India's savory snacks market to outpace packaged foods sector
03 Apr 2026

India's savory snacks market is expected to grow faster than the overall packaged food industry.

A report by Ashika Institutional Equities has projected this growth, estimating the Indian snacks market at ₹748 billion in FY24.

The report predicts a compound annual growth rate (CAGR) of around 13% between FY24 and FY29, outpacing the anticipated 11% growth in the broader packaged foods segment.

Rural consumption driving growth
Growth drivers

The report highlights increasing consumption in rural India as a major factor driving this growth.

This trend is backed by improving infrastructure, rising media penetration, and greater awareness of branded products.

Despite this progress, nearly 43% of the snacks market remains unorganized, leaving plenty of room for organized players to expand their presence in this sector.

Ethnic snacks to gain popularity
Market trends

While western snack categories currently dominate the market, ethnic snacks are set to grow faster with a higher CAGR of 100-200 basis points.

This is fueled by strong regional preferences and cultural affinity among Indian consumers.

The market also heavily relies on low price points, especially in the ₹5-₹10 range, underscoring the importance of impulse-driven consumption in rural areas.

Changes in distribution channels and consumer preferences
Distribution shift

Modern trade and digital channels are growing faster than traditional general trade, thanks to rapid digitization and changing consumer preferences.

Urbanization is also a key factor, with India's urban population expected to grow from 36.8% in CY24 to 40.9% by CY30.

This will drive demand for convenient ready-to-eat products as nuclear families become more common and women's workforce participation increases.

Policy support could boost market further
Future prospects

The report also notes that policy support could further boost the market.

A possible cut in GST on packaged snacks from 12% to 5% could hasten the shift from unorganized to organized sector.

Government initiatives like Production-Linked Incentive (PLI) scheme and Mega Food Parks are also improving supply chain efficiency and encouraging capacity expansion.