Snack Attack: Are Better-for-You Options the New 'Munch' in Town?

The Indian consumer is evolving: the confluence of increasing awareness about nutrition, changing lifestyles and a rising demand for convenience has propelled the rapid growth of a new market segment, namely better-for-you snacks. As the name suggests, this segment comprises snacks that pack a nutritional punch without forgoing the convenience associated with their ‘unhealthy’ predecessors. And this combination is more than whetting consumers’ appetites—data from a recent report published by Grand View Research reveals that the global better-for-you snacks market size was estimated at USD 47.04 billion in 2023, and is expected to grow at a CAGR of 7.6 per cent from 2024 to 2030. The report also cites contemporary dietary preferences and growing environmental awareness as additional growth drivers. So, is better-for-you really better for business?

Goodness at all costs
The healthy snacks market is primarily focused on foods that meet two essential criteria: they replace or significantly reduce ‘unhealthy’ ingredients such as palm oil, refined flour and white sugar with their healthier counterparts such as groundnut or olive oil, millet flour and natural sweeteners such as coconut sugar and honey. They are also free from added preservatives and artificial colours and flavours. This category has also benefitted from the clean label movement, which promotes transparent ingredient lists, and simple but effective recipes. Many consumers are also awakening to the environmental implications of their consumption habits and are willing to pay a small premium for foods that are locally and sustainably produced and packaged. One of the obvious outcomes of the strength of this segment is the near-ubiquitous popularity of makhanas as a snack. The infusion of bold flavours and portion-managed packaging is further shoring up demand, despite the slightly higher price tags of these better-for-you products.


Simple and accessible
Today, India ranks second in the Asia-Pacific region in terms of the growth of the domestic snacking market, as per a NielsenIQ report. The report went on to find that one out of every five snacks carries a health-related connotation and that the push is as strong in rural areas and smaller towns as in major metros. Snacks that perform the best tend to be the simplest, with ingredients that consumers recognise. Similarly, traditional and beloved foods that are reimagined with smart ingredient swaps fulfil the dual role of nostalgia and nutritional gains. With most consumers tending to reach for these foods while on the go, accessibility can be a gamechanger for Indian brands—the widespread availability of these products via multiple physical and virtual storefronts makes them a natural choice for pressed-for-time Indian buyers.

With the better-for-you snacking movement showing no signs of slowing down, established brands and startups are making strides towards establishing their presence in this domain. Brands that have complete visibility over the entire supply chain, focus keenly on procuring high quality ingredients at the source and are committed to innovation will ride the crest of this wave of change.
-With inputs from Prateek Bhagchandka, Co-founder and CEO of MOM-Meal of the Moment