Extruded Snacks Market has valued at USD542 million in 2023 and is anticipated
to project robust growth in the forecast period with a CAGR of 6.4% through 2029.
The India Extruded Snacks market has witnessed remarkable growth in recent
years, reflecting changing consumer preferences, urbanization, and an evolving snacking
culture. Extruded snacks, characterized by their crunchy texture and diverse
flavors, have become a popular choice among consumers of all age groups. In
this overview, we delve into the key facets of the India Extruded Snacks
market, exploring its market dynamics, leading players, consumer trends,
challenges, and promising opportunities.
urbanization and hectic lifestyles have led to an increased demand for
convenient and ready-to-eat snacks. Extruded snacks fit this demand perfectly,
offering a quick and satisfying snacking option. Additionally, manufacturers in
this market constantly innovate with flavors and ingredients, catering to
diverse taste preferences. From traditional masala flavors to more exotic
options, consumers have a wide variety to choose from. Furthermore, India's
youthful population, which forms a significant consumer base, is inclined
toward snacking. Extruded snacks are positioned as a trendy and enjoyable
choice among the younger generation.
snacks are often priced competitively, making them accessible to a wide range
of consumers, including those with varying income levels. Additionally, the
extensive reach of distribution channels, including convenience stores,
supermarkets, online retailers, and local kirana shops, ensures that extruded
snacks are readily available to consumers across urban and rural areas.
conclusion, the India Extruded Snacks market is a dynamic and evolving segment
within the country's snacking landscape. Driven by changing lifestyles, flavor
innovation, and a youthful demographic, extruded snacks have secured a
prominent place in the Indian snacking culture. While challenges related to
health concerns and competition persist, opportunities for growth and
innovation continue to abound in this flavorful journey of snacking in India.
Key Market Drivers
Changing Consumer Lifestyles
of the primary drivers of the India Extruded Snacks market is the rapid
transformation of consumer lifestyles and the increasing pace of urbanization.
As more people move to urban areas in search of employment and improved living
standards, their eating habits and snacking preferences undergo a significant
is often associated with hectic schedules and a fast-paced lifestyle. Extruded
snacks fit seamlessly into this lifestyle as they are convenient, readily
available, and require no preparation. Busy urbanites find it easier to grab a
pack of extruded snacks for a quick and satisfying snack on the go.
culture of snacking is gaining prominence in urban areas. With longer working
hours and less time for traditional meals, urban consumers are inclined to
snack multiple times a day. Extruded snacks offer a wide range of options to
satiate these in-between-meal cravings.
consumers are exposed to a diverse range of flavors and cuisines, both
domestically and internationally. Extruded snack manufacturers have capitalized
on this by introducing innovative flavors and seasonings inspired by Indian and
global tastes. This variety appeals to consumers looking for exciting and
unique snacking experiences.
Rising Disposable Income and
has witnessed a significant increase in disposable income levels over the
years, particularly in urban and semi-urban areas. As disposable incomes rise,
consumers become more inclined towards aspirational consumption, which includes
indulging in premium and branded snacks like extruded products.
with higher disposable incomes often show a preference for branded extruded
snacks. They associate brands with quality, taste consistency, and
trustworthiness. This preference for branded snacks contributes to the market's
snack manufacturers have tapped into the premiumization trend by offering
upscale and gourmet variants of their products. These premium offerings are
positioned as indulgent treats and are priced accordingly, catering to
consumers willing to pay a premium for quality and taste.
consumers become more health-conscious, there is a growing demand for healthier
extruded snack options. Manufacturers have responded by introducing baked,
multigrain, and low-fat variants. This health-conscious segment is willing to
pay a premium for snacks that align with their dietary preferences.
Innovation in Product
plays a pivotal role in driving the India Extruded Snacks market. Manufacturers
are continually exploring new flavors, ingredients, and product formats to
captivate consumers' taste buds and maintain their interest.
introduction of unique and unconventional flavors is a prominent driver.
Manufacturers conduct extensive research to identify flavors that resonate with
the Indian palate. From classic masala to exotic international tastes, the
range of flavors available in the market is constantly expanding.
the demand for healthier options, manufacturers are innovating by using whole
grains, pulses, and vegetables in their extruded snacks. These healthier
variants appeal to consumers seeking nutritious yet flavorful snack choices.
flavors, texture and mouthfeel are critical aspects of extruded snacks.
Innovations in extrusion technology have enabled manufacturers to create snacks
with varying textures, from crunchy to melt-in-the-mouth. This diversity caters
to different preferences.
in packaging have also contributed to market growth. Single-serve packs,
resealable options, and snack-sized portions make extruded snacks more
convenient and portable, enhancing their appeal to consumers.
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Key Market Challenges
Intense Competition and Market
of the primary challenges in the India Extruded Snacks Market is the intense
competition and market saturation. The market is flooded with a wide range of extruded
snacks, including potato-based snacks, corn-based snacks, and other innovative
products. This saturation makes it increasingly difficult for new entrants to
differentiate themselves and gain a foothold in the market.
competition often leads to price wars among manufacturers, resulting in lower
profit margins and reduced brand loyalty. Companies must invest heavily in
marketing and advertising to stand out in a crowded market, which can strain
resources. To stay competitive, brands must continuously innovate and introduce
new flavors and product variants, which can be expensive and risky.
and target specific niche segments within the market, such as healthy snacks,
organic snacks, or snacks with regional flavors. Catering to specialized
consumer preferences can reduce competition.
on delivering high-quality snacks that stand out in terms of taste, texture,
and ingredient quality. Premium offerings can justify higher prices and foster
with local farmers or producers to source unique ingredients or flavors,
creating a distinct competitive advantage.
Fluctuating Raw Material Costs
India Extruded Snacks Market heavily relies on raw materials like potatoes,
corn, rice, and various flavoring agents. Fluctuations in the prices of these
raw materials can significantly impact production costs and profit margins.
material prices can vary seasonally due to factors like crop yields, weather
conditions, and supply and demand dynamics. Global factors such as international
commodity prices and currency exchange rates can lead to price volatility in
raw materials. Ensuring a consistent and reliable supply of quality raw
materials can be challenging, especially for small and medium-sized
multiple sources for key raw materials to reduce dependency on a single
supplier or region.
into long-term contracts with local farmers to ensure a stable and consistent
supply of raw materials.
strategies such as forward contracts or hedging to mitigate the impact of price
Regulatory Compliance and
consumer awareness of health and wellness continues to grow, regulatory bodies
are becoming more stringent in their oversight of food products, including
extruded snacks. Compliance with food safety and labeling regulations is
crucial but can be a significant challenge for manufacturers.
Regulations: Keeping up with evolving food safety and labeling regulations in
India can be complex, especially for smaller manufacturers with limited
Health Concerns: Increasing consumer awareness of health issues has led to
scrutiny of snack products for factors like high salt, sugar, and unhealthy
Labeling: Accurate and comprehensive labeling of ingredients, nutritional
information, and allergens is essential but can be challenging to implement
stringent quality control measures throughout the production process to ensure
compliance with food safety standards.
educate consumers about the nutritional value and ingredients of extruded
snacks, highlighting healthier options and responsible consumption.
closely with regulatory agencies to understand and adapt to changing regulations
and engage in dialogue to address industry-specific concerns.
Key Market Trends
Health and Wellness Focus
of the most prominent trends in the Indian extruded snacks market is the
growing emphasis on health and wellness. Consumers are increasingly health-conscious
and are seeking snack options that align with their desire for better
nutrition. This trend has led to several noteworthy developments:
Innovation: Snack manufacturers are exploring alternative ingredients and
formulations to create healthier extruded snacks. This includes using whole
grains, legumes, and vegetables to enhance the nutritional profile of their
products. For instance, extruded snacks made from chickpea or quinoa flour have
gained popularity due to their protein and fiber content.
Fat and Salt: Brands are working to reduce the levels of unhealthy fats and
excess salt in their extruded snacks. This addresses concerns about high sodium
intake and the impact of trans fats on cardiovascular health.
Labeling: Consumers are increasingly scrutinizing ingredient lists. As a
result, brands are opting for clean labeling practices, avoiding artificial
additives, colors, and preservatives. Natural flavorings and seasonings are
Snacking: Some extruded snacks are being marketed as functional foods,
incorporating ingredients like superfoods, probiotics, or added vitamins and
minerals to offer health benefits beyond basic nutrition.
Control: Smaller snack pack sizes are gaining traction as consumers seek
portion control and convenience. This trend aligns with the desire for
healthier snacking habits.
Flavor Innovation and Regional
consumers have a penchant for diverse and bold flavors. The extruded snacks
market has responded to this preference with an explosion of flavor innovation
and regional variations. Here's how this trend is playing out:
Flavors: Manufacturers are tapping into regional culinary traditions to create
snacks that cater to specific tastes. For instance, snacks infused with
regional spices like chaat masala, south Indian curry flavors, or Punjabi
tandoori spices have gained popularity.
Snacking: The fusion of different cuisines and flavors has led to unique snack
creations. Combining traditional Indian spices with global flavors like Mexican
salsa or Thai chili has resulted in intriguing snack options.
and Gourmet Varieties: Brands are introducing premium and gourmet extruded
snacks with sophisticated flavor profiles. These snacks often feature
high-quality ingredients and unique combinations.
and Limited Editions: Manufacturers are launching seasonal and limited-edition
flavors to create excitement and cater to changing preferences. Festive seasons
often see the release of special flavors.
Indulgence: Some brands are focusing on creating extruded snacks that offer a
balance between health and indulgence. These snacks may have gourmet flavors
but are also mindful of nutritional content.
Sustainability and Eco-Friendly
consciousness and sustainability have become increasingly important
considerations for consumers, and this trend is extending to the extruded
snacks market. Manufacturers are taking steps to reduce their environmental footprint:
Packaging: Brands are adopting eco-friendly packaging materials such as
paper-based and biodegradable packaging. This addresses concerns about
single-use plastic and waste generation.
Sourcing: Manufacturers are exploring sustainable sourcing practices for raw
materials. For example, using responsibly sourced palm oil or environmentally
friendly farming methods for ingredients like corn.
Food Waste: Some companies are working on reducing food waste during production
by repurposing production byproducts into other food products or animal feed.
Education: Brands are educating consumers about their sustainability efforts
through on-pack labeling and marketing campaigns. Transparent communication
about environmental initiatives helps build brand trust.
and Vegan Options: As plant-based diets gain popularity, some extruded snack
brands are introducing plant-based and vegan options. These snacks not only
cater to dietary preferences but also align with sustainability goals.
extruded snacks undeniably hold a significant share in the India Extruded
Snacks Market, making them a staple in the country's ever-expanding snack
industry. Extruded snacks, including those made from rice, have become
increasingly popular among consumers of all ages due to their convenient
packaging, diverse flavors, and crunchy textures. There are several compelling
reasons behind the prominence of rice extruded snacks in this market:
Preference: Rice is a dietary staple in India, deeply ingrained in the
country's culinary culture. As a result, snacks made from rice are a natural
choice for Indian consumers who have a long-standing affinity for this grain.
of Flavors: Rice extruded snacks come in a wide variety of flavors, catering to
the diverse taste preferences of consumers. Whether it's the spicy tang of
masala, the zing of tomato, or the mildness of salted rice puffs, there's a
flavor for everyone.
and Crunchiness: Extruded snacks, including rice-based ones, are loved for
their satisfying crunchiness. This texture is appealing to consumers, making
these snacks enjoyable to munch on during leisure time or as a quick snack.
Alternatives: Many rice extruded snacks are positioned as healthier
alternatives to traditional fried snacks. Manufacturers often use extrusion
technology to create snacks that are lower in fat and oil, attracting
Option: Rice-based snacks are inherently gluten-free, making them suitable for
individuals with dietary restrictions or gluten sensitivity. This gluten-free
characteristic has broadened the consumer base for rice extruded snacks.
Packaging: Extruded snacks are typically packaged in convenient, on-the-go
formats such as pouches and small packs. This convenience factor aligns with
the busy lifestyles of modern consumers who seek portable snack options.
Rice extruded snacks are often priced competitively, making them accessible to
a wide range of consumers, including those in urban and rural areas.
and Innovation: Manufacturers frequently innovate by introducing new flavors
and shapes of rice extruded snacks. This innovation keeps consumers excited and
engaged with the product category.
Culture: India has a robust snacking culture, with snacks being an integral
part of daily life. Rice extruded snacks fit perfectly into this culture as a
versatile and satisfying option.
Availability: These snacks are readily available across various retail
channels, including supermarkets, convenience stores, and even online
platforms. This widespread availability ensures that consumers can easily find
and purchase rice extruded snacks.
online sales channel has emerged as a significant player in the India Extruded
Snacks Market, revolutionizing the way consumers purchase these popular snacks.
Extruded snacks, which include favorites like potato chips, cheese puffs, and
corn-based snacks, have long been a staple in the Indian snacking landscape.
Traditionally, consumers relied on brick-and-mortar stores for their snack
purchases. However, the rise of e-commerce and online retail platforms has
ushered in a new era for the extruded snacks market in India.
and Accessibility: Online sales channels offer unmatched convenience and
accessibility to consumers across India. No longer bound by geographical
constraints or store hours, consumers can browse and purchase their favorite
extruded snacks with just a few clicks. This convenience has resonated
particularly well with busy urban dwellers, who often lack the time to visit
Variety and Selection: Online platforms provide an extensive range of extruded
snack options. Consumers can explore not only traditional and popular brands
but also discover niche and regional snacks that may not be readily available
in their local stores. This diverse selection caters to different tastes and
preferences, making online channels appealing to a broad audience.
Pricing and Discounts: Online retailers frequently offer competitive pricing
and discounts on extruded snacks. This pricing transparency allows consumers to
compare prices easily and make informed purchasing decisions. Moreover, the
availability of discounts and deals enhances the overall value proposition for
Information and Reviews: Online platforms provide detailed product information,
including ingredient lists, nutritional facts, and customer reviews. Shoppers
can make informed choices, ensuring that the snacks they select align with
their dietary preferences and requirements. Customer reviews offer valuable
insights into the taste and quality of the products.
Consumerism: Increasingly health-conscious consumers are turning to online
channels to find healthier and better-for-you extruded snacks. Many e-commerce
platforms have dedicated sections for organic, gluten-free, and low-fat snacks,
catering to consumers with specific dietary needs and wellness goals.
and International Availability: Online sales channels bridge the gap between
regional variations in snack preferences. Consumers can access extruded snacks
from different regions of India and even explore international options,
allowing them to indulge in a wide variety of flavors and textures.
Reach: While urban areas have seen a significant surge in online snack
purchases, e-commerce has also made inroads into rural markets. This expansion
into rural regions provides access to extruded snacks for consumers who may
have limited access to physical stores.
Buying and Subscription Services: Many online platforms offer bulk buying
options and subscription services, allowing consumers to stock up on their
favorite snacks or receive regular deliveries. These services enhance the
convenience factor and encourage brand loyalty.
Occasions and Gifting: Online channels are particularly popular during special
occasions and festivals when consumers often send snacks as gifts to friends
and family. The ease of ordering and home delivery makes online platforms a
preferred choice for festive gifting.
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The North Region of India unquestionably commands
a significant share in the India Extruded Snacks Market, a segment of the
country's thriving snacks and convenience food industry. Comprising states such
as Delhi, Haryana, Punjab, Rajasthan, and Uttar Pradesh, this region plays a
pivotal role in shaping the dynamics of the extruded snacks market. Several
factors contribute to the prominence of the North Region in this fast-growing
Urbanization and Population Density: The North
Region is home to several urban centers with densely populated areas, including
Delhi and its satellite cities. The presence of a large consumer base with
diverse tastes and preferences drives the demand for extruded snacks, which are
popular among both urban and semi-urban populations.
Changing Lifestyles: Rapid urbanization in the
North Region has led to changes in lifestyles and dietary habits. Busy urban
dwellers often seek convenient and ready-to-eat snack options, making extruded
snacks an attractive choice for on-the-go consumption.
High Disposable Incomes: The North Region
boasts some of India's most economically prosperous states. The presence of a
relatively affluent consumer base with higher disposable incomes makes it
conducive for the consumption of branded and premium extruded snack products.
Retail Infrastructure: The North Region has a
well-established and expanding retail infrastructure, including supermarkets,
hypermarkets, convenience stores, and online marketplaces. These retail outlets
offer a wide variety of extruded snack options, contributing to the market's
Diverse Consumer Preferences: The diverse
demographic and cultural landscape of the North Region leads to a wide range of
consumer preferences. Extruded snacks come in various flavors, spices, and
forms, allowing manufacturers to cater to the diverse tastes of consumers in
Brand Presence: Established national and
regional snack brands have a strong presence in the North Region. These brands
have invested in marketing and distribution networks, gaining the trust and
loyalty of consumers over the years.
Innovative Flavors: Snack manufacturers often
introduce innovative flavors and regional variations of extruded snacks to
cater to the North Region's diverse palate. These unique flavors resonate with
consumers looking for novel taste experiences.
Youth Demographic: The North Region has a
significant population of young consumers, including students and working
professionals. Extruded snacks, with their affordability and convenience, are
popular choices among this demographic.
Healthier Alternatives: As health consciousness
grows, some consumers in the North Region seek healthier extruded snack
options. Manufacturers have responded by introducing snacks with reduced salt,
oil, and healthier ingredients, meeting the demand for healthier alternatives.
Exports and Trade: The North Region serves as a
key export hub for extruded snacks, reaching international markets. The
region's strategic location and access to transportation networks facilitate
the export of these products.
- In 2023, PepsiCo India plans to invest USD105
million in the establishment of its inaugural food-focused manufacturing plant
in Assam, India. The facility, slated for operation in 2025, will employ
advanced technology and high-quality seeds to support local farmers in the
production of Lay's crisps.
- In 2021, snack major Bikano has obtained the
license for one of India's highly popular children's show characters, Chhota
Bheem, for the introduction of its extruded products range under the sub-brand
'Fatax'. The new offerings encompass Ringz (masala and tomato flavor), Puffeez,
Cheese Balls, Pasta Crunch, and Jungle Safari. This launch aims to bolster
Bikano's presence in the rapidly growing 'western snacks' market, valued at RS
16,000 crores, where extruded snacks have experienced notable growth, expanding
at a rate of 23-25 percent.
Key Market Players
- ATOP Food Products
- AUEVSS Limited (Fryo Potato Chips)
- Balaji Wafers Pvt Ltd.
- Bikaji Foods International Ltd.
- Bikanervala Foods Pvt Ltd (Bikano)
- ITC Limited
- Ceeta Industries Ltd.
- Crave Eatables
- DFM Foods Ltd
- Pepsico India
By Sales Channel
- Mixed Grains
- Convenience Stores
In this report,
the India extruded snacks market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Extruded Snacks Market, By Type:
o Mixed Grains
- India Extruded Snacks Market, By Sales
o Convenience Stores
- India Extruded
Snacks Market, By Region: