The Indian food and grocery market is dominated by snacks such as potato chips which account for 85% of the snacks market. Major players include Frito-Lay, ITC, Haldiram, and Parle who have a range of chip and snack brands. ITC recently launched its Bingo snacks brand and is aiming to grab 50% market share. The snacks market is growing at 25% annually and while the overall market is worth Rs. 100 billion, the branded snacks segment is Rs. 5,000-5,500 crore and growing at an even faster rate. Key strengths of the Indian market include raw material availability and vast domestic market size.

1. Food & Beverages

2. Key Players

3. Category share in packaged food
TPK

4. Indian Food & Grocery Market Outlook

5. Indian Food & Grocery Market

6. Snacks

7. Packaging

8. Packaging

9. Packaging

10. Display Stand

11. ITC’s endeavor on snacks segment
• ITC claims that it has done its homework well and spent close
to two years for developing Bingo.
• The entry was prompted by the fact that there are few players
in this segment. “We found that there was only one organised
large player at the national level in the packed snacks
segment apart from some regional players.
• There is a big opportunity for us,” says an ITC executive. He
adds quickly that the market for the packed-snack-on-the-go
segment in India is around Rs 2,000 crore and ITC is looking at
grabbing a 50 per cent share of the market at the earliest.
• “We are offering a wide range to ensure that the consumer is
not restricted to a monotonous taste”.

12. ITC’s endeavor on snacks segment
• The action is also visible at retail points. Small retailers, almost
all of whom also sell ITC cigarettes, claimed they had been
promised a premium if Bingo display was better.
• With its sole objective of deep distribution, ITC introduced
mega-size wafer trolleys outside most mom-and-pop outlets.
• Lay’s, the top selling brand reacted with its own version of
trolleys parked next to Bingo’s display. Of course there were
some places where ITC Bingo blocked out its competition.
• Across the country, Bingo has laid claim to the large format
outlets by tying-up with big retailers like Future Group’s Food
Bazaar.

13. Wafer Snacks market
• Wafer snacks market size – about Rs. 6500 Cr
• Growth rate – 25% annual
• Branded market size – Rs. 2000 cr.
• Major players – Frito-Lay’s, Bingo, Haldiram, Parle
• Potato based chips and snacks account for 85% of total
snacks market
• Market share (Nielsen) – Frito Lays -45%, Haldiram -27%,
Bingo -16%
• Rest is divided among other niche and regional players –
Parle, Balaji, Gopal ji, etc

14. Current Indian Players
Frito Lay’s ITC Haldiram Parle Agro Parle Products
• Lay’s • Bingo • Haldiram • Hippo • Parle
• Kurkure wafers
• Uncle • Smart
Chips Chips
• Lehar
Namkeen
• Cheeto’s

15. Product need

16. • Snack food generally comprises bakery products, ready-to-eat
mixes, chips, namkeen and other light processed foods. The
snack food industry is worth Rs 100 billion in value and over
4,00,000 tonnes in terms of volume.
• Though very large and diverse, the snacks industry is
dominated by the unorganized sector with almost 1,000 snack
items and 300 types of savouries are sold across India. The
branded snacks are sold at least 25% higher than the
unbranded products. The variety is almost mind-boggling with
specialties from all regions, which have gained national
acceptance.

17. • The industry has been growing around 10% for the last three
years, while the branded segment is growing around 25% per
annum to stand at Rs 5,000-Rs 5,500 crore, due to various
reasons like Multiplex culture, snacking at home while
watching TV, pubs and bars (where they are served free). AC
Nielsen’s retail audit shows that the large sales volumes are
due to a marked preference for ethnic foods, regional bias
towards indigenous snacks and good value-for-money
perception. Of course the branded segment is much smaller
at Rs 2,200 crore, which is what makes it so attractive to food
companies that are looking at bigger shares. Frito lay
commands a share of 45%, followed by Haldiram’s at 27% and
ITC at 16%. The rest is divided between a handful of new
entrants, wannabes and many regional players.

18. • Of the wide range of snacks available, potato chips
constitute a sizeable segment of the Indian snack
food industry, according to India Infoline.
• Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lay’s
story is an example of how American recipes were
adjusted to satisfy local tastes. Procter & Gamble’s
Pringles brand of potato crisp, unlike many other
potato based Indian snack foods that are fried. P&G
currently imports the Pringles product and therefore
the product has been priced at a premium and is
marketed to a micro-niche.

19. Strengths
• Abundant availability of raw material
• Vast network of manufacturing facilities all
over the country.
• Vast domestic market
• Urbanization

20. Opportunities
• Rising income levels and changing consumption
patterns
• Favourable demographic profile and changing
lifestyles
• Integration of development in contemporary
technologies such as electronics, material science,
bio-technology etc. offer vast scope for rapid
improvement and progress.