PepsiCo’s Kurkure bets on millet as India makhana market heats up

After whole wheat and superfood makhana, it's millets—jowar, raagi, bajra, ramdana, cheena, and saama—on their radar.

This week, PepsiCo's Kurkure brand launched jowar puffs, marking a significant move as the first national brand to offer a millet-based product for adults at the mass-market prices of ₹10 and ₹20. The company’s bet is that consumer habits have shifted to create a demand for what it calls “mindful snacking."

“During the covid-19 pandemic, we saw an acceleration of the trend of going back to traditional wisdom," said Aastha Bhasin, PepsiCo India's marketing director for Kurkure and Doritos. The new jowar puffs, she explained, "are delivering something mindful, on the back of a ‘rooted’ grain, while giving back to the Indian agricultural community."

Bhasin clarified that this new product doesn't signal a departure from Kurkure's core identity as a fun, indulgent snack. "It is by no means a departure from who Kurkure is," she said. "It is about offering variety."

Expanding market

India’s snacks market, valued at ₹42,694.9 crore in 2023, is expected to reach ₹95,521.8 crore by 2032, expanding at a compound annual growth rate (CAGR) of 9.08% during 2024-2032, according to a January report by research firm IMARC Group.

Snacking and packaged staples brand Farmley found in a survey of 6,000 respondents this year that Indian consumers are increasingly looking for snacks with ‘functional benefits’ such as higher protein or more energy, but without compromising on taste.

Mint reported last year, citing a report by financial advisory firm Avendus, that the ‘health food’ market could grow up to $30 billion by 2026.

All thanks to the country's health-conscious young population. “The 15-35 age group is the real consumption game," said Prashant Parameswaran, founder of breakfast cereals and millet-based snacks maker Soulfull, which was acquired by the Tata Group in 2021, and renamed Tata Soulfull.

It reported a loss of ₹27.3 crore on a revenue of ₹65.8 crore in 2022-23, showed data sourced from Tracxn.

“They may love potato chips, but they are also seeking alternatives. Will it be as big as classic potato chips? I don’t think so. But it can easily be 5-10% of the packaged foods business across categories," he said.

The so-called superfood makhana (fox nut) is leading the shift in the healthy snacking market, said a 21 July note by the India Brand Equity Foundation (IBEF). The market for packaged makhana is said to touch $1 billion in the next two to three years, based on traders’ estimates, which peg the current annual production of the superfood at 80,000 tonnes—worth around $700 million today at the wholesale rate of ₹700/kg.

To be sure, the Indian government set aside ₹100 crore in the Union Budget 2025-26 to promote the makhana industry, particularly in Bihar.

Clearly, companies are tempted to vie for a slice of the pie.

The millet story

Millet-based foods and snacks have largely remained a breakfast option. Tata Soulfull, for example, is best known for its ragi-based morning cereal made for children. Over time, it rolled out millet muesli and ready-to-cook oats targeting adult consumers.

Rival Marico also sells ready-to-cook masala millets, aimed at health-conscious adults.

To be sure, millets became popular after India designated 2023 as the International Year of Millets. While presenting the budget for 2023-24, Union finance minister Nirmala Sitharaman noted that India is the world's largest producer and second-largest exporter of millets.

To give serious consideration to our diet, she announced that the Indian Institute of Millet Research in Hyderabad will be transformed into a centre of excellence.

However, beyond breakfast options, millets are yet to permeate the portfolio of large snacking brands. Those who are doing it are keen to keep it niche and premium.

“Millet snacking is doing well," said Shauravi Malik, co-founder of millet-based kids brand Slurrp Farm and packaged staples Mille. “It is gluten-free, allergen-free, lower GI, better for diabetics. It’s still early, but like organic or gluten-free 10 years ago, it will become mainstream. Larger brands entering is good because it increases adoption. We are clear, we are premium, with a clean label. That’s the space we play in."

Still a niche offering

Snacks are primarily meant to satisfy cravings, which makes the term "healthy snacking" somewhat contradictory.

Around the world, particularly in the West, consumers indulge in chocolates, while in India, salted snacks, often fried, dominate the market. Bhujia, for example, is a single product category that holds a significant share.

Singapore’s state investor Temasek in March acquired a 10% stake in Haldiram Snacks Foods Pvt. Ltd for about $1 billion, valuing the namkeen maker at approximately $10 billion.

Mint reported on 11 September that Balaji Wafers, which makes chips, wafers, and namkeen has also become a hot target. Temasek, ITC Foods, TPG, ADIA and other private equity funds are in talks to acquire about a 10-15% stake in the company.

“The so-called healthy snacks cater to only a small segment of society," said Arvind Singhal, founder of consulting firm The Knowledge Company. “Major brands are attempting to reach all segments of the population by incorporating millets into their product ranges, but this effort lacks real significance."

He said the biggest challenge is convincing consumers to accept these healthier options. The reality is that, in terms of volume, unhealthy fried namkeen and snacks still lead the market.

“Just look at the obesity rates, both in the West and in our own country—they are alarmingly high. With the emergence of weight loss drugs, anyone can soon resort to taking a pill and then indulge in a packet of bhujia," he said.