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Sial Shenzhen 2024|The Evolution of Indian Snacking: Health Consciousness Meets Traditional Flavours

2024.07.03

According to the Sial Shenzhen 2024, Haldiram's Foods, a legacy brand with roots in the 1930s, was recently eyeing acquisitions in the health-snacks segment to fuel expansion, as the snacking industry has been growing rapidly. According to Euromonitor data, the snacks market in India is expected to grow to Rs 1,632.9 billion in 2023.

 

“The Indian snacks market has experienced significant expansion in recent years. The market has become a vibrant landscape of innovative snack offerings, fuelled by a population that values both traditional and international flavours.” said Vikram Agarwal, Managing Director at Cornitos.

 

Popularity of healthy snacks

 

In India, snacking is an integral part of the daily routine, with 76 percent of individuals snacking at least twice daily, according to the Mondelez India 4th Annual State of Snacking report. Morning snacking is a popular trend, with 42 percent of Indians enjoying a breakfast snack like a protein bar or crackers, significantly higher than the global average of 24 percent. The primary reason behind this preference is convenience, as people believe it's simpler to have a quick snack in the morning than a complete meal, the report stated.

Analysts said that people are increasingly buying snacks for on-the-go consumption, with smaller pack sizes promoting spur-of-the-moment purchases. “While health considerations play a role in buying decisions, taste often takes precedence. Thus, even snacks like chips, which aren't typically seen as healthy, maintain strong sales,” said Amit Purohit, research analyst at Elara Capital.

 

However, there's a growing preference for foods with added health benefits, like functional foods (includes a variety of foods from each food group, prepared in a healthy way), he noted. This trend is evident in business moves like Marico's acquisition of Plix which offers products with health benefits like Plix Lean Fudge bar and Plix peanut butter.

 

“We recognized a rising demand for healthier snacking options in the packaged snacks segment,” said a Marico spokesperson. The company intends to expand in this category with products such as Saffola Soya Bhurji and Saffola Munchiez, which is a ready-to-eat snack made from ragi and makhana.

 

The Indian snacks market has experienced significant expansion in recent years, driven by the diverse and evolving tastes of consumers. (Source: Euromonitor Data)

 

Sial Shenzhen 2024 points out that each individual has unique nutritional requirements, and 85 percent expressed a preference for snacks tailored to their specific health requirements, the report noted.

 

Snack brand Cornitos focuses on offering a healthier snack option by using ingredients such as corn oil, beetroot, quinoa, and spinach, and also offers gluten-free alternatives. “This addresses the increasing demand for nutritious choices in the market,” said Agarwal.

 

Responding to market trends and the growing demand for healthy snacks, the company has also launched innovative products like dry fruits Crusties (a baked snack), Veggie Nachos (good for a healthy and active lifestyle), and Seeds (variant for nuts and can help reduce blood sugar, cholesterol and blood pressure).

 

Healthy outlook

 

Speaking about the outlook of the snacks market, Manoj Verma, COO, Bikaji Foods International said the outlook for this category shows it has been growing at a double-digit rate, and this trend is expected to persist. Given the emerging younger generation and the notable shift in habits, consumer packaged goods are here to stay, he said.

 

The transition towards healthy snacking might take a while, but awareness is growing. Said Verma.  ``We've introduced a line of products that cater to the healthy snacking trend, though currently, it's a niche segment with minimal contribution. I anticipate that in the next four to five years, the share of this segment might increase.”

 

Sial Shenzhen 2024 reveals that with consumers becoming more health conscious the organized snack sector is expected to do well, said Purohit. “But market preferences vary based on location. Urban consumers lean towards branded products, while regional areas have many local brands (DFM Foods, Balaji Wafers, Prataap Snacks, Maiyas, Laxmi Snacks) catering to value-conscious customers, where price becomes a significant factor in their choice.” he noted.

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