44 |^ Progressive Grocer^ |^ Ahead of What’s Next^ |^ July 2019
Category Watch Snacks
Demand Accelerators
Innovative products & variants: Th e Indian snack
market has always been known to surprise and
delight its consumers with innovative and great
tasting off erings. Th e new fl avors are inspired by
the food culture and the fun spirit of Indians. By
tweaking their product off erings to suit the taste of
Indian consumers, snack brands have launched new
variants of the products to cater to region-specifi c
demand, which has widened the consumer base. For
instance, in biscuits alone, there are more than 34
varieties to choose from, providing customers with
a wide range of variety. Similarly, Mexican snack
nachos are available in more than ten International
fl avors to cater to the Indian palate.
Product features and attributes: Taste
followed by health fi gures prominently as the
factors infl uencing the choice of snacks by Indian
consumers. As per Mintel’s research, almost one in
three (29%) adults who snack said taste was their
priority when it comes to choosing a snack followed
by health, which was chosen by 25% of consumers.
Products that get the elusive balance of health and
indulgence right stands to gain the most.Taste is the most important criteria in the
choice of a snacking product. Indian consumers
are looking for snacks that are fresh, crisp and
fl avorful. Freshness is also one of the top criteria
in choosing a snacking product. While nearly
three-quarters of consumers wish there were
healthier snack options, more than three in fi ve
agree that taste is more important than how healthy
the snack is for them. So to keep the balance
between Health & Indulgence is the mantra for
success in snacking segment.
Price points: Adoption of low-cost pricing
strategies to make the product aff ordable for
consumers has also enhanced the consumer base for
the snack category. Price is a primary factor in snack
purchases, particularly in rural areas, which tend
to be characterized by lower levels of disposable
income. Consequently, the aff ordability of small
pack sizes plays an important role in stimulating
demand in the rural regions. Consumers are always
tempted to shift their choices and preferences
whenever new products are launched or various
marketing and pricing campaigns of diff erent
brands are introduced.
Brands are coming up with unique propositions
for customers and matching the product’s features
with smart packaging and attractive price points
(MRP Rs. 5 and Rs. 10 pack sizes) to convince
them to consume more. A meticulous pricing
strategy that makes snack brands accessible at
aff ordable price points is one of the biggest USPs
why snack products are now being bought by all
sections of consumers.
Looking at snack food consumption and how
it has evolved over the past fi ve years and how
the category will develop in the future, analysts
say that snack foods that will grow in the near
term are ones that embody wellness benefi ts, like
snacks with more protein; portable snacks that fi t
into busy lives; and ones that feature unique fl avor
mashups. Even indulgent snack foods are staging
a comeback by walking a line between health and
enjoyment. Low-calorie, high-protein ice-cream
is one such example of a benefi cial snack food that
meets consumers’ desire for decadence. Brands that
support moderation as a rationale to indulge are
also benefi ting, like thinner versions of cookies.
So, snack foods will continue to evolve, both as
between-meal snacks and as part of main meals
and each of these snack food roles is changing in
diff erent ways in reaction to consumers’ desire for
balance, portable snack foods and holistic wellness.
Also, consumers’ snack food choices aren’t limited
strictly to fl avor and the emerging attributes for
snack food consumers will be items that encompass
uniqueness and sensory elements such as texture,
heat and aromatics. Snacking is no longer just about
eating when you’re bored, or eating for additional
sustenance. Today and in the future, snacking isBy tweaking their
product offerings
to suit the
taste of Indian
consumers, snack
brands have
launched new
variants of the
products to cater
to region-specific
demand, which
has widened the
consumer base.