The evolution of Indian snacking: Health consciousness meets traditional flavours

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)

According to the Mondelez report, 91 percent of Indians believe 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.”

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.