The Representative

India's Youth News Tank

The Story of Snacks in India

3 min read
snacks in india

For Indians, food is a part of our culture. Apart from the spicy- flavor-rich main course meals, the country also has a wide variety of homemade snacks. However, with the preference for packaged goods increasing, instant and ready-to-eat snacks are being picked at high rates.

Overview of the Snacking Category:
● According to Euromonitor, the business of snacking will be worth Rs 35,000 crore in India by 2020.

● The industry is expected to grow with double-digit CAGR for the time frame of 2018 to 2024.

● The India Snacks Market will be more than INR 1 Billion by the end of 2024.

● Indian snacks market is highly fragmented and is divided between organized players and unorganized market.

● The unorganized market contributes to the majority of the sales and includes local, unbranded snacks that have distribution limited to a town or a city. This however, is expected to change during the forecast period of 2018-2024.

● The growth in the category is due to Lifestyle Changes, Rising Urbanization, Growing Middle-Class Population, Local Availability, and Availability of Snacks in Small Package Size, Low Price, and Company’s Strategies to focus on regional taste.

Players in the Indian Snacks Category:
● PepsiCo India is a leading player in the India snacks market, with brands like Lay’s, Kurkure, Uncle Chipps, and Doritos in its portfolio. PepsiCo India has the highest market share in the category.

● Parle is another top competitor, with brands like Parle’s Wafers, Parle Namkeen, Full Toss.

● Pratap Snacks, Balaji Wafers, DFM Foods (CRAX Corn Rings, Natkhat),
Bikanervala and Haldirams are also some of the most popular snacks companies in India, in the organized snacks market.

Haldiram’s:● In Bikaner, Rajasthan in 1937, Haldiram’s was a small snack shop owned by Gangabisanji Agarwal, known as Haldiram Agarwal. In 1982, the business began expanding and set up its first shop in Delhi. A decade later, the company started to export to the U.S.

● Globally, Haldiram’s products are now available in over 50 countries. In India, Haldiram’s also runs restaurants serving Indian street food specialties.

● Brands: Haldirams Chips (Classic Salted, Pudina Treat, Kettle Chips, Aloo
Masala, Papri Chaat) and Haldirams Namkeen (Khatta Meetha, Moong Dal,
Mixture, All in One, Aloo Bhujia, Badam)

Balaji Wafers:● In his earlier years, Chandubhai started as a gate-keeper at Astron Cinema in Rajkot. The 60-year-old founder and director of Balaji Wafers Private Limited started making potato wafers in 1982 with an investment of just Rs 10,000, at his own house. The company then went on to become a large brand that had a turnover of Rs 1,800 crore in 2017.

● Balaji Group is based out of Rajkot, Gujarat. Balaji Wafers installed Gujarat’s first fully automated potato chips plant and captured a 90% share of the potato chips market in Gujarat. Besides Gujarat, they continued to grow in the markets of Maharashtra and Rajasthan.

● Brands: Balaji Wafers (Simply Salted, Magic Masala, Pizzy Masala, Tomato
Masti), Balaji Namkeen (Mung Dal, Chana Dal, Aloo Sev, Khatta Mitha, Nibu
Chatka).

Prataap Snacks:● Founded in 2003 by brothers Amit Kumat and Apoorva Kumat along with their friend Arvind Mehta, Prataap Snacks is today an Rs 850-crore company with four factories across the country and 2,900 distributors. Indore-based Prataap Snacks has grown to become India’s sixth-largest packaged snack maker.

● The company’s annualized consolidated revenue increased to Rs 1,036.7 crore in 2017-18 from Rs 909.4 crore the previous year. It also propelled the company to No. 340 on Fortune India’s Next 500 from No. 437 in 2017.

● Brands: Chips like Rings, Chulbule, Fungroo, Scoops, and namkeen like Chana Masala, Peanuts, Classic Peanuts, Falhari Chivda, Chana Dal.

Snacking pattern during the lockdown:● Since the beginning of the lockdown, there has been a high demand for snacks due to more time spent at home. Snacks and condiments are very much in demand and needed in families especially with children or senior citizens. These snacks are offering satisfaction as well as a sense of contentment.

● The upcoming trends in the category are companies providing value packs (family packs) on discounted rates and an increase in the demand for healthy or organic snacks, as people are becoming more health-conscious.
Be it the Ayushmann Khurrana endorsed Balaji Wafers or Maganlal Chikki from Lonavala, snacks are here to stay and it would be interesting to see how unbranded, local snacks embrace e-commerce to sell their products this year.

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