Opinion | Move Over, Potato Chips. Indian Snacks Are Taking Over The Market

Indian brands seem to have captured the snack market in the country. According to NielsenIQ, at Rs 50,800 crore, desi munchies such as bhujia, dal, chivda, chanachur and fried nuts accounted for half the sales of salty snacks during the financial year 2023-24. It reflects the growing demand for hygienically packaged, branded ethnic snacks.

Both overseas and domestic companies have seen a push in demand in the interior parts of the country. From sev and mixture to chivda and banana chips, munchies are sold even at the smallest of dhabas, tea stalls and paan shops across India. All these traditionally salty snacks can be broadly categorised as namkeen.  Bikaneri bhujia, one of the oldest namkeens made reportedly in 1877, can be traced to Bikaner and is one of the most popular snacks in India today. But Haldiram's leads the market, with presence in almost all snacking categories, including traditional namkeens. In 2023-24, its snacks sales hit Rs 12,161 crore, up 18% year-on-year. In comparison, PepsiCo's snack sales grew 14% to Rs 7,336 crore, while Gujarat-based Balaji Wafers saw sales of Rs 5,931 crore, an increase of 12% year-on-year.

Why People Are Turning To Indian Snacks

Earlier, the Indian market was dominated by Western snacks like potato chips and finger sticks sold largely by multinational companies like Pepsi Frito Lays and ITC Foods. A branded desi 'farsan' still does not command the same price as a branded potato wafers sold by an MNC. However, with little innovation and makeover, traditional snacks have come a long way.

That's only understandable given India's love for munchies. Khushi Saraf, a Gwalia Sweets franchise owner in Ahmedabad, says, "Where western snacking companies try to standardise the taste, desi snacking companies try to personalise the flavours for locals, which remind them of their culture, their hometown, festivals and their roots." She adds, "For example, in Gujarat, people would opt for fafda, khakhra and chorafali for breakfast after Dussehra and Uttarayan and not chips. Even when Gujaratis go on foreign trips, they take theplas with them."

Ethnic/Desi Flavours 

Various factors such as a change in lifestyles, urbanisation, growing middle-class population, accessibility and availability of snacks in small packages and low prices have resulted in the growth of the traditional snacks market, which earlier was limited mostly to the unorganised sector. Companies too have initiated strategies to promote regional and traditional tastes.  "The fusion of traditional Indian flavours and spices with globally palatable snacks like foxnuts, crackers, puffs, and cookies allow us to resonate with the global food palette while catering to the Indian market as well," says Vaishnavi Rao, co-founder, The Snack Company.  "We also stand out in the usage of functional ingredients to create snacks that not only taste good but also offer health benefits - something that sets us apart from many Western snack brands," she adds.

Currently, close to 40% of the snacks market is controlled by 3,000-odd smaller or regional players, who provide more value to consumers in terms of extra quantity and are also quick in launching products as per the taste and demand of the consumers. In terms of volume, traditional snacks make up nearly 56% of the overall market. In fact, for many years now, ethnic snacks have comprised the bigger segment by volume as they offer larger quantities for similar prices when compared to Western snacks sold by MNCs. 

Healthy Munchies

Sellers also say consumers have in a sense correlated healthy food with something inherently Indian and are starting to favour munchies that use ingredients common in Indian kitchens. Snacks made with lentils and pulses are seen as low-calorie, healthy alternatives to traditional munchies. 

"Today's consumers are increasingly health-aware, carefully examining ingredient compositions and nutritional information. There is a shift towards healthier options that still deliver on taste. Spicy trail mixes, cookies, roasted makhanas and flavoured dry fruits are gaining popularity. There's also a growing interest in protein-rich snacks and those made with alternative grains like ragi or jowar," says Rao. 

Though most Indians can't imagine life without namkeen, there must be caution too. One must remember that much like deep-fried junk foods and Western munchies, traditional namkeen is also harmful to health. Moderation is key.

(Bharti Mishra Nath is Contributing Editor, NDTV)

Disclaimer: These are the personal opinions of the author