The snacking sector has entered a notable downturn, marking the first decline in demand since the onset of the COVID-19 pandemic. According to data from Kantar, snack consumption across households has stagnated at about 12.8 kilograms in fiscal year 2025. This figure indicates a shift in consumer behaviour primarily driven by rising prices and a scarcity of innovative product offerings. Analysts suggest that this stagnation is a market correction following a significant upsurge in snacking habits during lockdowns, further impacted by soaring inflation that has squeezed consumer spending.

In FY25, consumption levels of certain snack categories, notably noodles and biscuits, have fallen, signalling a notable reduction in consumer purchases. Kantar's insights reveal that the growth of biscuits—which represent roughly 56% of the snacking market—has decelerated to just 1%, a stark contrast to the 10% growth seen in the previous year. Similarly, savoury snacks experienced a drop from 11% to 7%. Overall, the volume growth in the snacking segment plummeted to 4% in FY25, compared to 9% in FY24.

The dramatic rise in commodity prices, particularly for edible oils, has further complicated the landscape for snack manufacturers. Such oils are key ingredients in many snack products, and Mayank Shah, Vice President at Parle Products, highlighted that the costs of edible oils have surged by 40-45% since the previous year, following increases in import duties. This spike in ingredient prices has prompted companies to introduce smaller pack sizes, directly affecting consumer purchasing behaviours. Shah expressed cautious hope that upcoming tax benefits might stimulate demand in the future, although the current pricing landscape remains challenging for many.

Consumer preferences are also evolving, as evidenced by recent surveys indicating a trend towards purchasing smaller or local brands to manage budgets. A report by Mondelez noted that a significant portion of consumers is opting for off-brand alternatives to save costs. Despite these economic pressures, a resilient 86% of consumers still view snacking as an important part of their daily routine, often resorting to coupons or bulk buying strategies as a means of maintaining consumption rather than curtailing it entirely. Nitin Saini, Vice President of Marketing at Mondelez India, underscored the importance of flexible packaging and pricing strategies to adapt to these changing demands for quality and affordability.

Looking ahead, Kantar’s K Ramakrishnan expressed that the flat growth rate in snack consumption aligns with expectations following the rapid expansion witnessed during the pandemic. Manufacturers may need to consider incentives to rejuvenate consumer interest. Although the snacking segment is experiencing a slowdown, it remains comparatively resilient within the wider food market. Manoj Verma, COO at Bikaji Foods International, remarked that adapting to shifting consumer behaviours and economic conditions will be crucial for fostering growth in an increasingly competitive and challenging market.

This challenging environment is not confined to a single country or region. Reports indicate similar trends globally, with major players in the packaged food industry, such as General Mills and Kraft Heinz, acknowledging a decrease in snack sales attributed to prolonged inflation and shifting consumer preferences towards healthier options. In a broader context, PepsiCo has also noted a revenue dip, prompting strategic shifts towards promotional efforts and budget-friendly product lines.

As various companies respond to these prevalent trends, the sustained growth of the snacking sector may hinge on innovative adaptations to pricing, product range, and consumer outreach strategies. The industry’s ability to navigate these turbulent times will ultimately determine its trajectory in the near future.