India’s packaged snack industry is finding it difficult to reduce sugar content, even as consumers increasingly demand healthier, low-sugar and high-protein alternatives.
According to data from Mintel, low- or reduced-sugar products accounted for just 0.9% of new launches across chocolates, confectionery, biscuits and snack bars in the last fiscal year. While this marks a marginal rise from 0.1% in 2022, the share has stagnated over the past two years and even declined from 1.1% in 2024.
This slow progress comes despite a clear shift in consumer preferences. Teenagers—a key consumption group—and their parents are increasingly seeking healthier snack options. Nearly one-third of consumers prefer high-protein snacks, while about a quarter are actively looking for lower sugar products.
Industry players acknowledge the growing demand but say structural challenges persist. Parle Products Vice-President Mayank Shah noted that sugar-free and no-added-sugar snacks are expanding 30–40% faster than traditional categories, albeit from a low base. He added that smaller pack sizes and mindful consumption habits also contribute to lower sugar intake without requiring major product reformulation.
Companies are now shifting focus toward “better-for-you” formulations, including high-protein and no-refined-sugar offerings. Bagrry’s co-founder, Aditya Bagri, said brands are balancing health with taste, as consumer demand grows, particularly in urban markets and e-commerce channels.
However, taste and affordability remain key barriers. Zydus Wellness CEO Tarun Arora pointed out that while consumers want to reduce sugar, many are simply cutting back on sweet products rather than switching to alternatives. Reformulating products without compromising on taste or increasing costs continues to be a major challenge in India’s price-sensitive market.
Experts highlight that protein has emerged as a stronger trend, driven by fitness culture, influencer-led nutrition awareness, and post-pandemic health consciousness. Analysts say future innovation will depend on how brands deliver functional benefits—such as combining protein with fibre or reducing sugar without sacrificing taste.
As regulatory scrutiny and consumer awareness rise, snack companies are also promoting portion control as a practical approach to managing sugar intake, even as the industry continues its gradual shift toward healthier offerings.