Snacking a Trend to Chew On

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Snacking: A Trend to Chew On When guests drop in for tea or when we’re taking a trip; packing our child’s school tiffin or when we suddenly feel hungry at work – how easily we reach for a packet of wafers, namkeen or murukku. Snacking is certainly on the rise in India as disposable incomes grow and busy lifestyles create a need for readymade convenience. Furthermore, modern automatic packaging machines assure hygiene and freshness while smaller-sized packs provide mobility and affordability, and reduce wastage. As per an article in The Economic Times, Indian consumers seem to have re-discovered their taste for traditional snacks such as farsan, bhujia and namkeen - going by the impressive growth rate of local firms such as Balaji Wafers, Haldirams and Bikanervala at a time when their multinational rivals are struggling. 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. According to a recently released TechSci Research report, extruded snacks market in India is projected to grow at a CAGR of more than 11% during 2016-2021. Children and young population are the primary buyers of extruded snacks and they are also the target consumer segments for the major players operating in the market. Major players operating in this market include PepsiCo, Prataap Snacks, ITC, Balaji and Bikanerwala. In 2015, PepsiCo grabbed the lion’s share in the country’s extruded snacks market, and the company is expected to continue its dominance through 2021. In this scenario of product innovations and easy availability which fuels growing demand, the packaged snack market continues to offer exciting growth prospects for manufacturers. Indian consumers are increasingly inclined to well-packaged snacks which are associated with greater credibility, longer shelf life and better product quality. More snack companies are selling their products across the whole of India, and are even exporting them to countries abroad.


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