BackIndians munched more snacks as lockdowns persisted
The pandemic has brought about conversion of out-of-home consumption occasions into in-home consumption that has driven growth for snacking, Kantar said.
PremiumNEW DELHI : Demand for snacks, such as packaged cookies, chips, noodles, and macaroni, grew over the last two years as the pandemic prompted consumers to create newer in-home eating occasions.
According to data released by Kantar on Thursday, snacking volumes grew 8% between April-May 2019 and April-May 2020. The number jumped further a year later, with snacking volumes growing 12% between April-May 2020 and April-May 2021.
India’s covid-19 infection surge, which prompted countrywide restrictions, drove demand for such products. Consumers also cooked more at home, experimented with new recipes and took to buying more branded foods. This was a result of restricted mobility, which caused out-of-home consumption of snacks such as chips, confectionery, cookies within schools, offices and travel to remain muted.
The pandemic has brought about conversion of out-of-home consumption occasions into in-home consumption that has driven growth for snacking, Kantar said.
Meanwhile, most packed consumer goods companies, especially those that sell foods, have reported similar trends in the past year.
For instance, both Parle Products and Britannia Industries reported strong revenue growth in the June quarter of the last fiscal. While demand normalized during the second wave of infections, some companies have continued to report high growth for their foods portfolio. Britannia reported a slight dip in consolidated revenue from operations for the three months ended 30 June 2021.
Marico Ltd said its Saffola Foods portfolio grew by more than 100% in value terms in Q1FY22. The oats franchise posted a value growth of 59% in Q1FY22, the company said in its earnings announcement on Friday.
Meanwhile, Nestle India has invested ₹1,000 crore as part of the ₹2,600 crore capacity expansion promised for the Indian market over the next three to four years. The company had announced the investment in October last year to expand existing manufacturing capacities, apart from setting up a new plant in the state of Gujarat.
However, Kantar said the growth in snacking consumption will stay steady with restrictions, although it is expected to slowdown as the country starts moving out of home.
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