Snacking biz sweetens deal with premium, fusion and healthy offerings this Diwali

India loves to snack and even more so during the festive period and brands are well aware of this. From ‘Amitji loves Bikaji’ or Zepto’s soan papdi as its Chief Comeback Officer , snacking companies are pulling out all stops to dish out appetising marketing campaigns for the season. They intend to make the most of the period by marketing and advertising heavily via products and promotions.

The Indian snacks industry is expected to increase at a strong compound annual growth rate (CAGR) of 9.08% from its 2023 valuation of Rs 42,694.9 crore to its 2032 valuation of Rs 95,521.8 crore, according to a new analysis by IMARC Group.

Industry experts suggest this year, the snacking industry is poised to benefit from changing consumer preferences, a shift towards premiumisation, and innovative product offerings, making it one of the most exciting sectors during the festive period.

Marketing platter for the festive quarter

Bikano will be increasing its investment in digital advertising across social media platforms, influencer collaborations, and targeted online campaigns to connect with younger audiences. Additionally, they will focus on engaging content that highlights the festive spirit and the variety of product offerings.

Alongside this, they will continue to invest in traditional media channels like radio, and print to reach a wider demographic, ensuring a strong presence across different regions. In-store promotions, product sampling, and strategic partnerships with retail outlets will also play a key role in Bikano’s plan, allowing them to directly connect with consumers.

Kush Agarwal, Head of Marketing, Bikano, said, “At Bikano, our marketing strategy for the festive season is focused on creating high-impact campaigns that resonate with our customers during this special time. Our plan includes a balanced mix of traditional and digital marketing efforts to ensure a broad reach and effective engagement.”

Neha Rao, VP-Marketing of Bikaji added, “The consumption becomes high and hence the demand goes up. For competition brands like chocolates and all, they do a much more aggressive focus on Valentine's but for us, it's primarily this festive season. So sweets and snacks are the ones that get focused upon in these quarters especially because there's a lot more movement in that space.”

Turkish Hazelnut, which recently partnered with Haldiram’s for fusion mithais this festive season will have a 360-degree campaign. Manshi Ahuja, India representative for Turkish Hazelnut, plans to reach out to trade consumers, do PR and social media activities, tie up with retail, do sampling programs, chef demonstrations, and work with nutritionists to talk about health awareness and the health benefits of Turkish Hazelnuts.

Strategy to sweeten profits

To capture a larger share during the festive season, Bikano is focusing on a multi-pronged strategy designed to meet diverse consumer needs and elevate the brand's visibility. Agarwal explained, “We are expanding our product range with new offerings, such as a variety of besan-based snacks like Loung Sev, Ratlami Sev, and Bhavnagri Ganthiya, which tap into the increasing demand for traditional, authentic Indian flavours.”

Moreover, they are emphasising our popular gift pack range, including Shahi Nazrana, Abhinandan, and Festive Feast, along with sweets like Royal Gulab Jamun, Kaju Burfi, and Soan Papdi. These gift packs, known for their high-quality offerings and festive packaging, make ideal gifting options, which will drive substantial sales, as per the brand.

“By offering a wide array of products that resonate with the festive spirit and enhancing our marketing efforts, we are confident that these initiatives will help us secure a larger market share this festive season,” he added.

Top snacking industry consumer trends

As consumers increasingly seek healthier and premium options, the snacking industry has responded with innovations that cater to both indulgence and wellness. There has been a notable shift toward premium snacks, with brands introducing gourmet options, healthier ingredients, and artisanal flavours. Premiumisation is not only limited to taste but also packaging, as brands aim to create aesthetically pleasing products that make for ideal festive gifts.

Agarwal agreed to this and further mentioned that as disposable incomes rise, there's a noticeable trend toward premiumization, with consumers showing an increasing preference for high-quality, gourmet snacks made with top-tier ingredients. These premium snacks, often packaged attractively and marketed as luxurious treats, have become a popular choice for gifting, especially during special occasions.

Other than premiumisation, Rao of Bikaji notices the major shift to be in consumption quantity. She said, “In comparison to earlier, the per-person consumption has gone down a little. Somebody could have a bowl of bhujia, but people have become a little conscious now.”

Healthy topics have been up and about everywhere. But ideally, nothing is 100% healthy, it's always about healthier food choices, according to the executive.

Agarwal added to this that, “Health-consciousness among consumers is driving demand for nutritious snacks. More people are seeking options that align with their focus on wellness, such as protein-fortified products, snacks free from additives, and those made with natural ingredients like whole grains, nuts, and seeds. While traditional flavours remain popular, there is a clear shift towards healthier and more mindful snacking choices.”

Another trend shaping the industry is the blending of traditional Indian flavours with global influences. Snack manufacturers are innovating by incorporating exotic ingredients from around the world into familiar local snacks, creating unique flavour profiles that cater to consumers' evolving tastes. This fusion of flavours is capturing the interest of those seeking novelty alongside the comfort of traditional Indian tastes.

Ahuja shared post COVID things have really changed. The Indian consumer is very health conscious of what they are buying or what they are gifting and they see the labels.

“They are very particular about what they are having and giving to their family. Especially fast food and the trend of traditional Indian snacks and sweets is gradually phasing out. So why not in those traditional things add a little health to it,” she said

Channel of consumer reach out

Quick commerce focuses on speed, catering to last-minute shoppers who value convenience and fast delivery, making it ideal for urgent purchases like snacks, sweets, and small gift items.

According to Agarwal it capitalises on the demand for instant gratification and is often able to command a premium for rapid delivery services. On the other hand, traditional online channels, such as large e-commerce platforms, are preferred for planned purchases. They offer a wide range of gifting options, exclusive festive discounts, and the ability to buy in bulk, making them a go-to for consumers who plan their festive shopping and value the convenience of home delivery.

Meanwhile, retail sales continue to play a vital role by providing an immersive shopping experience that online platforms cannot replicate.

“Many consumers still prefer visiting stores during the festive season for the chance to see and feel products, enjoy in-store promotions, and experience the festive atmosphere. Together, these channels offer brands a balanced approach to reaching different consumer segments, allowing them to maximise their market presence and capture a larger share of the festive demand,” explained Agarwal.

Rao further stressed upon the importance of being heavy on TV. Their audience is such that they ought to be heavy on TV.

“Digital is coming up in a big way for us. But for companies like us, it's always going to be general trade followed by modern trade, followed by e-commerce,” she said.