India’s savoury snacks market is entering a high-growth phase and is expected to outpace the broader packaged food industry, driven by rising incomes, rural expansion, and a growing shift toward branded products, according to a report by Ashika Institutional Equities. The market is estimated at ₹748 billion in FY24 and is projected to grow at a compound annual growth rate (CAGR) of around 13% between FY24 and FY29, compared to the anticipated 11% growth for the overall packaged food sector.
Increasing consumption in rural India is emerging as a key growth driver, supported by improving infrastructure, deeper media penetration, and rising awareness of branded offerings. Nearly 43% of the market remains unorganised, indicating significant headroom for organised players to expand. At the same time, higher disposable incomes and evolving consumer preferences are contributing to premiumisation, with a shift toward packaged and branded snacks.
While western snack categories such as chips and extruded products continue to dominate volumes, traditional Indian snacks are expected to grow faster. Ethnic snacks could register a CAGR 100–200 basis points higher than western variants, driven by regional preferences and cultural familiarity, highlighting the importance of localisation and product innovation.
Affordability remains central to the category, with the ₹5–₹10 price segment continuing to drive impulse purchases, particularly in rural and semi-urban markets. This low-unit price strategy supports deeper market penetration and volume growth.
Distribution channels are also evolving, with modern trade and digital platforms, including e-commerce and quick commerce, expanding faster than traditional general trade, supported by rapid digitisation and changing buying behaviour among urban consumers.
India’s urban population is projected to rise from 36.8% in CY24 to 40.9% by CY30, contributing to higher demand for convenient, ready-to-eat snack options. The growth of nuclear families and increased workforce participation among women are also influencing consumption patterns.
Policy measures may provide additional support, including a potential reduction in GST on packaged snacks from 12% to 5%. Government initiatives such as the Production-Linked Incentive (PLI) scheme and Mega Food Parks are also aimed at strengthening supply chains and encouraging capacity expansion across the industry.