NielsenIQ (NIQ), a leader in consumer intelligence, has released its latest report, “Snacking Habits – From Mindless to Mindful?”, spotlighting the rising focus on health in India’s snacking market. The report reveals a shift in consumer preferences, with a strong movement towards snacks that support overall wellness and align with health goals.
According to NIQ’s estimates, India’s Snack & Confectionery industry, the second-largest in the Asia-Pacific region, is undergoing a significant transformation as urban consumers prioritize health-oriented snack options. With an increase in lifestyle-related health concerns, Indian consumers are actively choosing snacks that fit into healthier lifestyles.
The NielsenIQ Consumer Outlook Report highlights that 63% of Indian consumers prefer innovative, health-focused snacks, while 50% read ingredient labels to evaluate nutritional content. Additionally, the growing popularity of health-related consumer technology, such as fitness wearables (with a 59% increase in usage) and hot air fryers (over 100% growth as of July 2024), reflects this broader health-focused trend. According to the NIQ Consumer Life Study, 84% of urban Indians engage in regular exercise, and nearly half use fitness or exercise apps.
Smart Snacking on the Rise
This health-conscious shift has led to rapid growth in the “Smart Snacking” category, which includes options like biscuits, oats, and Greek yogurt that offer specific health benefits. Sonika Gupta, Executive Director of Customer Success for NIQ India, noted that one in five snacks now carries a health-related message, and the Smart Snacking category is growing 1.2 times faster than traditional snacks by value. Smaller, up-and-coming brands are capitalizing on this trend, especially with single-serve packs that have grown 60% faster than traditional snack pack sizes due to accessible pricing.
Smart Snacking’s expansion is driven by consumption rates double those of general snacks. With a focus on affordability, brands are encouraging wider adoption of health-focused snacks. Although the segment has grown 16% by value, there has recently been a slight decline in the number of new products and innovations in the market.
The NIQ Trend Spotting survey identified key factors driving the Smart Snacking movement:
- Health Benefits: Consumers prioritize snacks that promote bone health, immunity, heart health, and digestive health.
- Nutritional Content: A preference for snacks rich in vitamins, minerals, and fiber.
- Natural Ingredients: Demand for snacks with ingredients like multigrains, nuts, dried fruits, and antioxidants.
South and East India represent 60% of the smart snacking market, with distinct regional preferences:
- South India: Focus on healthful ingredients.
- West India: Interest in nutrient-rich snacks.
- North and East India: Emphasis on taste alongside health.
Vidya Sen, NIQ BASES India’s Customer Success Lead, adds that while metro areas are driving Smart Snacking, rural markets and smaller towns are also embracing the trend, showing growth rates on par with urban areas. NIQ suggests that manufacturers tailor their strategies to match regional and demographic preferences.
For brands aiming to succeed in India’s evolving snacking landscape, the report offers five strategic recommendations:
- Emphasize Health Benefits: Highlight ingredients that support bone, gut, and heart health.
- Balance Health and Flavor: Ensure health-focused snacks don’t compromise on taste.
- Focus on Nutrient Additions: Enrich products with essential nutrients rather than solely eliminating unhealthy ingredients.
- Customize by Region and Age: Adjust offerings to meet diverse consumer needs across age groups and regions.
- Enhance Convenience: Offer portable, single-serve packs for on-the-go consumption.
As mindful snacking gains traction, brands that balance health benefits with taste and convenience are well-positioned for success. This shift marks a new era in India’s snacking industry, blending health and flavor to meet modern consumer demands.
