34 |^ Progressive Grocer^ |^ Ahead of What’s Next^ |^ July 2019
Category Watch Snacks
in packaged form. Also, with India being a price-
sensitive market, some regional manufacturers have
increased the volume/amount in their local fl avored
products, without changing the price point. As
regional manufacturers have become successful in
off ering local fl avored products from other regions- apart from the place of origin of the product – it
is creating a signifi cant challenge for leading market
players such as Pepsico in western snacks.
Market Size and Segmentation
According to Mintel research, the major product
segments within retail packaged snacks category
includes:
f Chips, which includes primarily potato chips;
f Snack Nuts, which includes packaged nuts
intended for immediate consumption;f Other Snacks, which includes potato-based
snacks, rice-based snacks, corn-based snacks,
popcorn, fruit snacks/jellies among others.
Other Snacks also covers a large variety of
branded and packaged traditional snacks,
including but not limited to mixture, chiwda
and banana chips.As per Mintel’s Global New Products Database
(GNPD), Other Snacks, which is the largest
segment, account for 70% by volume and 61% by
value of the retail snacks market in India. Chips
follow, accounting for 34% by value and 27% by
volume. Snack nuts accounted for 4% of volume
sales and 6% of value sales. But this segment is
seeing the highest volume of growth in terms of
new products, and is also a leader category with
regard to new launches in the market. One snack
category seeing a lot of growth is ready-to-eat
popcorn/caramel corn. Th at’s not surprising, since
many manufacturers are introducing new fl avors
and varieties.
As per Mintel report, during 2011-15, the
Indian retail snack food category grew at an
annual rate of 20.5% by value and 12.3% by
volume and the category is projected to grow
at an annual rate of 18.0% by value and 13.3%
by volume in the 2016-20 period. Th e report
fi nds that snacking is pretty much an established
trend for Indian consumers. About 75% of adults
aged 18-64 said they snacked at least once a
day. Among younger adults – those in the 18-34
age group – 77% said they snacked once a day.
Th is dropped slightly to 73% for adults aged
35-64 years. According to Mintel’s data, India’s
organized snack market was worth INR 197.8
billion in 2015 and it should only continue
to grow as India is one of the fastest growing
economies in the world.
According to Euromonitor International, savory
snacks – the aggregation of fruit snacks, chips/
crisps, extruded snacks, tortilla/corn chips, popcorn,
pretzels, nuts and other sweet and savoury snacks- in India has been outperforming the overall
packaged foods category. “Savory snacks recorded
a 19% year-on-year value growth, through 2013-
- On the other hand, the overall packaged foods
industry registered a growth of 18% year-on-year,
through the same period,” says Prashant Roy,
Senior Research Analyst – Food & Nutrition at
Euromonitor International.
“Even though savoury snacks is a mature category,
yet the prospects of the category looks extremely
promising in the future,” says Roy. He points
to some of the major growth drivers and the
consequent trends:The snacking
scenario has
changed with
an increased
number
of people
consuming
snacks daily and
making it a part
of their meal.Snack Food – India | Retail market size
VALUE IN LOCAL CURRENCY
Value Unit prices Value growth
Units bn INR INR per kg %
2007 43.4544 181.4
2008 50.056 187.1 15.2
2009 59.2664 195 18.4
2010 76.987 221.8 29.9
2011 93.641 238 21.6
2012 112.3692 262.4 20
2013 137.0904 298.5 22
2014 162.0131 305.9 18.2
2015 197.751 315.9 22.1
2016 236.6128 314.1 19.7
2017 284.5497 327 20.3
2018 333.9611 339.9 17.4
2019 390.8865 353.94 17
2020 459.3731 369.69 17.5
Sources: Company Information, Trade Interviews, Mintel.