India’s crunch for health: The rise of healthy snacking

Indian consumers are increasingly opting for healthier snacks, fueling rapid growth in the segment. Emerging brands offering smaller, health-focused packs are thriving, especially in metros and smaller towns.

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India’s snacking culture is increasingly being defined by health-conscious choices that emphasize wellness alongside flavor. A stroll through any supermarket’s snack aisle reveals a wide array of options—fried, baked, grilled, air-fried, or roasted. These snacks cover categories like vegetable sticks, nuts, seeds, whole grains, multi-grains and rice crackers, and offer wide flavour options to choose from.

A “root-to-fruit” approach is also gaining traction, showcasing snacks made from brinjal, banana, okra, jackfruit, potatoes, and traditional favorites like chana dal, roasted peanuts, and moong dal. This sector’s growth is driven by a rising population, higher disposable income levels, and changing consumer preferences, making India the second-fastest-growing snacking market in the Asia-Pacific region, where healthier choices are at the forefront.

According to a report by market research firm IMARC Group, the Indian snacks market was valued at Rs 42,694.9 crore in 2023 and is projected to reach Rs 95,521.8 crore by 2032, with a CAGR of 9.08%.

Health awareness among Indian consumers is unmistakable, with a NielsenIQ report revealing that 63% actively seek nutritious snack options, and about half check labels for nutritional value. This shift in awareness has spurred “smart snacking to grow 1.2 times faster than traditional snacks in terms of value, presenting opportunities for brands to innovate in health-focused products and leverage the consumption trend,” notes Sonika Gupta, executive director of customer success at NIQ India.

Brands offering convenient single-serve packs are experiencing a 60% surge in demand, resonating strongly with consumers’ busy, on-the-go lifestyles. Health-oriented emerging brands, particularly those focusing on smaller, easy-to-carry packs, are thriving across both metropolitan and smaller towns.

Geographically, this health-conscious snacking trend is most pronounced in metropolitan areas, with southern and eastern India contributing 60% of the demand. In the south, consumers prioritize healthy ingredients, while the west emphasizes nutrient-rich snacks, and the north and east show a preference for flavorful options. According to Vidya Sen, NIQ India’s customer success lead, “Metros contribute the highest to smart snacking. Growth in the smart snacking segment is also evident in rural areas and lower town classes, matching urban growth rates.”

As the smart snacking market grows at 16% in value, there is, however, a slight slowdown in new product innovations. To address this, NIQ advises that the manufacturers should align their strategies with regional and demographic nuances and focus on delivering health benefits, flavor, and nutrition additions rather than omissions.

The trend toward health-conscious choices also extends to consumer durables, with air fryers experiencing over 100% growth and fitness wearables rising by 59% in volume by mid-2024. The NielsenIQ study further noted that 84% of surveyed urban consumers exercise regularly to stay fit, with 48% also using fitness apps.