MUMBAI: Snacks are some small nibbles you munch on just to satisfy your cravings sometimes. But it’s no surprise that consumption has surged in a big way - in fact the growth has been unprecedented - in 2024. The increasing population, growing incomes of people, and the shifting priorities of consumers are increasing the demand for snacks.
According to a report by global market research group, Imarc the Indian snacks market was valued at ?42,694.9 crore in 2023. It is expected to swell dramatically by more than doubling by 2032, reaching ?95,521.8 crore.
This impressive growth is being driven by consumers’ love for convenience, the increasing role of e-commerce, and improved food safety standards.
Festivals Lead to Increased Demand
The festive season brings joy not only to consumers but also to the FMCG brands. During this time of the year, gifting, celebration, and indulgence in snacks and sweets are synonymous.
Many brands launched new products this year and created special hampers to meet the festive demand with variety and innovation
According to logistics intelligence platform for online retailers Clickpost’s report, online sales in this year’s festival season surged by as much as 49 per cent through tier-2 and tier-3 cities. And for brands, it's probably the perfect opportunity in recent times to garner new customers, boost sales, and even better their market reach in those relatively smaller towns and cities.
Rural Growth and online expansion
Rural areas are now an important part of the growth of FMCG brands. NielsenIQ data reports that rural markets expanded by six per cent in the Q3 of 2024, a rate greater than that of urban areas, which grew at 2.8 per cent. Small producers, however, also appeared to recover, playing a big role in the overall growth of the industry.
In the meantime, the e-commerce expansion has shaken the snack and sweets industry. In the past three years, India has acquired 125 million online buyers and expects to add 80 million more by end-2025. This trend is increasing the accessibility of snacks and sweets throughout the country by improving convenience and availability more than ever.
Consumer Trends Shaping the Industry
Consumer preference is one of the major drivers of innovation in the snacks and sweets segment. Younger generations (Genz, Gen Alpha), along with the influence of western eating patterns, are raising the demand for quick, ready-to-eat options. Sustainability too is gaining priority. On the other hand, brands are adopting eco-friendly packaging using recyclable materials, compostable, and biodegradable materials as well. This is being done to protect the environment as well as to satisfy the so-called woke younger segments sensitivity to sustainability.
Looking Ahead
The Indian FMCG industry, especially the snacks and sweets category, has shown resilience in a challenging economic environment. From festive sales and rural growth to online expansion and sustainable packaging, the sector continues to evolve to meet consumer demands. Brands are not just satisfying cravings but also creating delightful experiences, making snacks and sweets a key part of India’s dynamic food landscape.
(The views in this article are the author's and Indiantelevision.com needn't subscribe to them)
