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Smart snacking grows 1.2X faster than traditional snacks
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Thursday, 14 November, 2024, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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NielsenIQ, the world’s leading consumer intelligence company, has released its latest report - Snacking habits - From mindless to mindful? It highlights the health-conscious consumption in snacking ?market, consumer priorities, shift towards smart products enabling overall well-being.
According to estimates, India’s Snack & Confectionery industry, ranking second in market size across APAC, is transforming as urban consumers increasingly seek health-oriented products. The rise in lifestyle diseases has driven Indian consumers to opt for snacks that align with their health goals.
Busy lifestyles and an array of snack options have led Indian consumers to become more health-conscious. According to the Consumer Outlook Report, 63% of surveyed consumers seek innovative and healthy snacking options, while 50% read ingredient labels to understand nutritional value.
Similarly, in consumer tech, the trend toward health-focused products is evident. Fitness wearables experienced a 59% volume growth, while Hot Air Fryers grew by more than 100% (MAT July 2024), signalling broader health-conscious behaviour. The Consumer Life Study shows that 84%? of surveyed urban Indian consumers exercise daily or regularly to keep fit and 48%? use a fitness or exercise app.
This mindful choice trend has boosted the “Smart Snacking” segment, including health-benefiting snacks like biscuits, oats, and Greek yogurt.
Sonika Gupta, executive director, customer success – India at NIQ, said, “According to NielsenIQ Retail Market Measurement, 1 in 5 snacks now has a health connotation. This segment is growing 1.2 times faster than traditional snacks in terms of value, presenting opportunities for brands to innovate in health-focused products and leverage the consumption trend.”
Smaller, emerging players are challenging established players with competitive offerings, with single-serve packs driving demand and growing 60% faster in Smart Snacking due to mainstream pricing strategies.
The smart snacking segment’s growth is fueled by consumption rates twice that of the general snacks market. The consumption preference is driven by small convenient pack sizes that have demonstrated 60% higher growth compared to traditional small packs in the snacking space.
Innovations often focus on affordability and mainstream pricing to encourage Smart Snacking adoption. Notably, Smart Snacking has been growing at 16% in terms of value, but recent trends show a slowdown in count of new innovations & product launches.
Its Trend Spotting survey identified the top factors driving Smart Snacking choices in India:
- Health Benefits: Consumers prioritize snacks promoting bone health, immunity, heart health, and gut health.
- Nutritional Richness: Preference for snacks rich in vitamins, minerals, and fibre.
- Natural Ingredients: Demand for snacks containing multigrain, nuts, dried fruits, and antioxidants.
Regional Insights on Consumer Preferences South and East India account for 60% of the smart snacking market, with bone health valued highly across regions. The survey reveals regional preferences:
- South India: Emphasis on healthy ingredients.
- West India: Preference for nutrient-dense snacks.
- North and East India: Importance of taste in healthy snacks.
Vidya Sen, customer success lead – India, NIQ BASES, said, “Metros contribute the highest to smart snacking, growth in the Smart Snacking segment is also evident in rural areas and lower town classes, matching urban growth rates. Manufacturers should align their strategies with regional and demographic nuances.”
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