A Kantar report has revealed that out-of-home snack consumption in India surged by 44% as of April-end, outstripping the global average of 14%. Indians are increasingly favouring taste over nutrition, prompting companies to emphasize portion control amid growing food safety concerns.
Snack consumption outside homes in India is growing three times faster than the global average, highlighting the Indian consumer’s preference for taste over health and nutrition.
According to a report by market tracking firm Kantar, out-of-home consumption of snacks and beverages in India increased by 44% as of April-end, surpassing the global average of 14%. Products such as soft drinks, juices, biscuits, chocolates, and salty snacks saw consumption rise between 30% and 56%, even as the number of consumers in these categories grew by roughly 10%. This indicates that Indians are more eager to indulge in their favourite treats while on the go.
“Taste is a prerequisite for any food product, and merely focusing on health and nutrition will not generate demand. These are indulgent and impulse categories, which are easy for consumers to spend on due to the availability of small packs that do not strain consumers’ wallets,” said Krishnarao Buddha, senior category head at biscuit maker Parle Products.
Kantar’s report also noted that about 90% of the Indian population consumed biscuits and cookies at least once last year, making it the most widely consumed category in the country. However, each category is consumed differently in and out of the home. For instance, biscuit consumption is twice as high at home, while salty snacks are consumed nearly equally in and outside homes. Chocolates, juices, and ice creams are consumed significantly more outside of homes.
“Most of the growth is driven by existing consumers consuming more, rather than more Indians entering the category,” said K Ramakrishnan, managing director-South Asia at Kantar’s worldpanel division. “Additionally, one in every four out-of-home purchases is a snack, with evening snacking and brunch being the two most important times, accounting for 70% of all consumption.”
India has witnessed heightened concerns over food safety amid rising consumer activism since last year. Consequently, companies are emphasizing portion control as a key parameter for consumption.
Hindustan Unilever, India’s largest consumer goods firm, stated that it adheres to global nutritional standards, which include lower salt, sugar, saturated fats, and calorie content per serving. “We have very strict guidelines. Our intention is to offer healthier choices, though parts of our portfolio are indulgent in nature, meant to be consumed in controlled portions,” said managing director Rohit Jawa during HUL’s recent earnings call.
Portion control is becoming increasingly important, with 67% of consumers seeking portion-controlled snacks. Additionally, seven in ten consumers prefer a smaller portion of an indulgent snack over a larger portion of a low-fat or sugar alternative, according to an international survey by Mondelez and the Harris Poll, which covered consumers from over a dozen countries. In India, the top motivators for snacking are nutritional needs, mood boosts, and relaxation.