|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Northern expedition: How brands are conquering traditional snack market
|
|
Thursday, 03 July, 2025, 15 : 00 PM [IST]
|
|
Kedar Chitale
|
From the bustling lanes of Chandni Chowk to Indore’s vibrant Sarafa Bazaar, and from the ghats of Banaras to the sacred surroundings of the Golden Temple, the air of North India is rich with the aroma of traditional snacks—flavours that have delighted generations and carved a special place in the country's culinary heritage.
India’s snacking journey from paper wraps to attractive plastic pouches and from the roadside stalls to supermarket corridors has many dimensions. This transformation is the story of how brands managed to bridge the gap between the modern convenience without compromising the traditional taste. It’s the tale of successful integration of legacy and technology.
India's northern snack market is dominated by traditional and regional savoury snacks such as mathris, bhujia, namkeens, samosas, chole bhature and aloo tikki, which are especially popular in states like Punjab, Delhi and Uttar Pradesh. These snacks are typically spicy and savoury, with preferences for roasted and fried varieties.
Snacking has become an integral part of the lifestyle. Be it Bhujia, Mathri, or Bakarwadi, no festival, birthday, or celebration feels complete without these savoury delights. In 2024, the Indian snacks market was valued at Rs 46,571.3 crore and is projected to grow at an approximate CAGR of 8.63%, reaching Rs 1,01,811.2 crore by 2033. Given the dense population and deep-rooted food culture, the North Indian market is set to play a pivotal role in driving this growth.
Conquering the untapped market potential
The North Indian market has enormous potential, with rural and semi-urban areas representing the biggest opportunity. Brands are aggressively expanding their footprint beyond Tier-1 cities. In order to penetrate deeper into smaller towns, they are investing heavily in streamlining the supply chain and distribution network. Creating a proper distribution channel—from super stockists to retail sellers— not only ensures smoother product availability but also helps brands establish a strong foothold in newer markets.
As the market is price-sensitive, price-point optimisation is a critical factor in demand generation. Rural consumers often tend to make smaller but more frequent purchases compared to urban bulk-buying patterns. This consumer behaviour has compelled brands to introduce small-sized snacking items at lower price points. Hence, the mini-avatar of Bakarwadi, Samosa, Kachori and other snacks are trending and hot favourites.
The North Indian market is a powerhouse of opportunity, particularly in rural and semi-urban regions, where consumer demand for packaged snacks is rapidly rising. In response, brands are actively expanding beyond Tier-1 cities, investing heavily in robust supply chains and distribution networks to penetrate deeper into smaller towns and underserved areas.
To ensure consistent product availability, companies are developing structured distribution models ranging from super stockists to local retailers. This strategic approach is enabling smoother last-mile delivery and helping brands gain a firm foothold in new markets.
Given the region’s price-sensitive nature, optimising pricing strategies has become essential for driving demand. Rural consumers typically prefer smaller, more frequent purchases over urban-style bulk buying. This shift in buying behaviour has led to the growing popularity of affordable, smaller-sized snack offerings. As a result, mini versions of traditional favourites like Bakarwadi, Samosa and Kachori are witnessing a surge in demand, becoming top picks among consumers in these expanding markets.
Targeting the new consumer segment
The millennial and Gen-Z consumer segments represent a paradigm shift in traditional snack consumption patterns. These consumers seek convenience and authenticity without compromising on their health. Hence, while catering to these consumers, brands are responding by developing products with specific lifestyle needs—grab-and-go packaging for working professionals, premium variants for gifting and healthier alternatives without compromising on taste.
Brands are investing heavily in R&D to introduce new flavours in the traditional snacks segment. They are also betting big on protein bars and snack bars, which are both healthy and authentic. Brands are adopting an innovative approach by offering traditional snacks in the form of a bar, creating a unique, flavourful experience for consumers.
The festival and seasonal strategy has also evolved over the years. It has expanded beyond Diwali. Brands now create specific product lines for regional festivals like Karva Chauth, Holi and local harvest celebrations. This approach helps establish deeper community connections while driving sales throughout the year, rather than relying solely on peak festival seasons.
Along with this, it's important for brands to undertake a consumer-centric approach to attract the new-age and urban consumers. To address their demand, brands are going with an omni-channel approach. While maintaining a strong presence in traditional kirana stores, they are also expanding aggressively through modern trade channels including supermarkets, e-commerce platforms, and D2C sales.
To understand consumer behaviour and buying patterns, brands are adopting a data-driven approach, using consumer analytics to optimise product offerings and distribution strategies.
Millennials and Gen Z are reshaping how snacks are consumed in India, demanding more convenience, authenticity and healthier choices – without sacrificing taste. In response, brands are rethinking their strategies, developing products that align with modern lifestyles. From grab-and-go packs designed for busy professionals to premium options suited for gifting, the focus is on versatility and relevance.
Healthier snacks are now front and centre, with brands pouring investment into research and development to reinvent traditional offerings. This includes launching new flavours in classic snacks and expanding into the protein and snack bar space, where health meets heritage. Companies are leading the charge by turning traditional snacks into bar formats, blending innovation with familiar tastes to offer a fresh experience.
The festive sales strategy has also evolved. Instead of relying solely on Diwali, brands are now tapping into a wider range of cultural and seasonal celebrations – from Karva Chauth and Holi to regional harvest festivals – helping maintain consistent engagement and sales throughout the year.
To win over urban and young consumers, brands are taking a global approach to flavour. After the popularity of piri-piri, a new wave of Korean-inspired flavours is making its way into the snack aisle, appealing to trend-conscious buyers.
Distribution strategies are also seeing a shift. While traditional kirana stores and supermarkets remain important, brands are expanding rapidly across e-commerce, direct-to-consumer platforms and quick-commerce apps to meet consumers where they shop.
Behind the scenes, a more data-driven, consumer-centric approach is taking root. Brands are leveraging AI and data analytic tools to better understand preferences and optimise their product lines accordingly – ensuring they stay ahead in a fast-changing market.
Innovative packaging
Innovative and attractive packaging has become a primary marketing tool. While it is important to maintain the durability of the product, packaging also serves as a major point of attraction for consumers. Visual appeal plays a key role in penetrating the North Indian market and in attracting younger demographics.
Trendy packaging with vibrant colours and the photo of a brand ambassador or a celebrity endorsing the product has become the new mantra for success. This helps the product stand out in crowded retail stores. Premium packaging or gifting hampers also hold significance in North India, as they command higher margins and reinforce cultural value.
Brands are now becoming more cautious about sustainable practices. They prefer biodegradable, recycled, or recyclable materials while reducing the use of plastic. Some brands are also opting for innovative alternatives, such as edible packaging materials for specific product segments.
Challenges of unorganised sector
Despite extensive marketing and distribution efforts by major brands, the unorganised sector continues to dominate significant portions of the traditional snacks markets. Local vendors often compete on price and maintain customer loyalty through personal relationships.
To counter this, brands focus on communicating clear value propositions – consistent quality, hygiene, nutritional transparency and convenience. Emphasising on food safety and quality control that is practised by the brands, helps shift consumer preference towards organised products.
Price competitiveness remains a challenge. Brands address this through operational efficiency, economies of scale and strategic portfolio management, including value packs and seasonal promotions.
Building brand loyalty is critical in markets with a strong unorganised presence. This involves consistent quality, innovation, and strong customer engagement. Emotional connections through storytelling and cultural relevance enable brands to command premium pricing in competitive markets.
Ultimately, organised players are strengthening their position by combining authentic regional flavours with health-conscious innovations, affordable packaging, and tailored distribution and marketing strategies.
(The author is partner, Chitale Bandhu Mithaiwale)
|
|
|
|
|
|
|
|
|
|