The surge in demand for healthy snacks and food choices has seen a remarkable increase in e-commerce order volumes, with over a 60% year-on-year (YoY) growth, according to a recent report by Unicommerce. This shift towards healthier options is driven by consumers’ rising disposable incomes and a heightened awareness of the importance of making better food choices. As India embraces a healthier lifestyle, start-ups are capitalizing on this trend by offering a variety of nutritious snacks and meals.
Rise in Demand for Healthy Snacks: A Growing Trend
Industry experts predict that the healthy snacking market in India is set to grow at a compound annual growth rate (CAGR) of over 20% between 2020 and 2025. This growth is fueled by factors such as the increasing awareness of clean eating, higher disposable incomes, and a renewed focus on wellness post-pandemic. Gaurav Manchanda, Founder & Director of Wellbe Foods, acknowledges this trend, stating, “The demand for healthier snacking alternatives in India has seen a remarkable surge over the past year.”
E-commerce and Quick Commerce Driving Growth
With a surge in demand for snacks like protein bars and plant-based options, start-ups are leveraging e-commerce and quick commerce platforms to reach a wider audience. Nikunj Biyani, Co-founder of SuperYou, highlights the impact of e-commerce on consumer behavior, with a significant portion of sales coming from quick commerce and digital platforms like Amazon and Flipkart. This shift has enabled brands like SuperYou to make their products easily accessible to consumers with just a tap of a button.
Quick commerce platforms provide real-time sales data and insights that traditional retail lacks, leading to better decision-making and revenue growth. Sandeep Singh, Co-founder of Blue Tribe Foods, emphasizes the importance of these platforms in driving revenue and expanding reach. Aditya Sanghavi, Founder & CEO of Snackible, notes that purchases on these platforms are largely impulse-driven, making them ideal for snack products.
Expansion and Market Penetration
To support the growth in demand, snack brands like Snackible, Blue Tribe, WellBe, and SuperYou are expanding their product portfolios and exploring new markets. Blue Tribe aims to leverage quick-commerce channels to test new markets, while WellBe plans to diversify its product offerings to include a variety of healthy snack options. SuperYou is looking to introduce new flavors and expand into adjacent categories like biscuits, protein powders, and breakfast cereals.
Tier 2 and Tier 3 Markets: The New Frontier
The healthy snacking revolution is not limited to metropolitan cities in India, as Tier 2 and Tier 3 markets emerge as significant growth drivers. E-commerce order volumes for healthy foods and snacks have seen a 90% YoY growth in Tier 3 cities, according to Unicommerce data. Start-ups are actively expanding their footprint in these regions, with a focus on expanding retail distribution, launching localized marketing campaigns, and maintaining competitive pricing.
In conclusion, the growing demand for healthy snacks in India reflects a broader shift towards wellness and clean eating. As consumers become more health-conscious and seek better-for-you options, start-ups are innovating and expanding their offerings to meet this demand. The rise of e-commerce and quick commerce platforms has played a crucial role in making these products more accessible to a wider audience, driving growth and market penetration across the country.
