India Savory Snacks Market Outlook to 2030

India Savory Snacks Market Overview

• The India Savory Snacks market is valued at USD 14 billion, based on a five-year historical analysis. This market is driven primarily by changing consumer lifestyles, increased disposable income, and a growing demand for on-the-go and convenience foods. With a large, youthful population and the rise of urbanization, the market has experienced continuous growth. Urban consumers are especially seeking snacks that fit into fast-paced lifestyles, contributing to the expansion of this industry.
• The dominant regions in Indias savory snacks market include Maharashtra, Delhi-NCR, and Karnataka. These regions lead due to their dense urban populations, higher consumer spending, and well-developed retail infrastructure. Additionally, states like Gujarat have seen increased activity due to the presence of major manufacturers and distribution networks, which further consolidate their market dominance.
• In 2023, the Food Safety and Standards Authority of India (FSSAI) introduced stricter regulations for processed and packaged food products, including savory snacks. These regulations focus on reducing trans fats, sodium levels, and artificial additives in food products. As a result, snack manufacturers are required to reformulate their products to meet these guidelines. Compliance with these regulations is necessary to avoid heavy fines, which reached INR 10 crore for non-compliant companies in 2024. These initiatives are pushing the industry towards healthier product offerings and more transparent labeling.

India Savory Snacks Market Segmentation

By Product Type: India's savory snacks market is segmented by product type into potato chips, extruded snacks, nuts and seeds, popcorn, and traditional Indian snacks. Potato chips maintain a dominant share of the market under the segmentation product type, driven by their enduring popularity among both urban and rural consumers. Global and domestic brands such as Lays and Haldirams have leveraged extensive marketing campaigns and distribution channels to further cement this segments dominance.

By Distribution Channel: Savory snacks in India are also segmented by distribution channel into supermarkets and hypermarkets, convenience stores, e-commerce, specialty stores, and traditional grocery stores. Supermarkets and hypermarkets hold a dominant market share due to their widespread presence in urban areas and growing preference among consumers for organized retail shopping experiences. The rise of private-label products within these large retail formats has also boosted this channel's prominence.

India Savory Snacks Market Competitive Landscape

The India Savory Snacks market is dominated by key local and global players, which include both well-established names and emerging brands. The competitive environment showcases the impact of these companies through strong brand loyalty, large distribution networks, and continuous innovation in product offerings.

India Savory Snacks Market Analysis

Growth Drivers

• Changing Consumer Preferences Toward Healthier Snacks: The shift in consumer preferences toward healthier snacks has been a significant growth driver in the Indian savory snacks market. In 2024, nearly 150 million health-conscious consumers are actively seeking low-fat, baked, or roasted snack options, especially in urban regions. This has pushed snack manufacturers to innovate and introduce more health-centric products such as roasted namkeen, multigrain chips, and baked snacks. The Food Safety and Standards Authority of India (FSSAI) has also implemented stricter regulations to reduce trans fats and sodium levels in snacks, pushing companies to reformulate products to meet these standards. This trend is expected to continue as consumers become more aware of their dietary choices and look for snacks with natural ingredients.
• Growing Middle-Class Consumer Base: Indias middle-class consumer base, estimated at over 400 million people in 2024, continues to drive the growth of the savory snacks market. These consumers, especially in urban and semi-urban areas, have greater access to packaged food and are willing to spend on convenience foods such as ready-to-eat snacks. According to data from the National Sample Survey Office (NSSO), the average monthly expenditure on snacks and ready-made food products has increased by INR 500 per household in the last two years, making it one of the key drivers for market growth.
• Expansion of Organized Retail Channels: The proliferation of organized retail channels, including supermarkets and hypermarkets, has significantly boosted the availability and visibility of savory snacks. In 2024, the number of organized retail outlets reached over 150,000 across Tier I and Tier II cities, according to government retail data. These retail formats offer a wider range of products, promotional discounts, and bulk-buying options, all of which contribute to higher sales of savory snacks. Additionally, the presence of organized retail chains has improved the distribution network for snack manufacturers, making it easier to reach end consumers.

Market Challenges

• Rising Costs of Raw Materials: The increasing costs of key raw materials such as potatoes, edible oil, and packaging materials are posing a significant challenge to snack manufacturers in India. In 2024, the price of edible oil reached INR 150 per liter, marking an increase of INR 50 compared to the previous year, according to the Ministry of Consumer Affairs. Similarly, the cost of packaging materials such as plastic has risen by INR 10,000 per metric ton due to global supply chain disruptions. This sharp increase in input costs is squeezing profit margins for manufacturers, making it difficult to maintain affordable pricing for consumers.
• Health Awareness Impacting Consumption: With nearly 60% of the adult population in India becoming more conscious about their diet and health, as indicated by government health surveys, there is growing resistance to traditionally fried and high-sodium savory snacks. This change in consumer behavior has resulted in declining sales for certain categories such as fried potato chips and deep-fried namkeen. Snack manufacturers are under pressure to introduce healthier alternatives that cater to this health-conscious demographic. Companies that fail to adapt to this trend are likely to face revenue losses in the coming years.

India Savory Snacks Market Future Outlook

Over the next five years, the India Savory Snacks market is expected to see significant growth driven by increasing urbanization, rising disposable incomes, and evolving consumer preferences for healthier snack options. As consumers become more health-conscious, there is likely to be a growing demand for low-fat, low-sodium, and gluten-free snack options. Additionally, innovations in flavor, packaging, and new product introductions will further fuel the growth of the market. Companies that capitalize on these trends are poised to gain a competitive advantage in the evolving snack market.

Market Opportunities

• Introduction of Healthier Snack Options: The growing health consciousness among Indian consumers presents a significant opportunity for snack brands to introduce healthier products. Government health data shows that nearly 200 million Indian consumers are actively seeking low-fat, low-sodium, and baked snack options. Brands that can successfully innovate and offer healthier alternatives, such as multigrain snacks or snacks fortified with nutrients, are likely to capture a larger share of the market. Some companies have already reported a 5-8% increase in sales of their health-conscious snack ranges in 2023-2024.
• Expansion into Rural Markets: Rural India, home to over 900 million people as of 2024 (World Bank), offers a largely untapped market for savory snacks. The governments continued investment in rural infrastructure, such as the Pradhan Mantri Gram Sadak Yojana, has improved rural connectivity, making it easier for manufacturers to distribute their products in these areas. Industry experts suggest that snack consumption in rural India could increase by INR 1,000-1,500 crore annually, offering lucrative growth potential for brands that can establish a foothold in these regions.