Overview

India’s packaged snack consumption stalled in 2025, with households consuming around 12.8 kg on average, unchanged from the previous year. According to Kantar data,  shoppers held back on increasing their snack purchases despite not cutting back significantly on items like biscuits, noodles, and namkeen.

Fewer Trips, Less Growth

Kantar analysts explained that snack consumption grows when shoppers either buy more often or pick up more each time. But in FY25, snack-buying trips didn’t increase, marking the first such dip since the COVID pandemic began.

Biscuits, Noodles Lose Flavour

Biscuits and noodles saw a drop in household consumption. Biscuits, making up 56% of the snack volume, grew just 1% in FY25, down from 10% growth in FY24. Instant noodles and items like pasta and vermicelli also lost steam. Overall snack volume growth slowed to 4%, compared to 9% a year earlier. Even savoury snacks, which surged by 11% in FY24, grew just 7% this year.

Inflation Shrinks Pack Sizes

Manufacturers blamed the rise in edible oil prices—up by 40–45% since last year—for driving up costs. “We reduced grammage in small packs due to cost pressure, which led to lower sales volumes,” said Mayank Shah, VP at Parle Products. He pointed out that small packs drive 80% of the total snack market. Although oil prices may stabilise, they remain high and continue to impact production and consumption.

Shoppers Turn to Budget Brands

Faced with rising prices, many consumers opted for regional and off-brand snacks. A Mondelez survey from October 2024 noted a shift toward smaller portions, coupons, and bulk buying. “Even with rising costs, 86% of consumers still see snacking as a daily pick-me-up,” said Nitin Saini, VP of Marketing at Mondelez India. He stressed the need for affordable packs, smart pricing, and innovation.

Pandemic Spike Levels Off

Experts called this slowdown a post-pandemic correction. “The high growth we saw during COVID-19 was bound to stabilise,” said K Ramakrishnan, MD – South Asia, Worldpanel Division at Kantar. Manoj Verma, COO at Bikaji Foods, added that while growth has cooled, snacks remain one of the most resilient food categories.

Source: The Economic Times