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MUMBAI: Call it consumption fatigue, price pinch, or a lack of new choices, demand for snacks remained static in FY25. Not all households necessarily cut back on spending on biscuits, noodles, or namkeen, but they did not buy more of them either, data sourced from market research firm Kantar showed.Some may have even purchased a lesser quantity of snacks than usual. Some analysts attributed this to a “market correction” following a Covid-led spike in snacking, while companies said that high inflation also played a spoilsport.“Consumption itself would grow based on either shoppers buying more frequently or buying more on every occasion of purchase. After constantly increasing the annual shopping trip for snacking products since the pandemic, for the first time this year (FY25), the shopping trips did not grow,” analysts at Kantar told TOI.
Munching loses punch in FY25
12.8kg Snacls:Consumption of snacks has been static at around 12.8kg per household in FY25. Categories like noodles (2kg) and biscuits (7.2kg) have, in fact, lost some consumption, indicating that there is some “cutting back on the quantity being purchased”, the firm, which captured household consumption of biscuits, noodles, pasta, macaroni, vermicelli, chocolates, cookies, and savoury snacks, said. Consequently, snacking as a category saw a slowdown in growth led by biscuits, which saw a 1% volume growth in FY25 compared to 10% in FY24.Volume growth of savoury snacks declined to 7% from 11% during the period. Biscuits account for about 56% of snacking volumes. The snacking segment as a whole saw a deceleration in volume growth to 4% in FY25 from 9% in FY24.Edible oil prices:High commodity inflation, particularly in edible oil — a key ingredient used in biscuits and snacks — translated into grammage reduction in smaller packs, pushing consumers to purchase fewer packs of products like biscuits, said Mayank Shah, VP at Parle Products. In the snacks category, 80% of volumes come from small packs, Shah said. “There has been a 40-45% rise in edible oil prices since last year after govt increased import duty on edible oils,” Shah said, adding that the tax benefits should spur consumption going ahead.“We don’t expect edible oil prices to go further up from here, but even at this level, prices are high,” he said.Local brands:A section of consumers also seems to have moved to smaller or local brands to save on costs. A snacking report released by Mondelez (survey conducted in Oct 2024) indicated that a higher percentage of consumers bought smaller numbers of snacks than normal and also shifted to “off-brand versions” due to the price difference over the past 12 months, driven by economic pressures. “Consumer snacking habits are shifting, with consumers adjusting their behaviour over the past years — opting for mindful choices, smaller portions, and diverse experiences.Despite economic pressures, 86% still see snacking as a daily boost, choosing smarter ways to save — like using coupons or buying in bulk — rather than cutting back. For Mondelez, this highlights the need for flexible pack sizes, pricing, and innovations that deliver quality and trust,” said Nitin Saini, VP (marketing) at Mondelez India.K Ramakrishnan, MD, south Asia, Worldpanel Division at Kantar, described the flat growth in the consumption of snacks as an “expected slowdown”, given the rapid growth the sector saw since the pandemic. Manufacturers will have to provide some incentives to spur the consumption of snacks.There was some slowdown witnessed in the snacks category, but it was the least impacted across food categories, said Manoj Verma, COO at Bikaji Foods International.
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