecting their revenue growth despite increasing volumes.

Consumer Shift Towards Fresh and Unprocessed Foods: A consumer trend towards fresh and unprocessed foods has been growing, attributed to rising health consciousness among Indian consumers. This shift has resulted in a 3% decline in the market share of processed snacks over the past five years, as reported by The Hindu.

India Snacks Market Government Initiatives

Startup Support: Government programs aimed at fostering innovation have spurred the entry of new players in the snacks market. Initiatives like Startup India not only provide funding but also offer mentorship and incubation, crucial for navigating the competitive landscape. Since the inception of Startup India in 2016, over 50 new snack startups have received support.

Make in India: This initiative has helped local snack manufacturers reduce production costs and improve supply chain efficiencies, as noted by the Department of Industrial Policy and Promotion. Since its launch in 2014, there has been a reported 30% increase in domestic production of snack products.

GST Implementation: The implementation of the Goods and Services Tax (GST) in 2017 has been beneficial for the organized snack sector by streamlining tax processes. According to a report by the Federation of Indian Chambers of Commerce & Industry (FICCI), the simplification of tax structures has improved the operational efficiency of snack companies by approximately 18%.

India Snacks Market Future Outlook

The Indian snacks market is projected to grow exponentially. This growth is anticipated to be driven by continued urbanization, an increase in health-conscious products, and innovation in flavors and packaging to attract the young population.

Future Market Trends

Health-Conscious Offerings: As health awareness is escalating, the Indian snack market will respond with a robust expansion in health-conscious product lines. According to a report by the Health Foods and Dietary Supplements Association (HADSA), sales of low-calorie, low-sugar, and high-fiber Snack will increase, as more consumers are prioritizing health, especially post-pandemic, the market for these healthier options is forecasted to grow annually over the next five years.

Premiumization of Snacks: The trend towards premiumization in the Indian snack market will gain momentum as disposable income is rising. The premium snack segment has grown annually since 2018 and is about to take the upper route, outpacing the overall snack market growth. Since consumers are increasingly seeking gourmet and artisanal snacks that offer unique flavors and high-quality ingredients.

Localized and Customized Products: Regional preferences in flavors and ingredients will significantly influence snack purchases. According to FICCI, localized snack options have witnessed a growth over the last three years and expected to grow in the upcoming years too. Customized snacks, which cater to specific dietary needs such as gluten-free and vegan, are also expected to have a significant demand in coming years.
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