Dreaming for bright career is the first priority of a young student and rightly so; you have taken a right decision to do MBA but you are expected to know and understand or at least have some idea of different markets.
This general awareness article on ‘Indian Snack Food market’ will help you in WAT/Essay/GD and PI also.
Read: Indian Snack food market
After 1995, India has seen a massive change in Snack food market. The meaning of snack has been redefined from chips and cookies to beverages, mini-meals and even three items on the plate. There is a rise in demand of snacks market which drives manufactures to grow and operate in this segment lucratively.
Due to the busier lifestyle in the recent past, the demand for convenience products has increased a lot with the thrust of packaged food in India. With the advancement of technology, urbanization, increase in purchasing power, growth in female work population, expansion of nuclear families has augmented the business of the packaged snack food and attracted a large mass toward the snack market in India. In order to save time, people are gradually shifting to ready to eat food items.
And the growth rate of the packaged food market has been remarkable in last five years. The food industry has expanded at the rate of 15.6% over the last few years. The consistent growth rate presently outlooks for driving growth in future too.
The snack food market is categorized in two broad categories as Western and traditional snack segments. The Western segment is more popular as compared to traditional. The leading traditional brands in this sector are Haldiram and ‘Uncle Chips' from Amrit Agro. But the MNC PepsiCo with its diverse range of product portfolio substantially changed the market. The other players include ITC Ltd., Bikanervala Foods Pvt. Ltd., DFM Foods Ltd., Balaji Wafers Pvt. Ltd., Balaji Wafers Pvt. Ltd., MTR Foods Pvt. Ltd., Prataap Snacks Pvt. Ltd., Parle Agro Pvt. Ltd. and Ushodaya Enterprises Pvt. Ltd.
The consumers are looking forward for healthier and flavorful options in the food market. There is an increase in the consumer interest towards snacks as there are various brands in this segment with newer technology and more benefits giving them refreshing and quick meals.
The fast expanding retail network and the convenience and ease of acquiring it, contributes towards the rapid growth of the industry. I addition, there are no such regulations and Government policies regarding the establishment of such companies in India which motivates the manufacturers to set up its units.
Apart from this, there are some challenges the Indian snack industry has which can result in a setback. Despite of so many companied in the market, the market yet needs to find Indian flavors to fully satisfy them. The new items have failed to replace the traditional food at some places. Chips and biscuits are still considered by Indians and so new categories are created which would require time and persistence. Healthier and tastier snack is still needed to raise the demands.
So the leading players in this segment are taking relevant steps to retain, sustain and grow in the market. They are trying their level best with various innovative options, tastes and flavors in the industry meeting the expectations of Indian consumers.
The Indian snack industry snack industry has major trends and developments in India over the years. It is stable at present and has strong growth potential in future.