Indian snacks market is set to nearly double in size, from Rs 42,694.9 crore in 2023 to Rs 95,521.8 crore by 2032
Mukesh Ambani-led Reliance Industries’ consumer products arm has acquired Bengaluru-based SIL Food India, a packaged foods brand famous for products like jams and Chinese sauces. Reliance Consumer Products’ (RCPL) move is in alignment with its commitment to build businesses that focus on preserving the “culinary heritage” of the country, the company said in a statement on Tuesday.
“Reliance Consumer Products is focused on building a business for the future while preserving the rich cultural and culinary heritage of India,” said Ketan Mody, COO of Reliance Consumer Products, according to a company’s statement.
Reliance’s expansion in the packaged foods segment comes at a time when the Indian packaged food sector, including the dairy and snacks market, is expected to rapidly grow from $2.8 billion in 2023 to $6.4 billion by 2029, according to Statista’s report. The study has cited changing consumer preferences and increasing demand for convenient, ready-to-eat food options as the drivers of the growth.
A report by International Market Analysis Research and Consulting Group (IMARC) also highlighted the growth prospects of the Indian snack market, which is set to nearly double in size, from Rs 42,694.9 crore in 2023 to Rs 95,521.8 crore by 2032. It stated increasing urbanisation coupled with soaring disposable incomes and changing lifestyles are factors behind the projected growth.
“Increasing urbanisation, along with rising disposable incomes and changing lifestyles, are driving the growth of the market,” the IMARC report said. “The rising popularity of convenient food products, increasing implementation of quality standards by the FSSAI, and increasing number of e-commerce brands and distribution channels represent some of the key factors driving the market,” the report added.
Reliance isn’t the only Indian giant taking strides to benefit from the expected snacks market growth in the coming decade. Recently, Tata Consumer Products announced a joint venture with American giant PepsiCo to manufacture and sell packaged snack Ching’s Schezwan Chutney flavoured Kurkure.
Wadia Group-owned Britannia Industries was holding talks to buy a majority stake in Assam-based regional company, Kishlay Foods for manufacturing both western and traditional snacks, including biscuits, sweets, potato chips and noodles, the Economic times earlier reported. If the Group seals the deal, it will help Britannia to strengthen its hold in the Northeast region market.
Indian ethnic snacks giant Bikaji Foods International (BFIL) had acquired a 55 per cent stake via a share subscription agreement with snacks manufacturer Ariba Foods to expand its frozen snacks and sweets business.
“...acquisition is a part of overall strategy to develop and expand Frozen snacks and sweets business of BFIL both in India and globally,” said the BFIL on stock exchanges in September 2024.
Not just Indian giants, but American major PepsiCo is also eyeing to expand in India in the snacks segment.
“We continue to see a lot of growth in many parts of our AMESA region, in particular, India is a big growth space for us, and it is an investment area for sure...The opportunity is massive if you take a decade perspective,” said PepsiCo chairman and CEO, Ramon Laguarta, during an investor’s call last year.
Reportedly, the American snacks’ maker is also one of the bidders to acquire a minority stake in the Indian snacks’ giant Haldiram.