“This (healthy snacking) segment is growing 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,” Sonika Gupta, executive director of customer success at NIQ India said.
India’s snack and confectionery industry is ranking second in terms of market size in the APAC region. The sector is driven by the health benefits it brings along, nutritional richness, and natural ingredients in it like dried fruits and antioxidants.
The researcher said that emerging brands in the snacking market that are offering smaller convenient pack sizes are growing 60% more than the traditional small packs.
Gupta added that one in five snacks now have a health connotation.
Even though the smart snacking market has been growing at 16% in value, NIQ noted that there is a slowdown in new innovations and product launches.“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,” Vidya Sen, customer success lead at NIQ India said. “Manufacturers should align their strategies with regional and demographic nuances.”The south of India is prioritizing healthy ingredients in their snacking, whereas the west of India emphasizes nutrient-dense snacks. The taste in these snacks is the preference for north and east India. The south and east India cumulatively comprises 60% of the smart snacking market.
NIQ also added that for brands to succeed in the Indian market, they must highlight health benefits, maintain flavour, emphasize on nutrition additions rather than omissions, prioritize convenience, and customize their offerings based on regional and age preferences.
The research agency also pointed out that the trend of being health-conscious also extends towards consumer durables. Hot air fryers reported over 100% growth this year till July 2024. Fitness wearables grew by 59% in volume during the same period.
Their study also found that 84% of the surveyed urban consumers exercise regularly to stay fit, and 48% also use a fitness or exercise app for the same
