The snack food industry is constantly evolving, shaped by changing consumer preferences and lifestyles. Convenience, health, and luxury are the main factors leading to a diversification of snack options. Global snack sales are constantly increasing, driven by busy lifestyles, on-the-go consumption, and the demand for quick and satisfying snacks.
According to Statista, the global market is expected to grow at an annual rate of 6.13% (CAGR 2024-2028), and the average per capita volume of the snack food market is expected to reach 9.2 kg in 2024.
“India has the world's largest population, 70% of which are Gen Z and Millennials, making the country's snacking industry very exciting,” said Nikhil Rao, Chief Marketing Officer, Mars Wrigley India. he said. Campaign in Asia Pacific. India's Mars Wrigley focuses on chocolate and confectionery brands.
With urbanization driving increased consumer spending, India's snack industry is expected to witness significant growth and reach USD 23.69 billion by 2028. To capitalize on this growth, companies are tailoring their products to local consumer preferences.
Mr. Rao said, “The evolution of taste in the Indian market includes a growing preference for fusion flavors. Consumers are embracing global tastes while seeking comfort in familiar foods. Additionally, there is a demand for Western cuisine with local appeal, reflecting the move towards more diverse and international flavours.”
Two examples of Mars' fusion flavors are Snickers Kesar Pista and Doublemint Betel Flavor, created specifically for the Indian market to highlight the blend of flavors.
In today's fast-paced world, convenience has also become a top priority. Mr. Rao sees a growing trend in the Indian market towards “on-the-go snacks.”
The third trend to note is that consumers around the world are becoming more conscious of what they eat, and India is no exception. Mr. Rao elaborated on this trend in the country and mentioned how Mars Wrigley has worked with consumers and categorized this market into four types.
First, consumers want the same taste without the guilt, increasing demand for portion control. “This allows us to offer sub-12 gram packs across our brands, available as multi-packs, shared bags and individual units,” Rao said. .
“Another important aspect is nutritional fortification, with consumers looking for products enriched with essential macro- and micronutrients,” Rao said, highlighting the health and wellness trend.
The third segment would be consumers looking for snacks and confectionery with ingredients that are better for them as they try to stay healthy, he added.
The fourth trend, Rao said, is Ayurveda. It has a huge influence in the country, driving many brands that are not necessarily in the snack space, but are focused on promoting natural and traditional ingredients.
Do it like Gen Z
Gen Z and Gen Alpha are emerging as a major consumer group around the world, shaping the global food and snack landscape to suit their unique tastes and requirements.
India's population of 1.4 billion, with a median age of 28 years and about 65% under 35 years, includes over 910 million Millennials and Generation Z, with a large proportion of this number The latter.
These Gen Zers are digital natives with limited attention spans and are increasingly shaping brand marketing strategies. A study conducted by Microsoft found that Gen Z's average attention span is only about 8 seconds, which is 4 seconds shorter than Millennials.
Rao notes the proliferation of short-format videos across social media platforms and advertising channels to cater to this segment. From a marketing perspective, there are five things that India's Gen Z consumers are looking for and brands are trying to align themselves with the shared Rao.
“We like brands that are honest, have a strong personality and a clear purpose, like our brand Galaxy, which has authenticity first and advocates for female empowerment. They also value diversity and , we expect brands to take a stance on issues that matter,” Rao said.
The third trend revolves around this consumer base being exceptionally digital-first.
“Gen Z has a strong preference for personalized content. About 81% want brands to use addressable media to establish personal connections and target them based on their specific needs. It shows that they are engaged in the game and using platforms like Snapchat,” Rao said.
Sustainability is also a key concern for Gen Z, Rao said, as they care about the environment and expect brands to do the same.
This generation is also a highly interconnected and globally conscious audience. They actively seek out communities of like-minded individuals and often form global networks through social media and blogs.
“This generation creates and participates in interest groups and follows influencers closely. Brands can effectively engage with Gen Z by recognizing and leveraging these community-driven behaviors. '' Rao said.
Modern consumers around the world are prioritizing experiences over possessions, turning food and snacks into affordable experiential adventures of taste and flavor.
Speaking to India's Gen Z, Rao said: “Marketers should keep in mind that this generation in India also values experiences over material possessions and this needs to be incorporated into their marketing approach. There is,” he said.
Marketing to Millennials and Older Generations
Interest in premium foods is steadily growing around the world, despite consumer concerns about inflation and rising costs of living. This trend is being driven by a variety of demographic and social factors. There is also a growing preference for luxury and luxury goods in India.
Rao said, “Indian millennials, who are at the peak of their earnings, aspire to premium brands and luxury lifestyle brands, indicating a higher degree of premiumization in the Indian market compared to Southeast Asia and other emerging markets.'' '', shedding light on this field.
He added: “They have longer attention spans than Gen Z, making them a target for marketers to focus on their higher household incomes and affinity for lifestyle branding, with average commercial durations of around 15 seconds. There are many cases,” he added.
In India, too, we are seeing an interesting trend in marketing to a generation that is 5-10 years away from retirement and is probably more focused on spending wisely.
Rao talked about how this generation is not fully involved in e-commerce like millennials and is often seen in supermarkets.
“Brands that evoke a sense of trust and security work well with this group, and testimonials are effective. Loyalty programs and discounts are also successful with this audience,” he said.
Social media and traditional media and the Indian approach
While there is no denying that in a vast and diverse country like India, social media marketing offers immense opportunities for brand growth, traditional media is also very important. The circumstances were different for Mr. Rao, who moved from Mondelez in charge of Southeast Asia (SEA) to India's Mars Wrigley.
“Unlike in Southeast Asia, I think a lot of marketing in India is still driven by TV. TV accounts for about 70-80% of our reach, and OTT channels with engaging content are our main focus. form the backbone of its media strategy, followed by social media.”
Unlike other Southeast Asian countries, long-form TV storytelling and 30-second TV ads are still very popular in India, Rao added.
e-commerce growth
Rapid advances in technology are changing the retail landscape by allowing instant purchases from anywhere at any time. This change is reshaping shopper behavior, raising expectations for increased convenience and a more positive shopping experience.
Digital commerce is a rapidly growing aspect of the Indian market and should not be ignored by marketers. The way people shop in India is changing rapidly, with quick commerce (delivery within an hour) often said to be competing with offline stores in terms of convenience.
For Rao, digital commerce provides an opportunity for marketers to build brands and conduct performance marketing. Performance marketing, which includes tactics such as paid search, can be important for brands to gain attention and promote specific products and services.
“While mass media remains an important part of Mars Wrigley’s budget, we are also focusing on brand marketing through online platforms such as Amazon, Flipkart and Swiggy. This includes using banners and other forms of digital advertising to promote and increase visibility on the platform,” Rao said.
Role of GenAI
GenAI can power different stages of your marketing campaign funnel. This includes leveraging technology for market research, automating processes such as layout generation and content creation, and optimizing campaign performance. Rao believes that GenAI for marketers in India is still in the experimental stage.
“For now, we are closely monitoring our policies and rules regarding the use of AI, as we want to avoid consumer issues caused by taking away Gen AI's freedom or sharing inappropriate content. ,” Rao said.
“We have conducted some pilots, but we have not yet fully implemented AI in any significant way,” he added.
