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India Extruded Snacks and Chips Market Outlook, 2027-28

India Extruded Snacks and Chips Market Outlook, 2027-28

Bonafide Research 10-10-2022 114 Pages Figures : 20 Tables : 51
Region : Asia-Pacific Category : Food & Beverages Food

1. Balaji Wafers Private Limited

2. Bikaji Foods International Limited

3. Bikanervala Foods Private Limited

4. DFM Foods Limited

5. Haldiram Foods International Private Limited

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The Indian snacks industry is the most promising and booming segment of the FMCG category. Consumers always prefer healthier and more flavourful options in the food market. There is a rise in demand for snacks in India; it is driving companies to grow and operate in this segment lucratively. India is the second most populated country in the world. 65% of the total population is below the age of 30 years. The young population is expected to be the consumers of these products. Also, rising per capita income is another major factor which could drive growth in this industry. The extruded snacks market is driven by the consumption habits of consumers, marketing strategies of companies, pricing strategies, and developing economies of the world.

According to the report, "India Extruded Snacks Market Outlook, 2027-28" published by Bonafide Research, the market is anticipated to grow at more than 9% CAGR for 2022-2028. Packing snacks such as instant and ready-to-cook snacking food items act as the primary growth drivers for the snack industry in India. The consumption of packaged snacks is growing in India due to hygienic factors, easy availability, numerous choices, and a rise in its citizens' personal disposable income. Major players operating in the Indian extruded snacks market include PepsiCo, Prataap Snacks, ITC, Balaji, and Bikanerwala.

In India, the millennial and Gen-Z population are considered a big market by FMCG companies for their snacks segment. Since the Millennial and Gen-Z populations are more inclined towards junk food, however, this trend is also changing slowly with the introduction of organic nutrient snacks in the Indian market. These snacks are considered a bit healthier compared to regular snacks because of qualities like low calories and constituting less oil; thus, the huge Indian masses prefer them. Products such as Extruded Snacks, Chips, and Namkeen are popular among different consumer bases, age groups, and monthly incomes. India has different types of traditions, culture, and food; that’s why snacks taste different from region to region in India. For example, in western India, in states like Gujarat and Maharashtra, snacks like Fafda, khakhra, Dhokla, and Bhelpuri are popular. Similarly, banana chips are loved in Southern India. In the middle and northern India, potato chips are popular.

The Indian Snacks Market is dominated by brands such as Pratap Snacks, Balaji Wafers, DFM Foods, Bikanervala, Haldirams, and PepsiCo.Further, they are continuously capitalising on the opportunity through their product offerings, bringing the goodness of healthy food items to Indian consumers in different formats suited to the lifestyle of Indians as per their choice. Moreover, in India, many unorganised players working in the markets play a major role in the snacks market's growth. The large consumption of extruded snacks in round-the-clock meals by consumers is a key factor boosting the market growth. Moreover, they are widely consumed in parties, small or large gatherings, entertainment centers, theatres, and various other places. Extruded snacks are also largely consumed by the customers during their free time, travel, or even when they are busy but hungry. These consumer trends are anticipated to boost the demand for extruded snacks over the forecast period.

Over the past few years, consumers have become more cautious about their snacking habits and have increasingly preferred healthy extruded snacks. These healthy products help in weight management and improvement of metabolism by delivering essential nutrients and vitamins required by the body, thus expanding the scope of these extruded products in the forthcoming years. Major manufacturers are pursuing a variety of strategies, including new product launches, mergers and acquisitions, and distribution channel expansion, in order to capture a large market share and expand their customer base globally. For instance, in May 2019, PepsiCo, Inc. introduced "papadam", a South Indian extruded snack in its product portfolio. The company aims to target customers in South India. These new product launches increase product visibility, thus fuelling industry growth over the forecast period.

Along with this, the changing dietary patterns and shifting lifestyle preferences of individuals are creating a positive outlook for the market. Moreover, numerous leading food companies in India are launching extruded snacks in authentic Indian flavours to cater to the preference of the masses, which is providing a boost to the market growth across the country. Furthermore, they are also investing in innovative packaging solutions and creating competitive marketing and pricing strategies in an attempt to strengthen their market position across India.

Extruded snacks are obtained in different shapes as they are pushed through precision cuts or moulds. Just like all the other snacks available on the market, the extruded snacks could also be enhanced in order to cater to the consumers that are health-conscious. Due to an increasing market demand for exotic flavours, manufacturers are attempting to use premium ingredients in order to provide hi-res in already existing products to meet consumer demand. As there is an increase in the disposable income of the people belonging to developed as well as developing economies, the market is expected to grow during the forecast period. The snacks are sold on a large scale in hypermarkets and supermarkets in a wide range of varieties. The demand for extruded snacks is also growing due to impulse buying. This market is expected to see good growth in the Asia-Pacific region as there is a growth in the urban population and the lifestyle of people has become hectic due to dual income households.

The ever-increasing number of working professionals, rising urbanisation, lifestyle changes, local availability of snacks in small packages, and affordability, along with the growing popularity of convenience foods and an increasing drive for hygiene, greater taste, and consistency, are driving the market for Indian snacks. Further, factors such as increasing disposable income and a rising population affect retail market dynamics significantly, while the industrial and catering channels are driven by the growing demand for snack food items from industrial food services. PepsiCo India, which extended its portfolio with the launch of, is the market leader in salty snacks, which is also the fastest growing category in overall snacks. ITC, on the other hand, has utilised its in-house culinary expertise of ITC hotels’ chefs to understand the needs of variety-seeking consumers in different geographies. ITC has a widespread distribution network that plays a critical role in ensuring product availability across the length and breadth of the country. Brands are launching dosa mixes, healthy juices, smoothies, etc., in packaging that is known to increase shelf life.

Prataap Snacks is a leading Indian snack food company. It offers multiple variants of products across the categories of potato chips, extruded snacks, and namkeen under the popular and vibrant Yellow Diamond brand. It has recently launched a range of sweet snacks under the distinctive Rich Feast brand. Its products are present across 27 states in India. The government of India has undertaken several initiatives to support the agri and food sectors in India. For example, it granted priority sector status to the food processing industry under the new manufacturing policy in 2011. Furthermore, loans to cold chains and food and agro-based processing units have been designated as priority sector lending, and 100% FDI is permitted in the food processing sector.

Some of the homegrown healthy snacking startups in India includes True elements, Happilo, TagZ Foods, EAT Anytime, Snack-A-Doodle, Snack Amor. On the other hand, an Indian company named Magnum Foods and Snacks Pvt Ltd is revolutionizing the snacks market with its millet-based snack brand ‘MunchFit’. According to the founders of MunchFit, their snacks are healthy, crunchy, tasty, and gluten-free. Further, food and beverage Company PepsiCo India has launched its premium potato chips brand lay’s Gourmet in India to tap into the growing market for premium snacks in the country. The portfolio expansion is said to be in line with the brand (Lay’s) strategy to provide a spectrum of innovative and delicious snack options to consumers.

COVID-19 Impacts:
The COVID-19 pandemic has adversely affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The food and beverage industry experienced disruptions in the supply chains, manufacturing, delivery schedules, and retail sales in the initial phases of the pandemic. Furthermore, various companies announced possible delays in product deliveries and a slump in future sales of their products in 2020. In addition, the restrictions imposed by various countries on international travel compelled enterprises to temporarily suspend their collaboration and partnership plans. All these factors hampered the food and beverage industry's growth.

The disruption of supply chains has greatly affected the market during the COVID-19 pandemic. At the beginning of the pandemic, there was a growth in the market as people began purchasing more and more products out of panic. There was a maximum purchase of snacks through various convenience stores and retail outlets. As the lockdowns proceeded, the demand for these food products was dropping. There was a growing concern for safety amongst the people. Health-conscious individuals were seeking options that would boost their immunity. The market for convenient food options has gone down during this period.

Major Companies Brands
Major brands that operate into Indian Namkeen market are PepsiCo, Haldiram, Bikaji, Bikanervala, DFM Foods, Laxmi Snacks, Balaji Wafers, prataap snacks etc.

Considered for the Report:
Geography: India
Base Year: FY 2021-22
Estimated Year: FY 2022-23
Forecast Year: FY 2027-28

Objective of the study:
• To analyze and forecast the India Extruded snacks market size, in terms of value and volume.
• To analyze and forecast the India Chips market size, in terms of volume.
• To define, classify and forecast Extruded Snacks market on the basis of types like Multigrain Extruded Snacks, Potato Extruded snacks, Rice Extruded Snacks, Corn Extruded Snacks, and others Extruded Snacks etc.
• To define, classify and forecast Chips market on the basis of types like Potato Chips, Banana Chips, Tortilla Chips, multigrain Chips and others etc.
• To strategically profile leading players, which are operating in the Extruded Snacks and Chips industry of Indian Snacks Market.

Approach for the Report:
Bonafide Research performed primary as well as secondary research for this study. Initially, a list of manufacturers and suppliers operating in the extruded snacks and chips market of India were sourced through secondary sources. With the identified companies and consumers, primary research was carried out which included conducting online surveys, competitor analysis and exhaustive personal interviews - both face to face as well as telephonic basis, to extract maximum information from participants like industry executives/ distributors or consumers. Primary research gave us an idea of company revenues, export, pricing, geographical presence, channel partner model, USP etc. and also helped us to identify various small players who otherwise have less presence on the web.

Bonafide Research seeks secondary data from third-party sources such as published articles, company websites, magazine articles, associations, trade journals, annual reports, government official websites and other paid database sources. In addition, data is also mined from a host of reports in our repository, as well as a number of paid databases of Indian government. Using both primary and secondary information, Bonafide Research calculated the market size through a bottom-up approach, where manufacturers’ value sales data for different types of extruded Snacks and Chips were recorded and subsequently forecasted for the future years.

Scope of the Report:
“India Extruded Snacks and Chips Market outlook, 2027-28” discusses the following aspects of Namkeen market in India:
• Indian Snacks Market Outlook by Value by Volume & Forecast
• Indian Organised and Unorganised Market Outlook by Value by Volume & Forecast
• Indian Extruded Snacks and Chips Market Size by Value, Volume & Forecast
• 5 types of Extruded Snacks and Chips Category market Size by value, by volume, and forecast
• India Extruded snacks and Chips market Company share by Value.

Intended Audience:
This report can be useful to Industry consultants, manufacturers, suppliers, associations & organizations related to Extruded Snacks and Chips industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.



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