Summary of snacks industry:

Indian snack food industry comprises of many Indian as well as MNCs. The Indian snack market reached
a value of $307.7 million in 2001. The Indian snacks food market is of the order of 400,000 tones. This
wide range of products are categorized under Potato / Banana Chips, Namkeens & Fun-Foods. The
organized market for chips is estimated to be 6500 tons valued at Rs.2 bn. The market for branded chips
has been growing at a fast pace of around 20-25 % annually.
Since the majority of MNC's entered their venture in Ready-To-Eat Snacks & Namkeens. The project was
conducted to study the overall industry for Ready-To-Eat Snacks & Namkeens. The research was
conducted to study the actual buying behavior of the consumers and their preference for such a
category of food. Research methodology being exploratory research Questionnaire method to interview
consumers as well as retailers was adopted. Retailers were surveyed to know the actual market
behavior, whereas the consumers were surveyed to know their preference and factors affecting their
purchase. Secondary data on industry is collected through Internet, magazines & by visiting the people
in the industry.
The Research was a good experience & the final conclusion is that the consumers generally associate
Ready-To-Eat Snacks & Namkeens with Time Pass. Majority of them prefers wafers to be their first choice
with Fraiams being the second preference. Namkeens on other hand are usually preferred as hunger
quencher and are eaten whenever the consumers are hungry.
Ready-To-Eat Snacks & Namkeens are generally considered as take away food and hence the consumers
generally buy 1-2 packs and does not store them. Through the research it was concluded that the
consumers want even POPCORN to be included in this category which is also an opportunity for the
manufacturers to launch a new product and extend their product width. Overall the industry is grooming
and has vast opportunity to be cashed for the manufacturers

Munching between two meals or at tea /coffee time is a habit with most Indians. The variety of snacks offered is
almost mind-boggling with specialities from all regions, which have gained national acceptance. For example,
banana chips from Kerala is sold not only across the country, but the entire world. Potato wafer is no longer
considered a wafer-thin business. According to an Apeda (Agricultural and Processed Food Products Export
Development Authority) survey, there are about 1,000 snacks items and 300 types of savouries sold in the
country. Salty snacks whether potato chips, banana chips or crispies made of corn or wheat flour, just fried or
baked for the health-conscious today have usurped home-made savouries to become the first choice not just
for people in the big cities but also in small-town India. No wonder then, the market today for branded chips and
wafers alone stands at Rs 1,100 crore. It has grown more than 60% over the last six years. And it is by far the
single biggest item in the snacks and savoury category.
The snacks food industry in India can broadly be categorised into three segments staple (biscuits category),
traditional (namkeens) and ready-to-eat packaged snacks (chips / crisps). The RTE snacks food is slowly but
surely coming into its own, with a number of new / high profile entrants joining the fray. As consumers and
companies turn experimental, as reflected in the new variety of snacks available in the market, extruded snacks
which include the likes of PepsiCo Indias Kurkure will soon overtake potato chips as the biggest snack item in
the Indian market. Extruded snacks are snacks cooked, pressurised and pushed out of a die that gives them their
unique shape. According to a report by consultancy firm KPMG, the market value for extruded snacks which in
2009 stood at $223.7 million will touch $298.7 million by 2011. Not just that, it will be growing the fastest in the
next five years.
While Haldirams, one of Indias oldest traditional snacks makers, and PepsiCo with its Lays and Kurkure brands
dominate the market, the last five years have seen more companies join the fray. Not so long ago, the
unorganised players had a field day with the consumer opting for quantity over quality. The trend is slowly
changing with rising incomes and health-consciousness. Brand consciousness is taking precedence over cost
consciousness among a large section of consumers.
To PepsiCo goes the credit of expanding the organised snacks market. Till 1995, when PepsiCo introduced two
brands Lays and Cheetos, there were only Haldirams and Amrit Agro that launched potato chips under the brand
name Uncle Chips. When PepsiCo launched Kurkure in 1999, it became a runaway success. In 2000, Frito Lay
India, a division of PepsiCo India, acquired the Uncle Chipps brand. And from then on there was no looking back.
Aliva, the latest in its kitty, marks Frito Lay Indias creation of yet another category borrowing ingredients and

textures from biscuits and flavours from namkeens and is positioned as a healthier snacking option.
The next big leap happened in 2007, when fast moving consumer goods company ITC launched an array of
potato chips and finger snacks products under the brand name Bingo! Within a year, it grabbed a market share of
9%. Bingo brought tastes which were familiar to the Indian taste buds but with a hint of unfamiliarity. The next
innovation in the market came in lesser time. Parle Agros Hippo and Parle Products Smart Chips entered the
market in 2009. Currently, the salty snacks market stands at around Rs 7,000 crore. It is the high pace of growth
that has attracted a lot of players. The increase in competition has seen players launching their own versions of
the popular snacks of their rivals.
Consumers now want variety and new tastes. They are not loyal to any particular brand. Another factor that has
worked towards the shift from the home-made snacks to the branded packs is the price. It is challenging to give
quality and quantity at the price points of Rs 5 and Rs 10. The bulk of the consumers are in the middle and lower
middle classes. Therefore, affordability is what has driven the upsurge in the demand for snacks.
Even as there has been a proliferation of brands in the salty snacks category, there has been a gradual shift
towards offering healthier snacking options. Whether it is the no trans fat tag or healthier snacks like Smart Chips
or Aliva, consumers are looking for healthier alternatives in every food category. What is driving innovation in the
segment is the need to balance taste and health without compromising on one or the other and break this creditdebit lifestyle we live every day, says Deepika Warrier, marketing director, Froto Lay India, PepsiCo.
Several manufacturers are putting new face on snacks. One is appropriately named Sensible Portions that
presents a wide range of better-for-you snacks including all-natural choices such as multigrain crisps, pita
crackers and pita chips. In addition to convenient packaging that gives built-in portion control, ingredients like
whole grains, soya protein, vitamins, iron, and fibre are included and trans fats, saturated fats and cholesterol are
avoided. It provides a healthier feel to snacking that is highly marketable.
Use of nuts in healthy snacks continued to rise including staples like almonds and cashews as well as exotics like
pistachios and hazelnuts. Skinless almonds and cashews are roasted with real herbs and spices for
extraordinary flavour. One line of almonds has been released with low-sodium sea salt, vinegar and bold wasabi
soya variants . Another nut company introduced snack nuts that are gluten-free with all-natural ingredients and
some organics like cocoa, vanilla extract and coconut.
Peanuts can support and complement a vast range of spices and flavours. Peanut is a canvas upon which one
can display works of art, delivering healthy snacks. Fat in peanuts is also healthy which can help lower LDL
cholesterol and the risk of cardiovascular diseases. It is an excellent source of protein.
Indeed, Indians continue to show a great appetite for snacks. According to a survey conducted by electronics
payments company VISA on mystery spending or cash spent but which cannot be accounted by consumers,
Indians spend the second highest on snacks. The average mystery spending per week of young Indians in the
age group of 18 to 24 years stood at Rs 383 of which almost 36% was on snacks. The total spending per year on
snacks for one person thus stands at around Rs 7,000.
As per data from The AC Neilsen Company, the compounded annual growth rate for snacks in the rural market
over the last two years stood at 26.7% as against 13.2% for urban areas. Though rurals contribution is only
about 33%, its growing much faster than the urban markets. The way things are happening -- better spending
power of the people, good knowledge and great exposure better times are ahead for the snacks industry.
Cornitos-GreenDots Cornitos bags CMO Asia Excellence Awards in snacks

category
Cornitos, the flagship brand of GreenDot Health Foods Ltd and the leading player in tortilla crisps in Indian
branded snack food industry, has been awarded with the Best Food and Grocery Brand of the Year in Snack
Category at the CMO Asia Excellence Awards held at Pan Pacific, Marina Square, Singapore. The brand was
also conferred with a Certificate of Merit in ready-to-eat food category.
The CMO Asia Excellence Award, which acknowledges global brands across various industry segments,
adjudged Cornitos achievement in several categories in terms of Innovation, Product Diversification, Customer

Satisfaction, Excellent Quality Standards and Market Leadership.

The company stated that the brand created a niche in the industry as a healthy and tasty snacking option suiting
the customers palate. Apart from 10 exotic nacho flavours it also offers authentic Mexican Salsa dips and Coated
Green Peas under its Pop n Crunch range.
Being awarded in two different categories by the illustrious CMO Asia is indeed a moment of great pride and
privilege for us. Our team remains committed towards quality products bringing in affordable yet healthy snacking
options thus attempting to usher in a conscious change in the snack industry in India. It is always fruitful to spend
on consumer research. It is the product that matters eventually, stated Vikram Agarwal, director, Greendot
Health Foods Limited.
Cornitos is concentrating to increase the production and introduce premium product ranges this year and the
recognition at this prestigious forum confirms our growing performance. I dedicate this award to my family
members and our dynamic team and moreover special thanks to CMO Asia for this recognition, he added.
The brand has a pan-India presence. It is available across major FMCG stores such as Foodhall, Spencer's,
Easyday, Nilgiri's, More, Hypercity, Auchan, and Big Bazaar. The nacho crisps are available for onboard sales in
Air Asia, SpiceJet, Jet Airways, IndiGo, GoAir and Air India. It has presence in major multiplexes, airports and
cafes. The products are exported to the US, China, Nepal, Singapore, Nigeria, Ghana, Maldives, Hong Kong and
Sri Lanka.
Established in May 2009, the company was the first in the country to launch tortilla crisps in Indian branded
snack food category. It came out with its brand Cornitos Nachos Crisps. Its production site in Roorkee is fully
automatic and the highest hygienic standards are applied. Further, it is an ISO-22000, HACCP and Halal-certified
company. GHFL has registration from FSSAI and US FDA and is member of APEDA and SFA.
The company is a part of the well known Globe Capacitors Group of Companies founded in 1978 by its
chairman S P Agarwal and managing director Sanjay Agarwal.

Snacks Market in India 2014

This latest market research report titled Snacks Market in India 2014 elaborates the competitive
market scenario of the Indian snacks market and its growth prospects in the ensuing years. Indian
snacks market is experiencing rising demand due to various driving factors which in turn is providing
immense opportunities to manufacturers to grow and operate in the market lucratively. The report
provides a snapshot of the Indian snacks industry that has witnessed several changes since 1995.
In the initial years, the market was dominated by two players traditional snacks player Haldiram and
Uncle Chips' manufacturer Amrit Agro. Later on, with the entry of global beverage and snacks player
PepsiCo, the market dynamics changed completely. Now, the market is dominated by PepsiCo with its
wide range of product portfolio. The other major players include Parle Agro, ITC, Parle Products,
Balaji Wafers and Parle Wafers among others. A number of regional players have also entered the
market over the past few years and are giving tough competition to the big players.
The snacks market is classified into two broad segments Western and traditional snack
segments,wherein western snacks enjoy more popularity in comparison to the traditional snacks.
Moreover, the western snack segment is dominated by a large number of MNCs and organized snack
manufacturers.
There are certain factors that have predominantly worked towards enabling the sector to grow in
recent years. These include higher disposable incomes have enabled consumers to enhance their
purchasing power, rapid urbanization which leads to busy lifestyles and subsequent inclination of
consumers toward packaged food products and aggressive marketing campaigns by all the players to
break the product clutter and attract consumers toward their brand. In addition to these, the other

factors which are contributing towards rapid growth of the industry include growing working women
population, fast expanding retail network and the convenience factor associated with snack
consumption
For snacks, quality standards laid by FSSAI have to be followed by the industry players. Various
government policies that have been formulated for the food processing sector such as FDI, tax
benefits and export promotions are applicable for the snack category as well.