By Martin Shwenk Leade

Copyright indiatimes

India’s snacks market is on fire, drawing attention from global food giants, private equity investors and domestic conglomerates alike. What was once a largely unorganised, fragmented industry dominated by local favourites is now becoming a battleground for billion-dollar brands. The latest interest from General Mills Inc. in acquiring a stake in Balaji Wafers, one of India’s most successful regional snack makers, underscores the strategic and commercial appeal of this fast-evolving space. US multinational General Mills is in talks to buy into Balaji Wafers, joining other suitors including PepsiCo, ITC Ltd and several private equity firms eyeing a significant minority stake, ET has reported based on information from sources.But why is this sector suddenly so attractive? The answer lies in a powerful convergence of demographics, economics, changing consumer behavior and a shift toward organised retail.Also Read: US multinational General Mills craves stake in Balaji Wafers, tooUrbanisation and lifestyle shifts are changing eating habitsIndia’s rapid urbanisation is reshaping how and what people eat. With more people living in cities, working longer hours, and commuting further, the demand for convenient, ready-to-eat snacks is soaring. Dual-income households and nuclear families, which are now the norm in urban and semi-urban India, have less time for elaborate meal preparation. As a result, snack consumption has shifted from occasional indulgence to a more regular, almost meal-replacing habit.The snack aisle has evolved beyond just traditional namkeen or chips. It now includes everything from protein bars and baked snacks to roasted seed mixes and low-fat variants, reflecting the consumer’s evolving palate and priorities.Live EventsDisposable incomes across India have been on the rise, not just in major metros but also in Tier 2, 3, and even rural areas. As spending power improves, consumers are trading up in the snack category, trying out premium, branded and even global options. This has given an enormous boost to both local and national brands that offer perceived quality, hygiene and consistency.The rural India, where incomes are rising and demand is picking up, is a vast and still-underpenetrated market that companies are eager to tap into through price-sensitive formats and targeted regional offerings.India’s large and youthful population, over 50% of whom are under 30, makes it a uniquely favourable market for snacking. Younger consumers tend to be more experimental and adventurous with food choices, creating strong demand for new flavours, textures and formats.This has led to a surge in innovation in the sector. Companies are experimenting with fusion flavours, international spices and health-forward ingredients like quinoa, millets and lentils. At the same time, regional tastes remain powerful. Brands that successfully balance local authenticity with innovation are the ones winning market share.Also Read: India is wrestling with Bharat in supermarket aislesThe shift from informal to organisedHistorically, India’s snack market was dominated by the informal sector which includes small vendors, unbranded manufacturers and local shops. But the shift toward the organised sector has gained momentum in recent years. Better packaging, consistent quality, longer shelf life and safety certifications make branded snacks increasingly preferable to the modern consumer. Organised players also benefit from stronger distribution networks, visibility in modern retail outlets and access to online channels. This is especially significant as grocery e-commerce and quick commerce platforms expand to smaller towns, providing even niche or regional snack brands with national reach.One of the most effective strategies in the Indian market has been the widespread use of low-unit price packs at Rs 1, Rs 5 and Rs 10 that make branded snacks affordable and accessible. These single-serve packs have helped brands penetrate deep into rural areas, schools and kiosks, where consumers are highly price-sensitive.New trends of health, wellness and premiumisationA major shift in consumer preference has been the growing demand for healthier snacks. This includes baked over fried options, snacks with lower salt and oil content and those made from natural or high-protein ingredients. With growing awareness around issues like obesity, diabetes, and heart disease, a health-conscious consumer class is emerging and driving demand for “better-for-you” snack alternatives.Healthy snacking brand Farmley said in its Healthy Snacking Report for 2025 that 55% Indians now prefer preservative-free snacks, while 52% choose eco-conscious packaging blending health, taste and function. According to the report, snacking habits are being reshaped by lifestyle changes, with 45% consumers preferring on-the-go snack formats such as dry fruit-based desserts and energy bars.This health trend is complemented by premiumisation. Consumers are increasingly willing to pay more for perceived value, be it premium packaging, artisanal ingredients or exotic flavours. For many middle-class households, premium snacks are not just food but lifestyle statements.Why PE firms and multinationals are rushing inThe interest in Indian snack companies is not just consumer-driven but it’s also financial. A number of recent high-profile deals, including Temasek’s investment in Haldiram’s and now the interest from General Mills, PepsiCo, and private equity players in Balaji Wafers, are testament to the sector’s profitability and scalability.Investors see strong moats in regional brands with loyal customer bases and efficient operations. For multinationals, backing or acquiring such companies offers a fast track to market share, especially in a country as vast and diverse as India. For example, Balaji’s success has been built on a lean, low-cost model with tight operational control, minimal advertising spend and sharp pricing, making it highly attractive to investors who value sustainable margins.The sector also offers resilience. Snacking is not easily disrupted by economic downturns. Even during tough periods, consumers may cut back on big-ticket items, but snacks, especially affordable ones, remain part of daily life.According to the IMARC Group, India’s snacks market was valued at ₹42,695 crore in 2023 and is expected to more than double to ₹95,522 crore by 2032. That’s a compound annual growth rate (CAGR) of nearly 10%, far outpacing many other consumer categories.Segments like extruded snacks, ready-to-eat ethnic items, and health-focused variants are projected to grow even faster. The momentum is further bolstered by India’s large population, growing access to retail infrastructure, and digitisation of consumer behaviour.India’s snacks market is in the midst of a transformation, growing in volume, value, and complexity. What makes it unique is the coexistence of mass, mid-market, and premium offerings, each catering to different segments of a vast and hungry population. The sector’s appeal lies not just in the numbers but in its diversity, adaptability and resilience. Whether it’s a multinational looking to gain a foothold, a private equity fund seeking growth returns or a regional brand ready to scale, the opportunities are immense.Despite the heady growth, the market is not without challenges. Price sensitivity remains a critical issue. Even a small hike in pack price or reduction in grammage can prompt consumer backlash or down-trading. Raw material inflation, especially in items like potatoes, edible oils, or spices, can hit margins if not managed carefully. There’s also stiff competition from the informal sector, especially in rural areas where consumers may prefer a local snack maker for reasons of taste, price, or familiarity. Regulatory challenges around food safety, labelling, and packaging standards also need careful navigation, particularly for smaller brands scaling up. Additionally, health-focused products must walk a fine line between taste and nutrition. Products that are healthy but lack the sensory satisfaction of traditional snacks may struggle to gain mass appeal.Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)

Read More News onbalaji wafersIndia snacks market growthbalaji wafers stake saleGlobal food giants in Indiaindian snacks marketITC and PepsiCo snack marketPremium snacks in IndiaHealthy snacking trends IndiaRegional snack brands IndiaSnack industry investment India

(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

(You can now subscribe to our Economic Times WhatsApp channel)Read More News onbalaji wafersIndia snacks market growthbalaji wafers stake saleGlobal food giants in Indiaindian snacks marketITC and PepsiCo snack marketPremium snacks in IndiaHealthy snacking trends IndiaRegional snack brands IndiaSnack industry investment India(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless