38 |^ Progressive Grocer^ |^ Ahead of What’s Next^ |^ July 2019
Category Watch Snacks
Th e branded snacks segment is expanding at the
rate of approx. 15% per annum whereas the entire
market is growing at the rate of 7-8 per cent.
Namkeen is a product essentially known for three
important attributes: a) Taste b) Quality c) Variety.
To elaborate further, namkeens can be characterized
into three segments as:
f Single product segment: Moong Dal, Chana
Dal, Peanut, Nut Cracker, Karare Peanut,
Heeng Jeera Peanut, Masala Matar, Mathri,
Namkeen Pare, etc.
f Single product in bhujia: Plain Sev, Bikaneri
Bhujia, Aloo Bhujia, Punjabi Tadka, Ratlami
Sev, Bhavnagri Gathiya, etc;
f Lots of mix: Navratan Mix, Khatta Meetha,
Chatpata Mix, Magic Mix, Royal Treat,
Kanpuri Mix, Bombay Mix, Kaju Mix, Kashmiri
Mix, All in One, etc.
Th e namkeen market is divided into two
categories: the fi rst category of Indian & ethnic
snacks comprise about 60-65% of market share and
the rest belongs to the Western snacks category
comprising extruded snacks and chips. Th ere is
also the inception of a third type of savory being
developed and called “bridge snacks”, in which
the taste and fl avor is local but the product format
adopted is Western. Th ese products are available in
a very few high-end outlets.
Indian and ethnic snacks are in the traditional
fried category and also a leading trend in the
market. Western snacks are of roasted category
and is a quickly growing segment in India with the
inception of low fat products. However, it may take
several more years to develop this category for the
market. Th e health category is also developing as
a separate one. Traditional snacks boast of proven
human craftsmanship, including cooking and frying
by hand. About fi ve years ago, packaged namkeens
have come to replace western snacks such as potatochips and fi nger sticks as the largest segment within
the branded salty snacks market in India. During
this period, Indian namkeens have grown at faster
pace @ 24-25% as compared to western snacks
growing @ 12% overall.
Th e western snacks category is dominated by
multinationals who are equipped with automated
machines with a high production capacity. In the
past four years, Indian namkeens is growing at
faster pace @22-25% (approx.) as compared to
western snacks growing @12-15% (approx.) overall.
Again, this market is divided into three categories
comprising kids, teenagers, and adults. Th e kid’s
category calls for new packaging and products that
are soft, chewable, spicy, and also come with off ers
of freebies. Kids are always ready to adapt to new
fl avors and due importance has been given to this
aspect by off ering new fl avors as Schezwan, Peri
Peri, Wasabi, and more.
Th e category of gourmet snacks is fast gaining
acceptance with more and more Indians owing
to globalization, overseas travel, and exposure to
new products and fl avors. International gourmet
snacks are now widely available at supermarkets and
modern trade stores. But this wasn’t always the case.
Tortilla chips and nachos are culinary delights from
Mexico and are independent product categories in
markets such as the United States and Mexico.Although,
the Indian
snacks market
continues to be
dominated by
potato chips,
salted savory
snacks and
traditional
sweets, and new
flavors are on
the rise..
.
.