India to have a big slice of global snacks market: GIA
India along with other Asian countries will be at the forefront of growth expected in the global snack foods market.
By TNN |
NEW DELHI: India along with other Asian countries will be at the forefront of growth expected in the global snack foods market. The sector is estimated to grow to $300bn by 2010, a new report by market research firm Global Industry Analysts (GIA) says.
According to the report titled ���Snack foods: a global strategic business report���, growth will be driven by demand for healthier products, changing lifestyles and the consumer���s growing affinity towards convenience foods specially in developing markets.
That���s good news for the Indian snack food players like Frito Lay, ITC, Parle and a slew of regional strongholds such as Haldiram���s, Bikano and Balaji, all of which make up for a total market size of about Rs 2,000 crore.
Growth in the Asia-Pacific region will be driven by the region���s high population density, strong economic growth, rising disposable incomes, liberalised import policies and greater willingness to shift from traditional food to western diets. Countries in the Asia-Pacific, Latin America and Eastern Europe regions put together are predicted to grow up to 6-7% in terms of volumes by 2010.
Predicting that these markets will represent the highest growth opportunities, the report states: ���With globalisation of brands and products, consumers in the developing world have caught up with their Western counterparts.���
The report says industry has started to adapt successfully to the changing market, putting to rest fears that consumers would move away from snacking foods generally perceived to be being high on fat and salt. Growth is being driven by healthy, low-fat, low-calorie snacks, while snack foods positioned as trans-fat free are also likely to soar in popularity.
On the flip side, products regarded as unhealthy in Western countries are now proving to be more popular in developing countries.
The report however warns that the snack foods sector may come under pressure facing competition from convenience foods. ���A growing percentage of the global population, in both developed and developing countries, is replacing light meals with snacks. Convenience foods manufacturers could therefore market some of their products as snacks to try and gain more market share,��� the report adds.
According to the report titled ���Snack foods: a global strategic business report���, growth will be driven by demand for healthier products, changing lifestyles and the consumer���s growing affinity towards convenience foods specially in developing markets.
That���s good news for the Indian snack food players like Frito Lay, ITC, Parle and a slew of regional strongholds such as Haldiram���s, Bikano and Balaji, all of which make up for a total market size of about Rs 2,000 crore.
Growth in the Asia-Pacific region will be driven by the region���s high population density, strong economic growth, rising disposable incomes, liberalised import policies and greater willingness to shift from traditional food to western diets. Countries in the Asia-Pacific, Latin America and Eastern Europe regions put together are predicted to grow up to 6-7% in terms of volumes by 2010.
Predicting that these markets will represent the highest growth opportunities, the report states: ���With globalisation of brands and products, consumers in the developing world have caught up with their Western counterparts.���
The report says industry has started to adapt successfully to the changing market, putting to rest fears that consumers would move away from snacking foods generally perceived to be being high on fat and salt. Growth is being driven by healthy, low-fat, low-calorie snacks, while snack foods positioned as trans-fat free are also likely to soar in popularity.
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On the flip side, products regarded as unhealthy in Western countries are now proving to be more popular in developing countries.
The report however warns that the snack foods sector may come under pressure facing competition from convenience foods. ���A growing percentage of the global population, in both developed and developing countries, is replacing light meals with snacks. Convenience foods manufacturers could therefore market some of their products as snacks to try and gain more market share,��� the report adds.
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