Legacy brands that once defined Indian snacking culture now struggle to stay on shelves amid inflation, evolving tastes, and regulatory heat.
Think of the snacks you grew up with — the tangy Natkhat from Bikanervala, Parle’s Krackjack, or even the iconic Little Debbie-style Swiss Roll from your neighborhood bakery. Many such childhood staples are either disappearing quietly or undergoing transformations that are hard to miss. In India’s bustling snacks market, legacy products are now under siege from three sides: rising input costs, dramatic shifts in consumer preferences, and increasingly stringent government regulations.
While premium and regional brands find new footing, long-standing packaged snack brands are either vanishing or becoming shadows of what they once were.
The Triple Threat to India’s Legacy Snacks
1. Changing Consumer Behaviour
The Indian consumer today is split — on one side, there’s a growing demand for healthier, clean-label, low-calorie alternatives, and on the other, price-sensitive buyers are shifting to local or unbranded snacks that offer volume over value. This squeeze is proving deadly for mid-tier legacy brands.
“Traditional players are finding it hard to stay relevant. Health-conscious Gen Z shoppers want baked, millet-based, or low-sodium snacks, while rural and lower-income consumers are opting for local namkeen brands that sell ₹5 and ₹10 packs,” says Sneha Arora, an FMCG analyst with NielsenIQ India.
Even classic products like Parle Monaco or Haldiram’s Aloo Bhujia are facing stagnation as smaller D2C startups innovate faster and with trendier packaging.
2. Inflation and Ingredient Substitution
Rising commodity prices — palm oil, spices, lentils — have drastically raised production costs. The average price of palm oil has surged nearly 30% over the last two years, forcing many legacy brands to quietly reformulate recipes with cheaper oils or reduce package sizes, a trend known as “shrinkflation.”
“Customers notice when the taste changes or when their ₹10 pack suddenly has fewer pieces,” says Rajesh Rathi, former category head at a major namkeen brand. “There’s only so much you can cut before it damages the brand.”
Many popular items now taste “different” — not because of evolving palates, but because ingredients have changed. Substituting groundnut oil for palm oil, or synthetic flavoring for natural spices, may preserve margins but erodes trust.
3. Regulatory Pressure and Ingredient Scrutiny
The Indian government is intensifying food regulations, led by the FSSAI’s Front-of-Pack Warning Labels (FoPWL) directive, which the Supreme Court has asked to implement within three months. This regulation mandates red warning labels for high salt, sugar, and fat, threatening the perception of legacy snacks.
“Once you slap a red mark on a pack of samosa or sev, the parent won’t buy it for their child. It’s already happening with soft drinks and packaged juices,” says Shashank Joshi, VP of Marketing at Parag Milk Foods.
Additionally, artificial food colorants and synthetic preservatives like sodium benzoate are under increasing scrutiny. States like Tamil Nadu and Maharashtra are mulling state-level bans on specific additives, echoing the California-style clean-label movement in the U.S.
Several companies, including Haldiram, are already investing in R&D to reformulate their top-selling products to avoid red labels and reduce controversial ingredients. But this isn’t an easy shift for traditional brands built on flavor consistency.