If you are reading this copy while munching on a packet of protein-rich baked chips, don’t be surprised; we are doing the same. The country’s savoury snacks market is valued at Rs 89,000 crore in FY25 and is projected to grow to Rs 1.25 trillion by FY29 at a CAGR of 9%.
To add to this, the momentum is part of a wider transformation in food consumption, with India’s food and food processing sector expected to reach Rs 109.6 trillion by FY27, up from Rs 86.8 trillion in FY24, as per Motilal Oswal’s ‘Bites of growth: India’s packaged food uprising!’ report.
What is changing is not what we are eating or how; the main story is from whom.
From loose namkeen to branded packs
Traditionally, snacking in India has been dominated by unorganised players, especially in the ethnic snacking category, such as bhujia, sev and gathiya. You might get these easily from vendors on carts and big shops with sacks of these snacks kept at counters. As per the report, that is now shifting. While biscuits are already a highly organised category, with nearly 95% market formalisation, savoury snacks remain only 58% organised. This gap is becoming the industry’s biggest growth lever.
Post-pandemic consumer behaviour has tilted decisively towards packaged, hygienic and branded foods. According to the Motilal Oswal analysis, organised savoury snacks have consistently outpaced the unorganised segment over the past decade and are expected to grow at around 10% annually through FY29, compared with under 7% for unorganised players. The result is a steady transfer of market share from local vendors to national and regional brands.
Urban lives, smaller families, faster meals
A major reinforcement for this transition is the structural lifestyle shift. India’s urban population is expected to reach around 613 million, accounting for about 41% of the total population, by 2030. Urbanisation, nuclear families and the rise of dual-income households have all reduced the time available for home cooking, making ready-to-eat and on-the-go snacks a default choice rather than an indulgence.
Rising disposable incomes and greater digital exposure are also reshaping food preferences. Packaged foods are increasingly viewed as lifestyle products, not just staples, pushing consumers towards branded options that offer consistency, longer shelf life and predictable quality, the report added.
Health moves from niche to mainstream
Another powerful shift is what industry executives describe as the ‘healthification’ of snacking. Demand is rising for baked namkeens, millet-based snacks, low-oil formats and clean-label products, driven by heightened awareness around hygiene and nutrition after Covid-19.
Packaged snacks, with controlled processing and transparent labelling, are benefiting from this perception shift. The report notes growing traction for protein-rich options and healthier ethnic snacks, particularly among younger urban consumers. Importantly, this trend is not replacing traditional flavours but repackaging them in formats that feel safer and more modern.
Quick commerce changes the shelf
Distribution is another accelerant. Quick-commerce platforms such as Blinkit, Zepto and Instamart have turned snacks into impulse buys delivered in minutes. Packaged food now accounts for roughly 45–50% of total sales on these platforms, according to the report.
For brands, this has shortened the distance between product discovery and consumption, while also enabling sharper targeting, smaller pack sizes and experimentation with new SKUs.
Scale is the biggest advantage
Large organised players are best placed to exploit these shifts. Distribution depth remains a critical moat. Haldiram, the market leader, reaches nearly 50% of India’s retail outlets. Bikaji Foods is rapidly expanding its direct distribution network and aims to reach 500,000 outlets over the next three years. Prataap Snacks, despite recent underperformance, still operates the widest distribution network among listed peers, with access to about 2.5 million outlets.
Operational efficiency is emerging as another differentiator. Gopal Snacks has kept transportation costs below 3% of sales, well under the industry average, by relying on an owned fleet and in-house production of key raw materials such as besan and spices. Prataap Snacks, meanwhile, is consolidating seven low-automation plants into a single automated facility in Indore, a move expected to improve margins by 150–200 basis points, the report added.
Beyond snacks, beyond India
Diversification is also shaping growth strategies. Bikaji has adopted a ‘house of brands’ approach, taking stakes in premium sweets and frozen foods to expand consumption occasions. Meanwhile, Mrs Bectors Food Specialities has leveraged automation and quality controls to become India’s largest biscuit exporter, shipping to more than 70 countries.
For large companies, the opportunity lies in formalising the habits that already exist among consumers. With consumers increasingly becoming comfortable paying for convenience, hygiene and health, India’s snack aisle is becoming a lucrative space in the food economy.
Motilal Oswal’s top bets in snacking industry
As part of the report, the brokerage initiated coverage on three pure-play snack companies, Bikaji Foods International, Gopal Snacks and Prataap Snacks, with a ‘Buy’ rating on all three, citing distribution expansion, automation-led cost efficiencies and turnaround potential.
Bikaji has a target price of Rs 900, implying 22% upside from current levels. The target price for Gopal Snacks is Rs 400, indicating 25% upside and for Prataap Snacks, they expect 25%, with a target of Rs 1,500.
Mrs Bectors Food Specialities, while included among the direct snacking plays, carries a ‘Neutral’ rating with a target price of Rs 280.