Snacks Category Watch
options that include nachos, dehydrated vegetable
chips, roasted and baked chips and popcorn. Th e
veggie chip market is showing a 17% annual
growth. Indian demography, by its virtue, holds
a prominent place for vegetarians by choice or
customs, especially in and around northern India.
More so, when there are all vegetarian no-garlic,
no-onion options to go along with, this category is
bound to grow in leaps and bounds, as it is about
meeting the growing consumers’ needs.
Young India’s preference for on-the-go, dry
snacks have gone several notches up in the past
decade. Foreign brands entering India post-
liberalization, in the ‘90s, have acted as the chief
propeller for this trend. Although, the Indian
snacks market continues to be dominated by potato
chips, salted savory snacks and traditional sweets,
new fl avors are on the rise. Th anks to the changing
tastes of the Millennials and the emerging health
trends, the consumer is willing to experiment and
has become receptive to fresher, newer ideas. A
number of factors like mass media, social media
and frequent international vacations, have become
the catalysts for fostering these changes. Th ese
platforms are introducing the Indian taste buds to
new global delicacies and fl avors, and gaining access
to information about them is just a click away.
Today, consumers want a variety of easy-to-
carry, price-eff ective snacks that do not compromise
on taste and nutrition. Teenagers, being health
conscious, look for healthier and high-grade
products and they also have attraction for new
products. Adults look for the brand and price
and they want their money spent well; hence the
quantity aspect too forms a key consideration in
their choice making.
Th e average annual per capita consumption
of commercial snacks in India is 500 gm. India
currently exports nearly $3 million worth of savory
snacks, including extruded or expanded products,
registering a Y-O-Y growth of almost 22-23 per
cent annually. Th e top fi ve countries for exports are
the USA as the prime market followed by Australia,
Salty snacks
is the largest
selling snack
product in
terms of retail
value sales with
a contribution
of 55%-58%
of total value
sales within
snacks in India.
It is also the
largest in terms
of volume
share.Today, more than ever before, eating occasions are now overwhelmingly
linked with snacks. Be it ready-to-eat popcorn, veggie chips or nuts, snack
items considered better-for-you options are driving sales growth in snack
food categories. The growing demand for foods and beverages with unique
qualities – natural, functional, energizing, satiating and convenient – are
causing consumers, manufacturers and retailers to rethink the traditional snack
category, with products continuing to evolve and lines increasingly blurring.
Retailers and brands should join hands to promote snacks by helping consumer
to shop better and buy products that suit their taste preferences. This can
happen only with their combined efforts and will help pave the way to even
bigger innovation and expansion in the snacks category.
July 2019 | Ahead of What’s Next |^ Progressive Grocer |^33
Th ailand, Israel and the UAE due to the huge
Indian expat population in these countries.
Consumers from western India are the leading
snack consumers, followed by the North. As the
population from various regions of the country have
been migrating towards urban business centres –
resulting in a diversifi ed demography in those urban
centres – the people have also retained their food
habits irrespective of the place they are relocating
to. As a result, there is a considerable rise in the
demand for local favored snacks in other parts of
the country.
For instance, staple Gujarati snacks such as
khakra, phapra and dhokla are available in packaged
form across all parts of the country since the Gujarati
population has been migrating towards the northern,
southern and eastern part of the country due to
professional reasons. Th is trend is strong in savory
snacks, which is growing at 14% CAGR since 2015
in retail value at constant prices. Analysts say that
future growth in both salty and savory snacks will be
driven by consumers’ rising disposable income and
changing lifestyles and by manufacturers’ product
innovation and expansion of distribution into
lower-tier cities and rural areas.
Most of the traditional snacks such as
khakra, phapra, murukku and chakli,
which were previously prepared
at home, are now available in
packaged form. Analysts say
that the market will be promising
for any traditional snack that is
yet not available in the market