Crunching its way to success with the indian snacks industry

Crunching Its Way to Success with the Indian Snacks Industry

Snacking is on the rise. And how! Increasing disposable incomes, a need for convenience from fast-paced lifestyles and a cultural tradition of snacking between meals have fuelled explosive growth in this sector. Branded snacks are also fast penetrating the semi-urban and rural space which has been traditionally dominated by unbranded or homemade products. As a result, the market has witnessed a high growth trajectory.

At present, the branded salty snacks market is estimated to be worth INR 10,000 crore (USD 1.68 billion), and is projected to grow at a CAGR of 1518% over the next few years.

PepsiCo leads the western snacks (potato chips & extruded snacks like kurkure) market, and, together with other prominent players in this segment (ITC, Balaji, Parle Products, Prakash Snacks and Haldiram’s), holds a share in excess of 70% of the market. In the traditional snacks space, Haldiram’s and the regional player, Balaji Namkeen, together account for over 50%.

Consumers’ changing dietary habits and willingness to try new things are pushing these numbers even higher.

In addition, children are having more say in buying decisions. What’s more, branded snacks are now easily available across both modern and traditional retail formats, from supermarkets and mom-and-pop stores to small tea stalls, office canteens, paanwalas, etc.

Most brands are available in multiple pack sizes including small ones at attractive price points (INR 5, 10, etc.) leading to higher affordability and increased category presence and more product trials.

There was a time when branded salty snacks were mostly potato chips. However, players now offer new products like extruded snacks besides expanding their traditional snacks offerings, e.g. Murukku, Chakali, Mathri, Gathiya, Samosas, Daal, Farsan Mixtures, etc. which has seen several consumers upgrade from the unbranded market to branded products. Also, given the increasing concerns surrounding ‘unhealthy’ snacking, players have positioned brands and products around ‘health’, e.g. baked, roasted, multigrain, low fat, etc. to reach out to the health-conscious segments.

In the branded snacks market, packaging plays a crucial role. Indian consumers are increasingly inclined to hygiene and quality; well-packaged snacks are associated with greater credibility, longer shelf life and better product quality. Moreover, with the rapid growth of the packaged snack market in India, the popularity of ethnic snacks from various regions in the country has extended to non-native consumers as well. More snack companies are selling their products across the whole of India, and are even exporting them to countries abroad. Hence they require packaging that can protect the product quality and endure the toughest stages of the distribution chain, including shipments and other handling options. Moreover, since snacks are largely impulse purchases; the use of packaging design as an effective point-of-sale strategy has become the obvious choice of manufacturers’ to influence purchase decisions.

Nichrome’s Vertical Form Fill Seal (VFFS) snack & namkeen packaging machines help manufacturers address the challenges of snack packaging. The inherent fragility and odd shapes of snack foods have to be taken into account while ensuring minimised costs and a highly efficient packaging process.

Nichrome’s VFFS machines are also suited for dry fruit pouch packaging, biscuit packaging and other products like Wrapped Candies, Macaroni, Biscuits, Pasta, Seeds, Breakfast Cereals, etc.

Nichrome’s Snackpack and Namkeenpack automatic snack packaging machines deliver speeds of up to 150 packs per minute. The gas-filled pouches provide protection for brittle snack products such as potato chips, while the vertical concept of the packaging solution helps to speed up the process. They allow easy format changes to produce CSPP and gusseted pouches of different sizes besides perforated chains of pouches. Namkeenpack also offers a variety of seal patterns such as Broad Seal with D Cut, Euro Slot, V-notch and V Serrated Edge. This gives snack manufacturers production flexibility and the convenience of packaging snacks in various styles and sizes according to marketing strategies, regional preferences, serving sizes and dietary needs − with just one machine.

Apart from offering versatility and efficiency, Nichrome’s Snackpack and Namkeenpack machines have also been designed to ease operational and maintenance challenges. Operations are simplified and to facilitate maintenance, they are also equipped with servo-technology that helps to reduce and eliminate technical errors.

Based in Pune, Nichrome is a leading supplier of packaging technology for the Indian snack industry, with a client list that includes Nestle, Haldirams, Chitale Bandhu and Bambino.