India’s snack sector is scaling new heights — and the government is stepping in with firepower to fuel this growth. From packaging and automation upgrades to export readiness and processing scale, government schemes are opening up powerful opportunities for snack manufacturers and brands.
As India’s snack economy pushes toward ₹1 trillion by 2027, the real differentiator will be how brands align with infrastructure and policy — not just consumer demand.
But here’s the catch: many regional and mid-sized players are missing out. Why? Low awareness, lack of advisory support, and confusion around eligibility criteria.
Let’s break down what’s available, what’s working, and how brands can stay ahead.
- The Growth Opportunity is Real
India’s snack market — valued at ₹796 billion — is thriving across both ethnic and western segments. But organized brands often face barriers to scaling, from limited infrastructure to high capex and export bottlenecks. That’s where government support comes in. Western Snacks are winning not just on youth appeal or packaging, but because brands have mastered agile business models that enable rapid scale, urban-rural penetration, and distribution innovation. Leading players are doubling down on single-serve/₹5-₹10 packs to win rural consumers newly shifting from local to branded snacks, while simultaneously pushing premium multigrain and baked variants into urban modern trade and e-commerce. Multinational and large Indian western snack players are using PLI-linked automation and regional co-manufacturing hubs to cut unit costs by up to 10–12% in key SKUs.
Ethnic Snacks brands are now harnessing government-backed infrastructure, export, and scale-up schemes to formally organize production, modernize packaging, and expand global market access without losing their core of authenticity, nostalgia, and regional flair. Brands are not just competing on taste or identity but on how they can industrialize and standardize authentic flavors for mass and premium consumption, while still drawing on deep-rooted consumer trust and loyalty developed over decades are riding APEDA-backed export readiness not just for diaspora markets but increasingly for mainstream global shelves (Middle East, North America). APEDA’s packaging compliance support and food park cluster logistics have lowered export entry barriers.
The fastest-growing “mainstream-to-be” trend is the merging of format and function, driven by both consumer demand and business necessity. Brands (ethnic and western) are actively innovating with fusion flavors, healthier bases (millets, legumes, multigrain), lighter processing (baked, air-puffed), and functional benefits (probiotic, vegan, gluten-free).
- The Schemes Snack Brands Must Know
Here’s a quick overview of major schemes with snack sector relevance:
| Scheme | What It Covers |
| PLI (Production Linked Incentive) | Incentives for expanding processing capacity and creating global Indian brands |
| APEDA Export Schemes | Infrastructure, quality compliance, and market development support for exporters |
| CEFPPC | Grants for processing units and cold chains in agro-clusters |
| PMKSY & Food Parks Fund | Credit access and infra development via NABARD and cluster models |
Snack majors like Haldiram’s, Prataap Snacks, Bikaji, and Bikanervala have already tapped into PLI for Ready-to-Eat and Ready-to-Cook segments.
- What’s Working on the Ground
- Packaging and Automation Upgrades:
Many brands are using grants to modernize packaging units, improve shelf life, and reduce wastage , all essential for both domestic retail and export readiness. Leading players are no longer upgrading packaging just to “tick compliance boxes.” PLI-linked automation is now being deployed with a sharper ROI lens:- Shelf-life Extension: Nitrogen-flushed packs and high-barrier films are reducing wastage, especially in Tier 2/3 distribution where replenishment cycles are slower.
- Portion Control: Calibrated pack sizes are getting aligned with both consumer health narratives and price-point strategies.
- Traceability: Integrated coding and batch tracking an emerging requirement for exports ( for example Food Safety Modernization Act 2024 in USA) is also being used for domestic recall-readiness and brand trust-building.
- Export-Ready Infrastructure:
APEDA’s support for post-harvest handling, certification, and quality standards is enabling brands to explore newer geographies beyond diaspora markets. APEDA-led initiatives are enabling more brands (including ethnic/snacks MSMEs) to meet stricter post-harvest handling, food safety certification, and labeling norms. This is opening access beyond diaspora channels into new geographies keen to experience exotic Indian snacks and clean-label products, with processed food exports showcasing growth. - Cluster-Based Scale-Ups:
Food parks and agro-clusters supported by CEFPPC and PMKSY are helping MSMEs share infrastructure, reduce unit costs, and access logistics networks that would otherwise be out of reach.- Shared extrusion, frying, and seasoning lines allow regional brands to test new SKUs at industrial scale without sinking capex.
- Co-location with cold storage, logistics hubs, and quality labs reduces per-unit logistics and compliance costs.
- Structured Financial Support:
Access to credit via NABARD’s Food Processing Fund is easing capex burdens for eligible mid-size brands , especially those in growth or IPO-prep mode.- Structured loans are increasingly linked to scheme-eligible capex (automation, quality upgrades, sustainability), lowering interest outflows.
- IPO-bound companies are leveraging financial discipline imposed by scheme-linked audits as a credibility booster for investors.
- Why Most Brands Still Miss Out
- Limited Awareness or Scheme Fitment:
Many MSMEs don’t know which scheme matches their current stage of growth or expansion goals and default to private funding alone. - Documentation and Compliance Burden:
Application requirements, eligibility checks, and audit frameworks often discourage brands that don’t have in-house policy or legal teams. - Fragmentation in the Supply Chain:
For smaller players operating outside cluster zones, scattered procurement and production make it harder to qualify for scheme-linked support. - Indian Nutritional Rating System readiness: With an anticipation of the Indian Nutritional Rating System, brands/companies are not investing energy in understanding impact/exposure to their categories and have a formulation mitigation strategy on stand-by
- Frost & Sullivan’s Recommendations
To capitalize on India’s policy-driven food growth push, snack brands must act deliberately. Here’s what we recommend:
- Evaluate Your Eligibility Proactively:
Map your current and future investments against available government schemes , don’t wait for capex plans to stall. - Align Product Strategy with Policy Support:
Prioritize SKUs and categories that qualify under PLI or cluster incentives such as Ready-to-Eat formats or millets-based innovations. - Build for Export Early:
Incorporate APEDA-aligned packaging, labeling, and safety compliance from day one even if you aren’t exporting yet. - Strengthen Financial Readiness:
Prepare for scheme-linked audits and fund tracking through better financial systems and reporting practices. - Explore Shared Infrastructure Models:
Engage with Mega Food Parks or processing clusters to de-risk investment and accelerate time-to-scale. - Anticipate Regulatory Shifts – With Indian Nutritional Rating System implementation on the horizon, few brands are proactively assessing category exposure or formulation risk. Forward-thinking players should have a mitigation strategy on stand-by (e.g., reformulation pipelines, label change playbooks) to avoid growth disruption once compliance becomes mandatory.
For more explore our infographic series: Is Your Snack Strategy Aligned with India’s Changing Shelf?
This series covers high-impact themes including:
- India’s Retail Transformation: A Wake-Up Call for Snacks
- From Street to Shelf: Can India’s Packaged Food Get Premium?
- Can Indian Snacks Win Big on the Global Shelf?
To get in touch or speak to our Growth Advisory Experts, E-mail: [email protected]
