India Extruded Snacks Market, By Region, Competition, Forecast & Opportunities, 2020-2030F

The India Extruded Snacks Market was valued at USD 547.89 Million in 2024, and is expected to reach USD 989.09 Million by 2030, rising at a CAGR of 6.54%. The India Extruded Snacks market is witnessing robust growth, by a combination of changing consumer lifestyles, rising urbanization, and the increasing demand for convenient, ready-to-eat snack options. As more people adopt busy, on-the-go lifestyles, there is a growing preference for snacks that are quick, tasty, and easy to consume. Also, there is an increased demand for healthier alternatives, with consumers seeking options that are low in fat, high in protein, or made with natural ingredients. The rise of innovative flavors, unique textures, and attractive packaging further fuels the popularity of extruded snacks, making them a staple in Indian households.

Key Market Drivers

Growing Working Population Across the Region

The growing working population in India is a key driver of the extruded snacks market. As a part of this, according to a recent study, as of September 2024, India's working-age population has grown since 1971 and is expected to reach 64.4% in the forthcoming Census. It will reach 65.2% by 2031.With a rapidly expanding urban workforce, particularly in metropolitan areas, there is an increased demand for convenient, quick, and portable food options. Busy professionals, students, and young adults often seek snacks that fit into their fast-paced lifestyles, and extruded snacks are an ideal solution due to their ready-to-eat nature, long shelf life, and variety of flavors.

As disposable incomes rise and purchasing power increases, the demand for snack products, including extruded snacks, continues to grow. Also, the changing dynamics of the Indian workforce - such as longer working hours, increased commuting time, and a shift towards more fast-paced, on-the-go eating habits - further accelerates the need for convenient snack alternatives.

Extruded snacks, being lightweight and easily consumable, cater perfectly to this need, providing a quick snack during work breaks, while also offering a variety of options that appeal to different taste preferences. As the working population becomes more diverse and health-conscious, manufacturers are also introducing healthier variants, such as baked or low-calorie extruded snacks, further driving market growth. This shift in consumer behaviour is expected to continue fuelling the growth of India’s extruded snacks market.

Rapid Urbanization & Rising Disposable Income

Rapid urbanization and rising disposable income are significant drivers of the India extruded snacks market. As a part of this, according to World Bank Group, as of January 2024, India is increasingly urbanizing. By 2036, its towns and cities will house 600 million people, or 40% of the population, up from 31% in 2011, with urban regions generating over 70% of GDP.As more people migrate to urban areas in search of better job opportunities and lifestyles, the demand for convenient, ready-to-eat food products increases. Urban consumers, particularly in tier 1 and tier 2 cities, are adopting fast-paced lifestyles that prioritize convenience and time-saving solutions.

Extruded snacks, which are easy to consume on-the-go, cater perfectly to this growing need. Also, as disposable incomes rise, more consumers are willing to spend on premium and innovative snack options. With higher purchasing power, there is an increased preference for a wider range of flavors and snack varieties. This shift has led to the introduction of diverse extruded snack options, including healthier alternatives such as low-calorie, gluten-free, or protein-rich snacks. As consumers seek more personalized snack experiences, manufacturers are introducing new flavors, packaging formats, and product innovations to appeal to these tastes. Rapid urbanization has also resulted in busy, working professionals and young adults becoming the key consumer demographic for extruded snacks. This group is increasingly inclined to opt for quick, flavorful, and affordable snacks, further fuelling market growth across urban India.

Rising Popularity of Potato Extruded Snacks

The rising popularity of potato extruded snacks is a major driver in the India extruded snacks market. Potato-based snacks, particularly in the form of chips, fries, and puffed snacks, have long been a consumer favourite in India. The familiar taste, crunch, and variety of flavors offered by potato extruded snacks make them a staple snack choice for people of all age groups. In recent years, there has been a surge in the demand for innovative potato-based extruded snacks, driven by the growing preference for flavorful and convenient snacking options.

Manufacturers are introducing new potato snack variants with unique flavors like tangy, spicy, and sweet, catering to the diverse taste preferences of Indian consumers. The snack category has also seen a shift toward healthier versions, with low-fat, baked, or air-fried potato snacks gaining popularity among health-conscious consumers. Also, the increased availability of potato-based extruded snacks through modern retail channels and online platforms has contributed to their growth. As disposable incomes rise and more consumers are willing to explore premium snack options, the demand for high-quality, tasty potato-based extruded snacks continues to expand, contributing to the overall growth of the India extruded snacks market.

Key Market Challenges

Side-Effects Associated with the Excessive Consumption of Extruded Snacks

Excessive consumption of extruded snacks presents several challenges to the India extruded snacks market, particularly in terms of health concerns. While extruded snacks are highly convenient and widely popular, they are often high in sodium, fat, and artificial preservatives, which can lead to various health issues when consumed in excess. The high calorie content and low nutritional value of many extruded snacks can contribute to obesity, hypertension, and other lifestyle diseases, which are increasingly prevalent in urban India. Also, many extruded snacks are fried or processed using unhealthy oils, which increases their trans-fat content. This can lead to long-term cardiovascular problems, including heart disease and diabetes.

The excessive intake of such snacks, particularly among children and young adults, is a growing concern, as it can lead to unhealthy eating habits and nutritional imbalances. As consumers become more health-conscious, there is a rising demand for healthier, low-calorie, and minimally processed alternatives. This growing awareness of the side effects of excessive consumption may challenge the market, as consumers may begin to reduce their intake of traditional extruded snacks. Manufacturers will need to innovate by introducing healthier options, such as baked snacks or those with reduced salt, fat, and artificial ingredients, to address these concerns and sustain market growth.

Strict Government Norms

Strict government norms pose a significant challenge to the India extruded snacks market. As food safety regulations become more stringent, manufacturers must ensure their products comply with various standards related to ingredient sourcing, production processes, and labeling. In India, food safety and quality standards are governed by agencies like the Food Safety and Standards Authority of India (FSSAI), which sets guidelines on permissible levels of preservatives, additives, and artificial flavorings in snacks.For extruded snack manufacturers, complying with these norms often means reformulating products to reduce harmful additives, ensuring accurate labeling, and implementing rigorous quality control measures, which can increase production costs. Also, stringent regulations can lead to delays in product approvals and launches, as well as fines or penalties for non-compliance, impacting the business’s bottom line. Also, changing regulations, such as new packaging requirements or taxes on unhealthy foods, could further complicate operations and affect pricing strategies. As consumer awareness around food safety grows, manufacturers are under pressure to meet not only government standards but also consumer expectations for clean-label and healthier snack options. Consequently, businesses may need to invest in research and development to create products that comply with regulations while meeting consumer demands for quality and safety.

Key Market Trends

Rising Demand for Plant-Based Snacks

The rising demand for plant-based snacks is a significant trend in the India extruded snacks market. As a part of this, according to a recent study, as of 2024, more than 64% of respondents in India indicated they had ingested plant-based alternatives to animal-based foods. This percentage was highest among responders aged 25 to 34, at almost 70%. As health consciousness increases among Indian consumers, many are shifting towards plant-based diets, seeking healthier, vegetarian, and vegan snack options. This shift is partly driven by awareness of the environmental and health benefits of plant-based eating, such as lower cholesterol and reduced risks of heart disease.

In response, manufacturers are increasingly developing extruded snacks made from plant-based ingredients like lentils, chickpeas, quinoa, and vegetables. These snacks cater to the growing demand for gluten-free, high-protein, and fiber-rich alternatives, which are perceived as healthier than traditional extruded snacks made from refined grains. Also, plant-based snacks align with the preferences of consumers looking for clean-label products, free from artificial additives and preservatives. The popularity of plant-based snacks is also influenced by the rising number of vegans and vegetarians in India, as well as the growing awareness about the benefits of plant-based diets. Manufacturers are capitalizing on this trend by offering innovative flavors and packaging, making plant-based extruded snacks an attractive option for a diverse consumer base, further driving the growth of the market.

Booming E-Commerce Sector

The booming e-commerce sector is a key trend driving the growth of the India extruded snacks market. As a part of this, according to IBEF, by 2030, the Indian e-commerce market is expected to be worth USD 325 billion, reflecting tremendous development. As online shopping becomes increasingly popular, more consumers are turning to e-commerce platforms to purchase snacks for convenience and variety. E-commerce enables consumers in both urban and rural areas to access a wide range of extruded snack options that may not be readily available in local stores. This growing online presence allows manufacturers to reach a larger, more diverse consumer base, including health-conscious individuals looking for premium, organic, or niche snack varieties.

Also, e-commerce platforms provide valuable opportunities for direct-to-consumer sales, enabling brands to showcase their products more effectively and build customer loyalty. Online platforms also allow consumers to compare products, read reviews, and explore new and innovative extruded snack options, fostering greater market awareness and demand. The ease of doorstep delivery, flexible payment options, and the availability of subscription services further enhance the convenience factor for busy consumers. With increasing internet penetration and the rise of online grocery shopping, the e-commerce boom is helping expand the reach of extruded snacks, driving market growth and offering new avenues for brands to connect with consumers.

Rising Demand for Innovate Flavors & Formats

The rising demand for innovative flavors and formats is a significant trend in the India extruded snacks market. As Indian consumers become more adventurous in their taste preferences, there is a growing interest in unique, bold, and regional flavor profiles. Traditional flavors such as cheese and masala are being complemented by new and exciting options, including tangy, sweet, and spicy blends, as well as international flavors like barbecue, sour cream, and exotic spices. This flavor innovation is aimed at appealing to a diverse consumer base, including millennials and Gen Z, who seek novelty and variety in their snacks. In addition to flavor innovation, new snack formats are also gaining popularity.

Manufacturers are introducing new textures, shapes, and sizes to make extruded snacks more engaging and fun to eat. For example, snack brands are experimenting with puffs, twists, and ridged formats to offer consumers a unique snacking experience. Also, healthier formats such as baked or air-fried extruded snacks are also gaining traction, as consumers seek alternatives to traditional fried snacks. The trend towards innovative flavors and formats is helping brands differentiate themselves in a competitive market, leading to the development of premium, gourmet, and regionally inspired extruded snacks, thereby driving market growth.

Segmental Insights

Sales Channel Insights

Supermarkets/Hypermarkets dominated the India Extruded Snacks market, driven by their widespread presence and ability to offer a wide variety of products under one roof. These retail formats provide easy access to a diverse range of extruded snacks, catering to different consumer preferences in terms of flavors, packaging sizes, and price points. With the rise of organized retail and an increase in modern shopping habits, supermarkets and hypermarkets have become the preferred shopping destination for both urban and rural consumers. Their ability to stock both well-known and emerging snack brands, along with attractive promotions and discounts, further contributes to their dominance in the market.

Regional Insights

The North region dominated the India Extruded Snacks market, driven by high urbanization, rising disposable incomes, and changing consumer preferences in cities like Delhi, Chandigarh, and Jaipur. With a large, diverse population and an increasing number of working professionals, the demand for convenient, ready-to-eat snack options is particularly high. Also, the region’s modern retail infrastructure, including supermarkets and hypermarkets, supports the availability and accessibility of extruded snacks. The North’s growing preference for innovative and healthier snack varieties, along with the rise of e-commerce, has further contributed to the region’s leadership in the market.

Key Market Players

• Atop Food Products Pvt. Ltd
• Ingredion Incorporated
• Balaji Wafers Private Limited
• Bikaji Foods International Limited
• Bikanervala Foods Pvt. Ltd
• ITC Limited
• Ceeta Industries Limited
• PepsiCo, Inc.
• Shyam-G
• Ishida Co., Ltd

Report Scope:

In this report, the India Extruded Snacks Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Extruded Snacks Market, By Source:

• Potato
• Corn
• Rice
• Tapioca
• Mixed Grains
• Others

India Extruded Snacks Market, By Nature:

• Organic
• Regular

India Extruded Snacks Market, By Type:

• Sweet
• Savory

India Extruded Snacks Market, By Sales Channel:

• Supermarkets/Hypermarkets
• Convenience Stores
• Specialty Stores
• Online
• Others

India Extruded Snacks Market, By Region:

• North
• South
• East
• West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Extruded Snacks Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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