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Regulatory hurdles & stringent guidelines present challenges for namkeen
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Tuesday, 07 October, 2025, 16 : 00 PM [IST]
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Dr Priyanka Kale
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Namkeen products means savoury, salty, and spicy traditional Indian snack foods that are usually made from ingredients like gram flour (besan), lentils, rice, corn, potatoes and spices. They are a broad category of ready-to-eat snacks that are crunchy, flavoured, and consumed with tea/coffee, as a side dish, or even as a stand-alone snack. Namkeen - Indian savoury snack foods, as opposed to sweets (mithai). Examples of Namkeen products are as follows: Sev (thin fried noodles made of gram flour); Bhujia (spiced gram flour strands, like Bikaneri Bhujia); Mixtures/Chivda (a mix of fried lentils, nuts, spices, puffed rice); Farsan (Gujarati snacks like gathiya, dhokla, khandvi – some are fried, some steamed); Aloo Bhujia (potato and gram flour fried strands); Spiced Nuts/Peanuts; Murukku / Chakli (South Indian spiral fried snack).
The namkeen (Indian savoury snack) market in India is a large and growing sector, projected to reach US$18.97 billion in 2025 and continue growing at a significant compound annual growth rate (CAGR) of approximately 10.2% to 2029. Key trends include a significant shift from unorganised to organised market players, a surge in branded namkeen sales over loose products, and expanding distribution channels through e-commerce and increased retail presence in Tier-II and Tier-III cities. Major growth drivers include rising disposable incomes, evolving taste preferences, demand for convenience, and greater consumer awareness of healthy alternatives.
Market Size and Growth
The Indian namkeen market was estimated at US$15 billion in 2024 and is expected to grow significantly. Market research indicates a projected growth from US$18.97 billion in 2025 to US$29.39 billion by 2034, with a CAGR of around 4.98%. Another report estimates the market will grow by US$4.52 billion from 2024 to 2029, with a CAGR of 10.2%.
Market Structure
- • Organised vs. Unorganised: The market has transitioned from predominantly unorganised to an organised sector that is now growing faster than the unorganised sector.
Key Players
Major organised brands include Haldiram, Bikaji, Bikanerwala, and others, along with multinational companies like PepsiCo entering the space.
Growth Drivers - Economic Factors: Rising disposable incomes and an expanding middle class are fuelling demand.
- Changing Lifestyles: There's a growing preference for convenient and ready-to-eat savoury snacks.
- Urbanisation: Increasing urbanisation contributes to the demand for packaged snacks.
Challenges
- Regulatory hurdles and stringent food safety guidelines present challenges for market players.
Health & Innovation Trends
Consumers are showing growing interest in organic, gluten-free and healthier snack variants, prompting manufacturers to innovate accordingly. The snacks and sweets sector overall in India is expected to grow at 10–12% CAGR, driven by rising quality standards and demand for premium offerings.
Strategic Insights & Outlook
1. High Growth Potential
- India’s Namkeen market is poised for approximately 10% annual growth in the near term, outpacing global growth averages.
2. E-commerce & Retail Expansion Are Key
- Online channels and retail penetration, especially in smaller towns, will expand market access substantially.
- Health-centric variants, diversified flavours, and convenient packaging will attract modern consumers.
4. Short-Term Volatility Exists
- Price sensitivity and innovation slumps may temper growth in the short run, as seen in FY25.
5. Global Opportunities Await
- Brands can explore export potential, leveraging rising interest in Indian savoury snacks across APAC and North America.
Classification of Namkeen Products
Category
(Ingredient base)
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Examples
of Namkeen Products
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Pulse-based
(Gram flour / lentils)
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Sev,
Bhujia, Gathiya, Masala Chana Dal
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Cereal-based
(Rice, wheat, corn, poha)
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Chivda,
Murmura (puffed rice mix), Cornflakes mixture, Wheat sticks
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Potato-based
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Aloo
Bhujia, Potato Sev, Potato chips (spiced Indian style)
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Nut-based
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Masala
Peanuts, Spiced Cashews, Almond Mixtures
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Mixed
(combinations)
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Mixtures/Namkeen
mix (fried lentils + nuts + rice flakes + sev)
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Regional
Farsan (traditional)
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Khaman
Dhokla, Khandvi, Patra, Chakli/Murukku
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Scope for namkeen products
The scope of Namkeen products is very wide, both in India and internationally, because of changing lifestyles, rising demand for convenience foods, and global recognition of Indian snacks. The scope of Namkeen products is very promising, with strong domestic consumption, rising exports, growing organised retail, and continuous innovation in flavours and health-focused variants.
1. Domestic Market (India)- Huge Consumption Base: India is the largest consumer of Namkeen, with snacking being part of daily eating habits across all regions.
- Tier II & III Cities Growth: Expansion of supermarkets, retail chains, and online platforms in smaller cities is boosting sales.
- Organised vs. Unorganised Sector: Traditionally dominated by local halwai shops, but organised brands (Haldiram’s, Bikaji, Balaji, ITC, PepsiCo’s Kurkure) are capturing bigger shares due to packaging, hygiene, and standardisation.
- Innovation in Flavours: Growing demand for unique flavours (peri-peri, tomato-masala, cheese-sev) to cater to younger consumers.
- Health-Oriented Variants: Introduction of baked, roasted, low-fat, and millet-based namkeen targeting health-conscious consumers.
2. Export & International Market- Rising Global Popularity: Indian diaspora worldwide drives demand in USA, the UK, Middle East, Canada, and Australia.
- Export Opportunity: Branded packaged namkeen is increasingly exported, especially by companies like Haldiram’s and Bikaji.
- Fusion Snacks Trend: Indian namkeen is being introduced as a part of fusion snacks in global markets (e.g., chivda as cereal mix, spiced peanuts in bars).
3. Industrial/Business Scope- Small & Medium Enterprises (SMEs): Entry-level businesses can start with regional specialties (like bhujia in Bikaner, farsan in Gujarat, murukku in Tamil Nadu).
- Large Scale Manufacturing: Automation, better packaging, and supply chain improvements are scaling up production.
- Private Label Branding: Retail chains and e-commerce are encouraging private-label namkeen brands.
- Online & Quick Commerce Growth: Swiggy Instamart, Blinkit, Amazon, Flipkart are creating 24/7 accessibility for namkeen products.
4. Challenges to Address- High Competition (local vs branded).
- Health Concerns (oil-fried, high salt content ? obesity, hypertension risks).
- Raw Material Price Volatility (flour, edible oil, spices).
- Need for Continuous Innovation to keep consumer interest.
Future Prospects- Indian Namkeen market expected to grow at ~8–10% CAGR (2024–2029), faster than the global average.
- Rising demand for premium, hygienic, and health-conscious snacks.
- Strong export growth potential as Indian snacks gain international recognition.
- Expansion into ready-to-cook kits and healthier snack packs (like roasted sev, millet murukku, baked chivda).
(The author is assistant professor, MIT College of Food Technology, Chhatrapati Sambhajinagar. She can be reached at priyankakale665@gmail.com)
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