PUBLISHER: IMARC | PRODUCT CODE: 1754057
PUBLISHER: IMARC | PRODUCT CODE: 1754057
The India snacks market size reached INR 46,571.3 Crore in 2024. Looking forward, IMARC Group expects the market to reach INR 1,01,811.2 Crore by 2033, exhibiting a growth rate (CAGR) of 8.63% during 2025-2033. Increasing urbanization, along with rising disposable incomes and changing lifestyles, are driving the growth of the market. It is further supported by the growing young population and the influence of Western eating habits, which are boosting the demand for convenient ready-to-eat snack options across various demographics.
Rise in Health and Wellness Trends
The health and wellness trend in India snacks market is becoming increasingly prominent as consumer nowadays look for healthier eating options. The shift is evident in growing popularity of snacks that are natural, organic, vegan, low- calorie and gluten-free. These products cater to health-conscious consumers who are mindful of their dietary choices and prefer snacks that contribute to their well-being. According to an article published in the Times of India in 2023, 38% of the Indian population is strictly vegetarian. Snack manufacturers nowadays are responding to this trend by creating products that align with the customers health preferences thereby expanding India snacks market.
Increase in Retail Channels
The expansion of retail channels in India snacks market is notably influenced by the increase in online platforms mainly due to the COVID-19 pandemic. This trend is facilitated by the advancements of logistics and delivery networks across the country which allows for a broader reach and convenience. According to a report by Indian Brand Equity Foundation, India has gained 125 million online shoppers in the past three years with another 80 million expected by 2025. India's e-commerce market is expected to reach 111 billion USD by 2024 and 200 billion USD by 2026.
Innovation in Packaging
Innovations in packaging within India snacks market are mainly influenced by the rising consumer demands for convenience and sustainability. Pouch packaging has become especially popular and favored for its ease in use during on-the-go consumption and efficient storage capabilities. According to an article published by Invest India, India's food processing sector is expected to reach $535 Bn by 2025-26, with the food and beverage packaging industry projected to reach $86 Bn in 2029. Sustainable packaging, using biodegradable, recyclable, or compostable materials, is becoming increasingly popular. Eco-friendly materials include corn plastic, bamboo, wood and plant fibres, and mushroom-based packaging.
Chips accounts for the majority of the India snacks market share
The Indian snacks market is largely dominated by chips, owing to their immense popularity across all age groups. Chips come in a wide range of flavors and forms, catering to Indiaal tastes and preferences, which makes them a favorite among a vast consumer base. Manufacturers are continually innovating with new flavors and healthier options, such as baked and multigrain chips, to meet the growing demand. Furthermore, chips' dominance in the snacks sector is further reinforced by their easy availability, ranging from small retail shops to large supermarkets.
Pouch holds the largest share of the industry
In the India snacks market, pouch packaging dominates due to its convenience, affordability, and effectiveness in preserving freshness. Pouches are favored for their lightweight nature and ease of storage, making them ideal for on-the-go consumption. They also offer excellent marketing surfaces for attractive designs and nutritional information, enhancing shelf appeal. The ability to seal in flavors and extend shelf life without the need for refrigeration further adds to their popularity. This packaging type's versatility allows it to cater to a wide range of snack products, securing its large market share.
Less than 50 gm represents the leading market segment
The India snacks market is currently being dominated by the less than 50 grams packaging segment. This is mainly due to the fact that consumers prefer smaller portions, as it allows them to try out new flavors without committing to larger quantities. This packaging size is highly appealing to individuals who are looking for light snacks or are managing their calorie intake. Additionally, it caters well to a transient customer base, such as commuters and schoolchildren who prefer quick and portable eating options. The affordability of these smaller packs encourages impulse purchases, which further boosts their popularity in the market.
General Trade exhibits a clear dominance in the market
General trade, comprising small retailers, local shops, and kiosks, exhibits clear dominance in the India snacks market. This sector's vast network and deep penetration into both urban and rural areas make it the most accessible shopping channel for the majority of consumers. These outlets are preferred for their convenience and the ability to offer localized, personal customer service. Moreover, general trade often provides flexible pricing and credit options, which are crucial in price-sensitive markets, ensuring its continued prevalence and dominance in the snacks industry.
Maharashtra leads the market, accounting for the largest India snacks market share
The report has also provided a comprehensive analysis of all the major markets in the region, which include Maharashtra, Uttar Pradesh, Delhi, Gujarat, Karnataka, Andhra Pradesh, Telangana, Goa, and others. According to the report, Maharashtra was the largest market for snacks in India.
The India snacks market is led by Maharashtra, owing to its large urban population and significant economic status. The cosmopolitan cities of Mumbai and Pune in the state have a fast-paced lifestyle and a diverse population that loves to experiment with various flavors and products, resulting in a high demand for snack foods. Maharashtra's strong retail infrastructure and high consumer spending power make it an important India for snack manufacturers. Often, new products are launched here to assess market trends and consumer preferences.