Health-conscious consumption growth fuelled by innovations in small, affordable, and nutrient-rich products.
MUMBAI, Nov 12 (The CONNECT) – Smart snacking with health in mind is on the rise in India, a study shows.
One in five snacks now has a health connotation, according to consumer intelligence firm NielsenIQ (NIQ) which has released its latest report – “Snacking habits – From mindless to mindful?”.
NIQ is the world’s leading consumer intelligence company, delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth. In 2023, NIQ combined with GfK, bringing together the two industry leaders with unparalleled global reach.
India’s Snack & Confectionery industry, ranking second in market size across APAC, is transforming as urban consumers increasingly seek health-oriented products. The rise in lifestyle diseases has driven Indian consumers to opt for snacks that align with their health goals.
Busy lifestyles and an array of snack options have led Indian consumers to become more health-conscious and 63% of surveyed consumers seek innovative and healthy snacking options, while 50% read ingredient labels to understand nutritional value.
Similarly, in consumer tech, the trend toward health-focused products is evident. Fitness wearables experienced a 59% volume growth, while Hot Air Fryers grew by more than 100% (MAT July 2024), signalling broader health-conscious behavior.
NielsenIQ Consumer Life Study shows that 84% of surveyed urban Indian consumers exercise daily or regularly to keep fit and 48% use a fitness or exercise app.
A Fast-Growing Segment: This mindful choice trend has boosted the “Smart Snacking” segment, including health-benefiting snacks like biscuits, oats, and Greek yogurt.
According to NielsenIQ Retail Market Measurement, 1 in 5 snacks now has a health connotation, says Sonika Gupta, Executive Director, Customer Success – India at NIQ.
This segment is growing 1.2 times faster than traditional snacks in terms of value, presenting opportunities for brands to innovate in health-focused products and leverage the consumption trend, Sonika said.
Smaller, emerging players are challenging established players with competitive offerings, with single-serve packs driving demand and growing 60% faster in Smart Snacking due to mainstream pricing strategies.
Innovations: The smart snacking segment’s growth is fuelled by consumption rates twice that of the general snacks market. The consumption preference is driven by small convenient pack sizes that have demonstrated 60% higher growth compared to traditional small packs in the snacking space.
Innovations often focus on affordability and mainstream pricing to encourage Smart Snacking adoption. Notably, Smart Snacking has been growing at 16% in terms of value, but recent trends show a slowdown in count of new innovations & product launches.
NielsenIQ’s Trend Spotting survey identified the top factors driving Smart Snacking choices in India:
- Health Benefits: Consumers prioritize snacks promoting bone health, immunity, heart health, and gut health.
- Nutritional Richness: Preference for snacks rich in vitamins, minerals, and fiber.
- Natural Ingredients: Demand for snacks containing multigrains, nuts, dried fruits, and antioxidants.
Regional Insights: South and East India account for 60% of the smart snacking market, with bone health valued highly across regions. The survey reveals regional preferences:
- South India: Emphasis on healthy ingredients.
- West India: Preference for nutrient-dense snacks.
- North and East India: Importance of taste in healthy snacks.
Metros contribute the highest to smart snacking, growth in the Smart Snacking segment is also evident in rural areas and lower town classes, matching urban growth rates. Manufacturers should align their strategies with regional and demographic nuances, said Vidya Sen, Customer Success Lead – India, NIQ BASES.
Recommendations for Brands: For brands looking to succeed in India’s evolving snacking market, the report outlines 5 key strategies:
- Highlight Health Benefits: Focus on ingredients that support bone, gut, and heart health.
- Maintain Flavor: Balance health attributes with taste to meet consumer expectations.
- Emphasize Nutrient Additions Over Omissions: Focus on enriching products with essential nutrients instead of solely removing unwanted ingredients.
- Customize Offerings for Regional and Age Preferences: Tailor product offerings to meet the specific preferences of different demographics.
- Prioritize Convenience: Offer single-serve, portable packs suitable for on-the-go consumption.
As Indian consumers embrace mindful snacking, brands that cater to this health-centric shift while preserving flavor and convenience are positioned for substantial growth. This trend marks an important phase in India’s snacking landscape, where health and taste go hand in hand to meet the evolving needs of the modern consumer.
