Indian snack companies face challenges in reducing sugar content. Consumers, especially teenagers and parents, desire low-sugar and high-protein snacks. While sugar-free options are growing, taste and cost remain significant hurdles for manufactur...
Mumbai: India's snack makers are struggling to cut sugar.
Low- or reduced-sugar products made up just 0.9% of launches in chocolates, confectionery, biscuits and snack bars last fiscal year ended March 31.
While that is up from 0.1% in 2022, the share has stagnated over the past two years and even slipped from 1.1% in 2024, according to latest data from UK research firm Mintel shared with ET.
But that's not what consumers want. Teens, a major segment for snack consumption, and their parents are seeking more of low-sugar and high-protein products. About a third of them in India prefer high-protein snacks, while a quarter are looking for lower sugar, show the data.
"Sugar-free and no-added-sugar snacks are gaining traction in India, growing 30-40% faster than core categories, although on a low base, as rising health awareness drives adoption, especially in urban and ecommerce channels," Parle Products vice-president Mayank Shah said. Limited launches reflect factors such as the small pack sizes of regular products and mindful consumption that reduces sugar intake, and comparisons with the massive biscuit market, he said.
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Low sugar products made up just 0.9% of companies’ total offerings last fiscal
India has roughly 249 million people aged 10-19, according to the UN Population Fund. And they are turning snacking into a lifestyle and forcing food companies to rethink what sits between meals.
"Sugar-free remains a strong draw in cereals, but is no longer the sole launch hook as brands pivot to high-protein and no refined sugar formulations that balance health with taste," said Aditya Bagri of food manufacturing firm Bagrry's.
"Demand is rising especially online but taste still dominates repeat purchases, even as urban consumers increasingly seek lower sugar and more functional nutrition options like protein, fiber and gut health," he said.
Protein, by contrast, is now more popular, helped by the rise of gym culture, influencer-led nutrition trends and a broader post-pandemic focus on health.
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"Protein has become a mainstream claim in snacking, but differentiation will increasingly come from how it's delivered, whether through better protein quality, pairing with fibre for satiety, or reducing sugar without compromising taste," said Tulsi Joshi, principal food and drink analyst at Mintel India. "For brands targeting teens, the challenge is balancing permissible health with fun, shareable formats."
Experts said reformulating for lower sugar without raising costs or compromising taste is particularly tricky in India, where price points remain tight and competition is intense.
"Consumers are looking to reduce or remove sugar, but many are simply cutting back on sweet products rather than switching," said Tarun Arora, CEO of Zydus Wellness. "It's still early days. Making products that match taste and cost expectations without sugar is hard."
India has seen heightened concerns over food safety amid rising consumer activism over the past few years. Companies, however, say portion control is the right parameter for consumption.
