Rising health-consciousness in urban consumers is increasingly making them opt for healthy snack products.

This has led health-conscious snacks also known as “smart snacks” segment to grow at a faster clip than traditional snacks.

According to NielsenIQ Retail Market Measurement, 1 out of 5 snacks now has a health connotation.

“This segment is growing 1.2 times faster than traditional snacks in terms of value, presenting opportunities for brands to innovate in health-focused products and leverage the consumption trend,” said Sonika Gupta, Executive Director, Customer Success – India at NIQ.

This mindful choice trend has boosted the “Smart Snacking” segment, including health-benefiting snacks like biscuits, oats, and Greek yogurt, she added.

The research and insights firm said that 63 per cent of surveyed consumers seek innovative and healthy snacking options, while 50 per cent read ingredient labels to understand nutritional value.

Infact, smaller or emerging players are challenging established players with competitive offerings, with single-serve packs driving demand and growing 60 per cent faster in “smart snacking” due to mainstream pricing strategies.

“The smart snacking segment’s growth is fueled by consumption rates twice that of the general snacks market. The consumption preference is driven by small convenient pack sizes that have demonstrated 60 per cent higher growth compared to traditional small packs in the snacking space,” the report added.

Consumers are prioritizing snacks promoting bone health, immunity, heart health, and gut health. There is also a growing preference for snacks rich in vitamins, minerals, and fiber as well as those containing natural ingredients such as multigrains, nuts, dried fruits, and antioxidants.

South and East India account for 60 per cent of the smart snacking market, with bone health valued highly across regions, it said.

“Metros contribute the highest to smart snacking, growth in the Smart Snacking segment is also evident in rural areas and lower town classes, matching urban growth rates. Manufacturers should align their strategies with regional and demographic nuances,” added Vidya Sen, Customer Success Lead – India, NIQ BASES.

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