Snack is a type of light food products not normally eaten as a main meal such as breakfast, lunch, or dinner but to mitigate hunger between these meals. However snacks food eating is becoming a way of life with varied populations, mainly youth, children, students, working people in offices, etc. across different cultures, gender, demography, throughout the world. In some demographical segments of society of different countries, the average snack eating frequency is around 5 to 6 occasions per day between the main meals. There are plenty of marketing niches that make scope for a business opportunity in snack food globally in general and India, the Middle East, and African countries in particular.
The preferred snacks types and variety products among the varied population in India, the Middle East, and African countries that open business opportunities for new startup or conglomerate are “Corn Puffs Snack Line, Kurkure Snack Line (Fried Extruded Snacks); Pellets Chips Snack Frying Line; Potato Chips Line; Banana Chips Line; Namkeen Frying Line; Indian Snack Frying Line; Matar Frying Line; Matar Frying Line (Green Peas); Popcorn Processing Line; Caramel Popcorn Processing Line; Tortilla Chips Processing Line; Corn Tortilla Chips Process Line; and many more according to local likening”.
Generally evolving consumer needs, as well as a growing population and rising income levels, shortage of time, and changing the way of life has resulted in significant growth in the snack food sector and attracted a number of new entrants.
Present Trends in the Snack Food Industry
The snack food market is in an expansion mode globally in general and in India, the Middle East, and African countries in particular due to the changing eating habits of the majority of consumers across different segments of population and region. In today’s general and regular hectic lifestyles have made consumers reach more for smaller snack-based meals rather than traditional time-consuming heavy lunches and dinners that reduce working habits. The snack foods industry is diversifying and innovating to offer healthier snack options in the face of global concerns over the rise in obesity and other health disorders.
Globally, the snack foods manufacturing industry generates lucrative and accelerating revenue. India, the Middle East, East Asia, and African countries are the fastest-growing snack foods industry, according to Global Industry Analysts. The driving factors for this high growth are the factors fueling the market such as higher income levels, consumer perceptions, and demographics.
Among other factors, the packaging is a key element for snack industries growth as it provides consumers with options such as bite-sized packs, single-serving packages, and resalable bags proving popular. Consumers are increasingly becoming health conscious and companies that manufacture snack foods are offering healthy options such as low calorie, low fat, vitamin-fortified, organic, and fiber-rich foods.
Snack Food Market Research, Reports, & Analysis
The snack food industry comprises companies that make snack foods such as chips, nuts, popcorn, peanut butter, and many other varieties of snacks. In this industry, major products are corn puffs, kurkure (fried extruded snacks), pellets chips, potato chips, banana chips, namkeen, matar fried (green peas), popcorn, caramel popcorn, tortilla chips, corn tortilla chips, which account for sales up to 45% of the total industry revenue, and roasted nuts and seeds which account for up to 20%. Along with this, the other products include are canned nuts, peanut butter, hard pretzels, and other chips that are packaged for longer usage and they are equipped with stronger packaging solutions. More popular and preferred are the salty snack foods, which are found in most North American households making their preferences in youths, children and office going working population of Indian and MENA countries. According to research and analysis, statistically, more than half of Americans eat snacks two to three times every day and this trends are also entering in Asian and African population. According to survey, among individual products, potato chips are the most popular, then followed by tortilla chips, popcorn, and pretzels.
Scope for Snacks Food Business in India
Due to a growing population, rising income levels, changing lifestyle and food habits the Indian snacks food sector has one of the strongest growth basics of any industry. For packaged snack foods these basic fundamentals are complemented by two further growth drivers; convenience and the majority population eating habits.
With smaller families leading busier urban lives, the time and resources for regular home cooking are rapidly declining. At the same time, longer working hours and lengthy commutes leave less time for regular sit-down meals. Snack foods have been a long-time favorite in the Indian diet and now packaged and branded variants of tortilla chips, corn tortilla chips, corn puffs, kurkure (fried extruded snacks), pellets chips, potato chips, banana chips, namkeen, matar fried (green peas), popcorn, caramel popcorn, sweets, and wafers have become the most liked and preferred solution to the culinary cravings induced by the changing Indian lifestyle and eating habits. The combination of these factors is propelling the snack food sector toward a projected compound annual growth rate in the coming days. Those business-minded people who read this future trends in the snacks food segment to start their startup will be the icons of tomorrow’s snack industries in India.
The India Snacks Market will be more than INR 1 Billion by the end of 2024.
The future of “India Snacks Market” can be judged from the fact that this food industry is expected to grow with double-digit CAGR during the period 2018 to 2024. India’s snack food market is dived between organized conglomerates and unorganized sectors. At present unorganized snack food segment is dominating the Indian snacks food market. However, this scenario is expected to transform into the bigger size and unorganized players will be decision-makers in the policy formulation of this industry in the coming future. India Snacks Market is growing because of many favorable factors, like lifestyle changes, rising urbanization, growing middle-class population, local availability, long working hours in offices, and availability of snacks in small package sizes, low prices, and company’s strategies to focus on regional taste. Thus, the market research report provides a comprehensive assessment of the fast-evolving and high-growth Indian snacks market.
There is a large number of unorganized low budget players working in the Indian snacks market. Their presence is limited within a town, city, or a particular local area. They do not think too much for expansion due to a lack of budget. Therefore, their main focus and preference to develop snacks items as per the need of local consumers and their preferred taste. This helps them to be popular in that region. Also, their products are low priced compared to organized players due to government taxation and SMEs development policies in India.
Scope for Snacks Food Business in the Middle East & African countries
Ready-to-eat and ready-to-cook snacks food market in the Middle East and African countries is segmented by the types of snacks product, such as “Corn Puffs Snack, Fried Extruded Snacks, Pellets Chips Snack, Potato Chips, Banana Chips, Popcorn,Caramel Popcorn, Tortilla Chips, Instant Breakfast Cereals, Baked Snacks Food, Meat Products, and Other types of snacks”.
The Middle-East and Africa snack food market is projected to witness a CAGR of approaching 3%, during 2020 to 2025.
- The major factor driving the growth of the snacks food market in the Middle East and African countries is convenience in arranging a meal. Young consumers spend most of their income on convenient, ready-to-eat, and cook food products. Other factors making the market growth and scope for new businesses in these sectors are the changing lifestyles, food consumption patterns, due to increasing urbanization.
- The increasing demand for snacks food products in this region is influenced by hectic lifestyles, owing to the volatile economy, increasing urbanization, and the growing professional middle class. This factor, in turn, has fueled the demand for convenient and easy-to-prepare meals. This opens the door for new businesses in snack food sectors.
- The other factors of snacks food market growth that increases the scope of new businesses in snacks food ready-to-eat meal are the multilayered distribution channels, like Hypermarkets/ Supermarkets, Convenience Stores, Specialty Stores, Departmental Stores, Online Retailers, and other local distribution channels.
- In addition, high focus on export, the adaptation of new technologies, innovative promotional techniques, gaining special attention in retail format stores, retailers going for private label RTE meals, launching innovative and region-specific products, and frozen RTE snacks products gaining popularity are other factors fueling the market growth.