48 |^ Progressive Grocer^ |^ Ahead of What’s Next^ |^ July 2019
Category Watch Snacks
penetrate newer markets and make their presence
felt is seen in the new strategies adopted by them.
From exploring the online channel to having
dedicated teams working on the expansion of
retail, brands are leaving no stone unturned. As
e-commerce is witnessing a tidal surge, brands
should actively pay heed to this new trend. Th eir
products should be available on leading grocery
e-tailers, and they should continue to launch new
combo packs to give an enhanced presence to
their brand in the retail space besides conducting
extensive wet sampling in top modern retail outlets
to promote healthy snacking.Way Forward
Going forward there will be increased focus on
continuous product innovation to stay relevant and
combat competition. Th e other major challenge will be
to get it right on the packaging, taste, price, and local
trade practices for specifi c regions. Indian consumers
are increasingly inclined to quality, well packaged
snacks as these are commonly associated with greater
credibility, longer shelf life, and better product.Snacks in small packages will become highly
relevant in the Indian market. Th e demand for small
snack packs has increased considerably over the past
few years, especially in the rural regions of India.
Th is is because price is a primary factor in snack
purchase and small pack sizes can be marketed
at lower unit prices, making the product more
aff ordable. As consumer loyalty is low in snacks,
small snack packs, besides being portable and
convenient, are an eff ective way for manufacturers
to constantly engage their consumers through
frequent introduction of novel fl avors and off erings.
However, the long-term benefi ciaries will
be those that manage to engage the consumers
with innovative and unique products for Indian
consumer with the products having the right mix
of quality and aff ordability. Only those who strive
to provide diff erentiated off erings of high quality
and taste to the consumers will stand to gain
and benefi t. “Retailers believe that the two most
important factors that will drive the growth of
the snack category are a commitment to healthier
choices and diversity in off erings that appeal to
niche consumers (i.e. organic, gluten-free, etc.).
Th ere exists a big opportunity for retailers and
manufacturers to shine the spotlight on the latest
choices for health-minded snackers through
sampling eff orts, consumer education and unique
promotions,” opines Goenka of Spencer’s Retail.
Going ahead, the snacks category in India will see
the launch of new health-orientated savory snacks,
including multigrain products, low calorie products,
and snacks with low levels of fat and cholesterol. Th e
range of snacks tailored to local tastes will broaden
as regional players expand and international players
develop their brands more. Niche western snack like
tortillas will gain in prominence in the Indian sub-
continent and so will the traditional Indian snacks
like namkeens, bhujia, daal, bhakarwadi, khakhra,
chakli, kodublae, which were mostly region-specifi c.
Companies have immense opportunities to
venture into the un-captured regions across India.
Especially in the case of regional players, they will
emerge as strong contenders in their home turf to sell
their products in the neighboring States and Tier I
and II cities. However, there will still remain some
regions that will be left unexplored due to a weak
audience or logistics issues. Th erefore, companies
will do well if they can outsource their product
manufacturing to a local franchise and support them
in the marketing activities, which can help the brands
to be sold to neighboring markets. PGConsumers
looking for
healthy
alternatives
to classic fried
potato chips
are sampling
options that
include nachos,
dehydrated
vegetable chips,
roasted and
baked chips and
popcorn.In the pages to follow, we bring you the profiles of some cutting-edge brands
in the Snacks category and what they are doing to offer high value, branded
products that deliver convenient solutions to consumers.