Savory Snacks in India October 2019: Marketline Industry Profile
Savory Snacks in India October 2019: Marketline Industry Profile
Savory Snacks in India October 2019: Marketline Industry Profile
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Industry Profiles
1. Executive Summary
Industry Profiles
High operating and exit costs drive up rivalry in this market, although the larger players also tend to be fairly well
diversified, alleviating this pressure somewhat. Moreover, strong growth of the Indian savory snacks market during
the review period decreased rivalry to an extent.
Industry Profiles
TABLE OF CONTENTS
1. Executive Summary 2
2. Market Overview 8
3. Market Data 9
4. Market Segmentation 11
5. Market Outlook 14
Industry Profiles
7. Competitive Landscape 20
7.2. Who are the leading players in the Indian savory snacks market? ............................................21
7.3. Which companies have been most successful in increasing their market shares between 2014 and
2018? 21
7.4. Which companies’ market shares have suffered over the same period? ...................................21
7.5. What are the most popular brands in the market? .....................................................................21
8. Company Profiles 22
9. Macroeconomic Indicators 24
Appendix 26
Methodology............................................................................................................................................ 26
Industry Profiles
LIST OF TABLES
Table 1: India savory snacks market value: $ million, 2014–18 9
Table 7: India savory snacks market volume forecast: million units, 2018–23 15
Industry Profiles
LIST OF FIGURES
Figure 1: India savory snacks market value: $ million, 2014–18 9
Figure 3: India savory snacks market category segmentation: % share, by value, 2018 11
Figure 4: India savory snacks market geography segmentation: % share, by value, 2018 12
Figure 7: India savory snacks market volume forecast: million units, 2018–23 15
Figure 8: Forces driving competition in the savory snacks market in India, 2018 16
Figure 9: Drivers of buyer power in the savory snacks market in India, 2018 17
Figure 10: Drivers of supplier power in the savory snacks market in India, 2018 18
Figure 11: Drivers of degree of rivalry in the savory snacks market in India, 2018 19
Figure 12: India savory snacks market share: % share, by value, 2018 20
Industry Profiles
2. Market Overview
Industry Profiles
3. Market Data
Industry Profiles
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4. Market Segmentation
Category 2018 %
Ethnic/traditional Snacks 4,237.9 57.6%
Potato Chips 1,624.5 22.1%
Processed Snacks 962.8 13.1%
Nuts And Seeds 423.4 5.8%
Popcorn 105.3 1.4%
Figure 3: India savory snacks market category segmentation: % share, by value, 2018
Industry Profiles
Geography 2018 %
China 28,380.8 54.0
Japan 8,930.4 17.0
India 7,354.0 14.0
South Korea 997.4 1.9
Singapore 108.4 0.2
Rest Of Asia-pacific 6,829.8 13.0
Figure 4: India savory snacks market geography segmentation: % share, by value, 2018
Industry Profiles
Channel % Share
Convenience Stores 58.8%
Hypermarkets & Supermarkets 21.1%
Food & Drinks Specialists 13.7%
Variety & General Merchandise Retailers 0.8%
Other 5.6%
Total 100%
Industry Profiles
5. Market Outlook
Industry Profiles
Table 7: India savory snacks market volume forecast: million units, 2018–23
Figure 7: India savory snacks market volume forecast: million units, 2018–23
Industry Profiles
6.1. Summary
Figure 8: Forces driving competition in the savory snacks market in India, 2018
High operating and exit costs drive up rivalry in this market, although the larger players also tend to be fairly well
diversified, alleviating this pressure somewhat. Moreover, strong growth of the Indian savory snacks market during
the review period decreased rivalry to an extent.
Suppliers in the savory snacks market range from agricultural producers to machinery manufacturers, and vary in size
accordingly. Market players can integrate backwards, but farmers also integrate forwards relatively frequently,
nullifying the resultant downward pressure on supplier power.
For new entrants, the existence of large, well-established incumbents presents a significant barrier to entry, although
it is increasingly possible to enter the market on a smaller scale with a more 'artisan' product. The primary reasons for
consumers to choose a snack are enjoyment, indulgence, and convenience. Recent innovation in sweets and snacks
has focused on creating permissible indulgence. Producers are aiming to differentiate by using natural, healthy and
sustainably sourced ingredients.
Products in this market face a strong threat of substitution by other snack foods, confectionery and beverages, largely
because switching costs for buyers tend to be low, and retailers are heavily influenced by end consumer demand.
Despite the significant size of the retailers, buyer power is however limited, as strong branding influences consumer
purchase decisions and retailers must follow consumer demand while stocking their shelves.
Industry Profiles
In contrast to many countries, the major buyers in the Indian savory snacks market are not supermarket chains, but
convenience stores, which account for 58.8% of the total distribution in 2018. This creates a more fragmented
marketplace, wherein a large number of small buyers wield scant financial muscle, and can marshal only limited
bargaining power when it comes to negotiating with market players. Losing a buyer of this sort is likely to have little
impact on a market player's revenues. All of this undermines buyer power.
Hypermarkets and supermarkets still constitute a significant distribution channel, with 21.1% of the total savory
snacks market value in 2018. Chains such as these usually occupy a fairly strong bargaining position due to their large
financial reserves and broad distribution networks. By comparison to independent retailers, losing the custom of a
supermarket chain can have a very significant impact on the fate of a market player. This increases buyer power.
Furthermore, savory snack products usually constitute just one of a wide range of items sold by most food retailers.
This reduces the importance of this product to buyers, increasing buyer power.
On the other hand, end consumers are highly influenced by branding in this market, and retailers are compelled to
stock the brands most popular with their customers. Strong branding therefore weakens buyer power in this market.
Overall, buyer power is assessed to be moderate.
Industry Profiles
Suppliers in the savory snacks market include agricultural commodity traders, agricultural producers, and
manufacturers of ingredients, packaging, and factory automation equipment.
Market players generally buy perishable raw materials, such as potatoes, direct from the growers, which are often
relatively small businesses that rely on market players for a large proportion of their revenues. This results in weaker
supplier power. However, vegetable oils and grains such as maize are more commonly provided by commodity traders
and these are often large multinationals and wield substantial negotiating power, resulting in a corresponding
increase in supplier power.
While market players rarely integrate backwards into farming, some have already become active in commodity
trading; a trend that weakens supplier power. Similarly, many market players manufacture ingredients, such as
flavorings. Conversely, some farmers integrate forward, particularly with artisanal products.
While consumer preferences must be catered for, players can mitigate the impact of changing raw material prices by
diversifying their product mix - for example, producing both potato chips and corn chips.
Leading players must maintain product quality if they are to maintain their brand equity in the long term. Moreover,
their need to source raw materials of appropriate quality, tend to strengthen those suppliers who are able to provide
the necessary products. However, lack of differentiation in commodity inputs weakens supplier power.
Overall, supplier power is assessed to be moderate.
Industry Profiles
Leading competitors in this market generally tend to be large, often multi-national and diversified corporations. The
top four leading companies, PepsiCo, Haldirams, Bikaji Foods International Ltd. and Balaji Foods, constituted 29.2% of
market value in 2018. Notably, PepsiCo and Haldirams together managed to secure 37.4% of the total market value in
2018. These large companies dominate, but the market remains relatively fragmented.
Artisanal companies do exist and often operate in a market niche, offering products such as hand-cooked root
vegetable chips, although it should be noted these companies are often subject to acquisition by their larger
competitors, if they successfully establish themselves. This environment tends to foster an increased sense of rivalry.
Moreover, market players' similarity, the relative ease with which they can increase output, high operating and exit
costs due to the specialized nature of manufacturing equipment, and low switching costs for buyers, all exacerbate
rivalry further.
On the other hand, rivalry is toughened by the diversified nature of the larger businesses in the savory snacks market.
These companies are often deal in substitutes such as confectionery, and operate in a number of different
geographies. For example, PepsiCo sells a variety of food and beverage products and sells its products all around the
world. It should be noted that the benefits of this diversification are not often shared by the market's smaller players.
Very strong market growth during the review period tends to ease the competition to some extent. Overall, rivalry in
this market is assessed as moderate.
Industry Profiles
7. Competitive Landscape
The Indian savory snacks market has experienced strong value growth and volume growth in recent years. PepsiCo is
the leading player in the sector in value terms and also gained maximum value share during 2014-2018. Furthermore,
Haldirams and Bikaji Foods International Ltd. also have strong presence in the country, accounting for second and
third largest value shares respectively, in 2018.
Company % Share
Pepsico 9.9%
Haldirams 9.8%
Bikaji Foods International Ltd. 5.3%
Balaji Foods 4.2%
Other 70.8%
Total 100%
Figure 12: India savory snacks market share: % share, by value, 2018
Industry Profiles
7.2. Who are the leading players in the Indian savory snacks
market?
US based multinational PepsiCo is the leading player in the Indian savory snacks market, accounting for 9.9% of the
market value in 2018 and is expected to retain its lead position in the coming years. The company has a strong
foothold in processed snacks and potato chips segments, accounting for 29.7% and 23% value shares, respectively, in
2018.
India based multinational Haldirams is the second leading player in the Indian savory snacks market, accounting for
9.8% of the market value in 2018. The company has a strong foothold in the ethnic/traditional snacks and nuts and
seeds segments, accounting for 14.2% and 14% value shares, respectively, in 2018.
India based Bikaji Foods International Ltd. is the third leading player in the Indian savory snacks market, accounting for
5.3% of the market value in 2018. The company has a strong foothold in the ethnic/traditional snacks segment,
accounting for 9.2% value share, in 2018.
7.4. Which companies’ market shares have suffered over the same
period?
In the Indian savory snacks market, ConAgra Brands Inc witnessed loss of value share in the last four years, falling 0.02
percentage points, down from 0.31% in 2014 to 0.29% in 2018. Jay Chikki & Snacks Pvt. Ltd also witnessed loss of
value market share by 0.01 percentage points, down from 0.37% in 2014 to 0.36% in 2018.
Industry Profiles
8. Company Profiles
PepsiCo India Holdings Pvt Ltd (PepsiCo) a subsidiary of PepsiCo Inc, is a manufacturer and distributor of food
products and non-alcoholic beverages. The company’s products comprise carbonates, canned fruit juices, juice, sports
drinks, fruit powders, and nectars. It provides salty snacks, bottled water, breakfast cereal, oats, potato chips and
roasted snacks. PepsiCo markets its food products under Lehar Namkeen, Kurkure, Quaker Oats, Lay’s, Uncle Chips,
and Aliva brands. The company markets its beverages under Pepsi-Cola, Gatorade, 7Up, Mountain Dew, Slice,
Tropicana, Nimbooz, Mirinda, and Aquafina brands. It retails products in different parts of India and exports to
different parts of the world. PepsiCo is headquartered in Gurgaon, Haryana, India.
Level 3-6Pioneer Square, Sector 62, Near Golf Course Extension Road, Gurgaon,
Head office:
Haryana, India
Website: www.pepsicoindia.co.in
Financial year-end: April
Industry Profiles
Industry Profiles
9. Macroeconomic Indicators
Industry Profiles
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Appendix
Methodology
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Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
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provide the foundation for all related industry profiles
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profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
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each definition are carefully reviewed at the start of the research process to ensure they match the requirements of
both the market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data
to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which
can then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
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