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Traditional snacks dominate volumes, extruded fastest-growing
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Saturday, 28 March, 2026, 14 : 00 PM [IST]
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Dr Venkatesh Ganapathy
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India’s snacks industry, including healthy snacking, is undergoing rapid growth and transformation, evolving from a side category to a daily-consumption business. Driven by urbanisation, changing lifestyles, rising disposable incomes, and convenience, snacks are now consumed at multiple points during the day—between meals, while travelling, during work breaks, and as evening refreshments—transforming them into high-frequency purchases. By 2026, the market is valued at ?55,000–60,000 crore, spanning traditional namkeens, chips, extruded snacks, bakery items, and emerging health-focused products. The organised sector accounts for roughly 55%, while thousands of unorganised manufacturers continue to cater to regional tastes in smaller cities and rural areas.
Market Size, Growth, and Projections
The Indian snacks market generated US$11.08 billion in 2020 and is projected to reach US$23.36 billion by 2026, growing at a CAGR of 13.24%. The broader snacks market, including traditional and packaged foods, is expected to double from Rs 46,000 crore in 2024 to over Rs 1,01,800 crore by 2033, with a CAGR of 8–9%. Within healthy snacks, revenue was US$4,419.4 million in 2025 and is projected to reach US$8,183.3 million by 2033, reflecting a CAGR of 8.1%. Among product segments, fruit, nuts, and seeds contributed the largest revenue in 2025 and are expected to register the fastest growth. The India namkeen market alone is projected to grow by US$4.89 billion from 2025 to 2030 at a CAGR of 10.2%, driven by retail penetration in Tier-II and Tier-III cities.
Key Growth Drivers
Rising snacking frequency, urban lifestyles favouring ready-to-eat foods, increasing health consciousness, and strong branding and distribution networks by FMCG leaders are major growth drivers. Consumers seek snacks that combine taste, nutrition, and transparency, leading to innovations in baked, roasted, multigrain, and millet-based products. Chips remain the largest organised category, traditional snacks dominate volumes, extruded snacks are the fastest-growing segment, and bakery and functional snacks steadily expand. Regional flavours, fusion products, and convenient small pack sizes further stimulate demand. Health, convenience, and sustainability are emerging priorities, with clean-label, trans-fat-free, and premium options gaining traction.
Market Dynamics and Competition
The market is intensely competitive. Large FMCG companies benefit from quality control, marketing budgets, and wide distribution. Unorganised players compete on price and regional taste, especially in smaller towns. Challenges include raw material price volatility, tight margins, regulatory scrutiny on fat, salt, and sugar, short product lifecycles, and fragmented unorganised sectors. Supply chain optimisation, flavour indigenisation, and efficient distribution are critical for maintaining quality and profitability, particularly in urban and semi-urban markets.
Industry Innovation and Global Outlook
Experts highlighted the industry’s “scientific reinvention,” focusing on ingredient standardisation, hygienic plant design, thermal processing, and advanced material handling to ensure consistent quality at scale. Consumers are increasingly seeking snacks that deliver taste, nutrition, and transparency. Strategic packaging, modern production processes, and data-driven innovation are enabling traditional foods to enter global FMCG markets while maintaining authenticity. Globally, India accounted for 4.1% of the healthy snacks market in 2025. While the U.S. and China dominate revenue, India is the fastest-growing regional market in Asia Pacific, positioning it as a potential global leader in ready-to-eat snacks by 2030.
Structural Shifts and Trends
The industry is moving from loose to packaged snacks, expanding small affordable pack sizes, and integrating healthier baked and roasted products. Online and quick-commerce platforms are growing rapidly, supporting faster delivery and e-commerce reach. Consumers increasingly demand clean-label, low-fat, and functional snacks. Premiumisation, regional flavour strategies, and fusion products are reshaping portfolios. Traditional and modern formats are expected to coexist, and Tier-2 and Tier-3 cities are emerging as key growth markets. Brands that balance taste, price, availability, and gradual health improvements are best positioned to succeed in India’s dynamic, high-growth snacks sector.
Gen Z in India is redefining snacking habits, which has strong implications for the future of the snacks industry. Today’s young consumers are “snackifying” their diets—preferring multiple small meals and healthier snack options over traditional eating patterns, with around 70% choosing frequent snacking and investing more time researching nutrition than older generations. This generation uses social media as a key source of food inspiration and increasingly seeks nutritious, convenient, and flavourful snacks, including baked, high protein, plant based, and fusion variants like millet or quinoa snacks. They also demand transparency, sustainability, and brands that align with their values, while balancing price sensitivity. Their reliance on food delivery platforms for healthy options further expands distribution channels. As Gen Z’s influence grows, the snacks industry is likely to shift toward innovative, health focused, convenient products, making it poised for sustained growth and diversification in line with evolving consumer expectations.
The Future
The India snacks market is expected to grow significantly over the next five years, supported by increasing urbanisation, rising disposable incomes, and changing consumer preferences toward healthier snack options. As consumers become more health-conscious, there is likely to be growing demand for low fat, low sodium, and other healthier snack variants, encouraging manufacturers to innovate and reformulate products. Regional snacks have found nation-wide reach today thanks to e-commerce and improved distribution capabilities.
Innovation in flavours, packaging, and new product introductions will further fuel market expansion, as brands refresh portfolios to cater to evolving tastes and convenience needs. Distribution expansion through organised retail, e-commerce, and modern trade channels will continue to improve snack availability and reach, supporting overall market growth.
The Indian snacks industry is set to benefit greatly from digitalisation and automation in food processing. Robotics and AI streamline high-volume operations such as packaging, sorting, and quality control, ensuring hygiene and consistency critical for ready-to-eat and packaged snacks. Smart packaging technologies—including automated sealing, vision inspection, modified atmosphere packaging, and traceability systems—enhance shelf life, reduce wastage, and improve supply chain efficiency. AI-driven demand forecasting and predictive analytics enable manufacturers to optimise inventory, minimise food waste, and align production with evolving consumer preferences. By integrating these advanced technologies, India’s snacks sector is poised for scalable growth, superior product quality, and faster market responsiveness.
(The author is a management educator based out of Bangalore)
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