snack industry

Study suggests 15% growth in extruded snack industry in India by 2024

According to a recent report by TechSci Research, Extruded snack industry in India is expected
to grow at a rate of more than 15% CAGR between 2019 and 2024 and is likely to reach 15,000 Crore INR.

Did you ever binge-watched a series or a movie with some chips on the side? Had something crunchy and spicy while working from home? Yes, Most of us do. Everybody enjoys a snack once in a while. Snack industry is a booming business anywhere in the world. Especially in countries like India with major young population and urbanization.

Top Indian Food Companies in extruded snacks sector
Extruded snacks are snacks produced from cereal flour and starches. The raw materials are forced into a mould with different shapes and sizes. Extruded snacks are mainly high in calories and low on protein. PepsiCo, ITC, Bikanervala, Haldirams and Namkeen are some of the major companies producing extruded snacks in India. Research and Markets mentioned in an article that “Namkeen has the highest share market in India’s snack market while PepsiCo is the leading company in the snack’s market.” Snack industry will grow to 15,000 Cr by 2024.

Snacks

Snack industry in India had a steady growth for the last few decades. Earlier in 2013, the market for snack industry was around 8000 Crore INR. Young population are the target segment for snack industry. With two-thirds of population in India being young, the snack industry is impacted positively.
Growth in the market can be accredited to increasing per capita income and urbanization of the country. India has emerged as the fastest growing economy in the world. The pandemic, in a way, had a huge effect on the market. With the option of working from home, people developed a habit of munching while working. People stored lot of food items at home with most of it being snacks.

The pandemic changed the perspective of people on buying packaged food. People were willing to buy items made with minimal human handling.
With the rise in demand, the organizations are improving in all aspects like manufacturing, packing, distribution and marketing. In terms of manufacturing and packing, companies are attracting consumers with affordable and smaller packs of snacks. Coming to distribution, grocery markets and supermarkets hold the majority share.
However, barriers like low availability of raw materials and seasonal crops make it difficult for companies in production. Karan Chechi, Research director at TechSci research says “Busy lifestyle, rising per capita income, traditional habit of Indians to have snacks and increasing middle class population make the country a lucrative market for extruded snack manufacturers.”

With large number of companies entering snack industry, their presence in the market depends on consumer satisfaction. Companies need to blend and balance the taste of their products according to the demand. With young population in the country and developing lifestyle, the industry is likely to grow leaps and bounds in the future.

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