The Indian snack processing industry has been witnessing robust growth in the recent times, significantly driven by the shifting consumers preferences towards ready to eat food items, changing demographic structure of the country, rapid urbanisation within the country, and distinct lifestyle change among the consumers. Human’s food requirement is no more limited to traditional meals comprising of breakfast, lunch, and dinner, and it goes beyond basic survival necessity. 

Snacks have become an inevitable part of the daily food intake of the consumers to counter sudden food craving or to hold them up until the next meal. Furthermore, the rapidly changing consumer consumption pattern is further contributing to the growth of the market in India. India comprises of a large consumer base which includes millennials and Gen-Z and this demographic structure is further increasing with each passing day. For these consumer base the fixed three meal a day model is no longer relevant. Furthermore, the massive lifestyle change among the consumers (pertaining to hectic and busy lifestyle) is also enabling these consumers to take up snacking options catering to their convenience. All these factors significantly contribute to the increasing demand in the Indian snack processing industry.  

Asia-Pacific is the largest region in the global snack food processing industry, followed by North America in the second spot. Africa accounts for considerably the smallest demand in the global snack food processing industry. The Indian consumer base is also highly influenced by the western culture which is also a major reason driving the growth of the Indian snack processing industry. In the western countries like U.S., European Union, and others, the higher disposable incomes of the consumers, growing fondness for convenience food, along with the increased woman employment rate has intensively triggered the growth of the global snacks industry. 

Moreover, the changing family structure towards double-income nuclear families is further increasing the demand for convenient ready to eat food by many folds. Thus, snack food is being considered as the most convenient alternative over regular food, which are being consumed as a meal replacement for breakfast, lunch or even dinner purpose. This lifestyle shift of the global consumers plays a major role in maneuvering the snack consumption pattern of the Indian consumers as well.

The extruded snack segment is the largest segment in the Indian snack processing industry. The key factor boosting the market growth of the segment is the large consumption of these snacks in round the clock meals. The various extruded snack items include ready-to-eat snacks, breads, bread sticks, soy sticks, flat breads, cookies, namkeen, many breakfast cereals, some baby foods, and others. Extruded snacks are commonly consumed in small or large gatherings, parties, theatres and entertainment centres, as well as various other places. 

Extruded snacks are also largely eaten by the consumers during their free times, travelling times, and even during busy working. These eating patterns of the consumer are anticipated to boost the demand for extruded snacks in the future as well. Furthermore, these extruded snacks include a low quantity of moisture which increases their shelf life. These shelf stable and extra convenient products are ideal for the busy mundane life.  

The Indian snack processing industry is witnessing an increasing shift towards healthy snacking alternatives. This is attributed to the increasing awareness and consciousness among the younger population that consumption of unhealthy food comprising of fast food is an ineffective source of sufficient nutrition. Moreover, not only that these food products are an insufficient source of nutrients, but these food items are also harmful for the consumers as they include unhealthy portion of added sodium, sugar, and fat. 

These added ingredients make these food taste better, however consuming greater quantity of them may lead to serious health issues like heart disease, diabetes obesity, high blood pressure and others. Thus, growing awareness among the consumers regarding the side effects of too much consumption of these unhealthy snacks has created a demand for healthier snacking alternatives among the consumers. The snack processing industry has now been desired to be nutrition-rich thereby each raw material and ingredient being used is closely explored for its health-giving benefits or wholesomeness. Thus, snack processing industry or snacking as a business is undoubtedly progressing with more and more people substituting their regular meals with healthy snacks alternatives.  

The snack processing industry distributes its products through multiple distribution channels like traditional stores, supermarkets, online stores, hypermarkets, convenience stores, etc. to cater to both individual consumer and commercial organisations. Among these the traditional grocery stores are the most popular distribution channels for the consumers especially individual consumers even though the e-commerce, pickup and home delivery are coming up as more convenient shopping options. This is because majority of the Indian consumers still believe in physically touching the product before buying it. Moreover, the older generation is still not completely equipped with the use of online portals and prefer to visit the store personally for purchase purpose. 

However, this scenario is going through considerable transformation in the recent years. The growing younger population with high access to internet and technology are more and more inclined towards the online mode of purchase. Online stores provide the consumers easy access to the products, allows hassle free doorstep delivery, provide wider variety of products at single touch point, saves time, and provide adequate convenience to the consumers which comprehensively makes it a preferable option to the consumers. 

Others include convenience store, pan shops, self service stores, etc.  

The Indian snack processing industry is highly competitive in nature with the presence of multiple established brands operating in the market. Major snack processing companies in India include Haldirams, Bikanervala, PepsiCo India, ITC Limited,RPG Group, DFM Foods,Balaji Wafers, Pratap Snacks, Parle Products, and Britannia. Huge prospective demand in the market is making this industry an attractive and potential market to invest.  Furthermore, in order to attain competitive edge certain success elements are vital for unreaping their potential. Such factors include, brand competitiveness, large scale production, supply chain efficiency, implementing superior technology, effective marketing campaigns, consumer specific product innovation, and competitive pricing, etc.  

The Indian snack processing market is a high potential industry with significant growth being projected in the near future, driven by changing consumer buying behaviour, emergence of dynamic consumer base,shifting demographics, population expansion and rapid urbanisation.The government of the country also introduced multiple participative models including contract farming arrangements, terminal markets, and other, in order to benefit many private players taking part in these arrangements. 

Moreover, several foreign MNC’s like Perfetti Van Melle, Nestle, and Indo Nissin Products have successfully entered and catered to the India snack processing market with the help of a well-integrated value chain and an effective marketing strategy. Thus, citing the successful experiences of these global giants in the Indian market, the snack processing sector in India clearly appears as an attractive industry to invest thereby exhibiting considerable growth potential in the future.