India: Tortilla Chips, Pretzels and Expanded Snacks Market and the Impact of COVID-19 on It in the Medium Term
The tortilla chips, pretzels and expanded snacks market in India was equal to 1.33 billion USD (calculated in retail prices) in 2015. Until 2025, the tortilla chips, pretzels and expanded snacks market in India is forecast to reach 4.52 billion USD (in retail prices), thus increasing at a CAGR of 7.19% per annum for the period 2020-2024. This is a decrease, compared to the growth of about 20.30% per year, registered in 2015-2019.
The average consumption per capita in value terms reached 1.03 USD per capita (in retail prices) in 2015. In the next five years, it grew at a CAGR of 18.92% per annum. In the medium term (by 2025), the indicator is forecast to slow down its growth and increase at a CAGR of 6.05% per annum.
As an overall, the market for most snack foods is projected to continue its positive trend. Some of the most important factors, driving the snack foods industry in the next few years are expected to be convenience and portability, health and safety, as well as category innovation. Tortilla chips, pretzels, expanded snacks, as well as nuts and seeds, are becoming more suitable for the new and improved lifestyles of today’s consumers. The increasing interest in healthier diets is also projected to offer opportunities in the segment of special foods that are differentiated through health, functional, organic or indulgent aspects.
Another important demographic factor is the urbanization of the population – more and more people are moving from rural areas to urban ones. All these trends tend towards a busier and more active lifestyle, in which the consumers do not have that much free time. Consequently, most of the people, nowadays, have little time to prepare and cook meals from scratch, due to which are more likely to opt for quick and convenient meal options. As it becomes difficult for people to find the balance between family, work and personal priorities, it is no surprise that most consumers prefer ready meals, takeaway and delivery instead of cooking, as well as snack foods such as tortilla chips, pretzels, extruded snacks, expanded snacks, potato chips, nuts and seeds. This is especially valid for younger generations, particularly millennials. So, snack foods have become especially popular among consumers, who would rather spend more time on non-cooking activities. At the same time, people are also looking for healthy varieties of snacking. Dried fruit has natural sugar, that is considered healthier, which is why the use of fruit as a replacement for sugar has been considerably growing. Meanwhile, dried fruit use in snacking is also gaining traction and companies are exploiting this trend by offering “snackable” dried fruit, nuts and seeds, most frequently in the form of bars. In addition, fruit-based snacking and bars are usually packaged into convenient individual items and are being redefined as somewhere between healthy and indulgent.