Snacks For Children in India: Bridging The Nutrition Gap: January 2019

SNACKS FOR CHILDREN IN INDIA: BRIDGING THE
NUTRITION GAP
January 2019
INTRODUCTION
DEMOGRAPHIC SHIFTS &
MALNOURISHMENT IN CHILDREN
PARENTAL TRENDS CREATE A NEW
POTENTIAL MARKET
CASE STUDIES & RECOMMENDATIONS
INTRODUCTION
Scope
Disclaimer
Much of the information in this
briefing is of a statistical nature and,
Snacks while every attempt has been made
to ensure accuracy and reliability,
INR964 billion Euromonitor International cannot be
held responsible for omissions or
errors.
Figures in tables and analyses are
calculated from unrounded data and
may not sum. Analyses found in the
Dairy briefings may not totally reflect the
companies’ opinions, reader
INR1,200 billion discretion is advised.
Packaged Food
Indian children are among the
INR4,328 billion most severely malnourished in
the world. While low incomes
Cooking Ingredients and Meals are a key factor, urban children
do not eat balanced diets. The
INR1,542 billion growth of nuclear families and
less time to cook at home
contribute to nutritional
deficiencies. Millennial parents
pay more attention to their
children’s nutrition. Though
kids’ nutrition has attracted a lot
Staple Foods of attention, few products focus
on meeting their needs. A few
INR573 billion manufacturers seek to address
this by introducing children’s
snacks.
.
© Euromonitor International PACKAGED FOOD: SNACKS FOR CHILDREN IN INDIA: BRIDGING THE NUTRITION GAP PASSPORT 3
INTRODUCTION
Key findings
India has a large middle The Indian population is undergoing dramatic shifts that are reshaping how
class population, a growing people relate to food. The rise of nuclear families, urbanisation, changing
number of nuclear families gender roles and independent living are altering food consumption habits.
and working women, which These changes are extending to what parents are feeding their children.
have an impact on kids’
nutrition
Current food options are not The Ministry of Women and Child Development’s National Family Health
effective in meeting the Survey highlighted the extent of malnutrition among kids in the age group of 0-
nutritional requirements of 5 years. In India, there is void when it comes to kids’ nutrition, as child-specific
kids products have yet to take off in packaged food. Currently, parents are feeding
their kids traditional homemade dishes and snacks that are thought to fulfil
their nutritional needs.
Child-specific packaged Packaged food companies in India do not typically target specific age groups,
food companies are but rather offer products for all ages. However from 2015 India has seen the
currently lacking in India emergence of a few food startups that focus on kids’ nutrition. However, these
companies offer limited product categories within snacks and need to explore
a wider range of food options.
Manufacturers need to More than designing the right product, manufacturers need to keep in mind
address the three Cs for consumption inertia, creating the right distribution channel and communicating
kids’ snacks to take off the message. New entrants and the existing packaged food conglomerates
should assess the opportunities in the kids’ snacks market in India, and also
draw learning from the successful kids’ snack startups.
INTRODUCTION
POTENTIAL MARKET
DEMOGRAPHIC SHIFTS & MALNOURISHMENT IN CHILDREN
A snapshot of India’s demographic landscape
 Working women account for 6% of

the total population in 2018, and the
growth of nuclear families has forced
parents to take on more
responsibilities. Parents are
searching for ways to feed their kids
Middle class Median Disposable Income Kids in the age group of
a balanced diet independently.
households with at least per Household 0-12 years  Day care centres and nannies are
four members
also playing an active role in taking
76 million INR352,838 313 million care of kids, and are an integral part
of families. Parents seek advice
from paediatricians and loved ones
to decide what to feed their kids.
 Time-pressed millennial parents are
relying on social media apps to
identify nutrient rich food options
and menus for their kids. Many
parents strictly follow a diet plan for
Couples with Working women Consumer Expenditure by their kids for every day of the week.
Children population Rural vs Urban Split
 Despite all such measures
85 million ` undertaken by parents to feed kids,
174 million INR46,532 vs INR53,170
billion a majority of children still suffer from
malnutrition in the middle and upper-
. middle class segments.
Despite rising incomes, India’s malnourished rates are the highest globally
Malnutrition in Indian children  As per a survey conducted by the Ministry of Women

age 0-5 years and Child Development within the National Family
160% 130 Health Survey during 2015, it was identified that
malnourishment among Indian children in the age
group of 0-5 years is high. However, this figure has
110
been reducing gradually over the last two decades.
120%  0-5 year-old kids in India mainly suffer from stunting
0-5 year population in million

90 followed by underweight, wasting and overweight.
Though the cases of stunting and underweight have
Malnutrition
53% declined in recent years, wasting among children has

80% 70 increased over the last 10 years.
46%
44%
 Indians continue to consume non-balanced and non-
36% 50 nutritious foods, either in the form of under nutrition,
over nutrition or micronutrient deficiencies.
40%
 Children falling under the social status of Below
30 Poverty Line (BPL) are the most malnourished in
India. The study also highlighted that children of
0% 10
mothers with little or no schooling suffered high
1992 1999 2006 2015 cases of malnourishment. Feeding patterns and
unmet government support are other reasons for
Overweight Wasting high malnourishment among kids in India. Hygiene,
Underweight Stunting food supplements, balanced meals and adequate
0-5 year populuation in million nutrients are key factors for the growth of children.
Reasons behind malnutrition amongst children varies by affluence
Urban and affluent

Rural and poor households
households
Children in urban areas
substitute snacks with meals
leading to nutritional
deficiencies. Lack of
availability of nutritional
snacks points to an
opportunity to fortify the
existing snacks and address
the nutritional gap. To
address the nutritional
challenge at the bottom of
•Working parents in urban •With low awareness of the the pyramid, the Indian
households spend very little time nutritional needs of children and
cooking at home. They either very limited money, low-income Government is taking
cook many meals at once or rely households feed their kids what is measures to ensure food
heavily on foodservice channels available. Though meals are all
or packaged foods to feed their cooked at home, they rely security. The National Food
kids. primarily on food which is easily Security Act, 2013 and
•Despite high awareness of the available and priced affordably. Antyodaya Anna Yojana was
four meals concept, time-pressed •Children would typically have at
urban parents struggle to provide least two meals. The nutritional introduced to provide
nutritional snacks for their kids. challenge in rural areas is subsidised food grains to the
Additionally, children have started insufficient food, and it has been poor.
to substitute meals with snacks. the government’s focus to first
provide food security.
Nutritional analysis of the food and beverages often consumed as snacks
Nutritional Analysis of the Food and Beverages Often Consumed as Snacks
Per capita Per capita Per capita

Brand name Picture consumption of consumption of consumption of
fibre per day (g) protein per day (g) energy per day (Kcal)
Savoury
0.03 0.19 13.42
snacks
Chocolate
0.02 0.01 1.54
confectionery
Sweet biscuits 0.03 0.26 17.81
Soft drinks 0.0 0.0 6.24
Baked goods 0.16 0.59 15.39
Breakfast
0.01 0.01 0.42
cereal
Kids in urban areas rely largely on the above snacks to meet their energy requirements and often use
them to replace meals. These snacks – though widely available – are low in protein and fibre, and do little
to satisfy hunger.
INTRODUCTION
POTENTIAL MARKET
PARENTAL TRENDS CREATE A NEW POTENTIAL MARKET
Millennial parents pay more attention to healthy eating
Adult Attitudes Towards Health and Nutrition in India 2017  Rapid shifts in the attitudes of
80 millennial parents towards
health is evident in the food
70
products they choose for
themselves and their children.
60
 Parents have begun to buy
more malt-based drinks,
which are enriched with
50
% of respondents
vitamins and minerals and

claimed to provide a boost to
40
both both physical and mental
growth and development.
30
 India is amongst the top 10
health and wellness
20 packaged food and beverage
markets in terms of review
10 period (2013-2018) CAGR.
Rapid growth has stemmed
0 from a growing reliance on
Eating fruit Regular Limited daily Regular health Taking dietary/ healthy packaged food as
and vegetables exercise stress levels exams at the nutritional
doctor supplements consumers now spend less
time cooking at home.
Extremely Important Very Important Important
Key attributes that parents prioritise when purchasing packaged food
Creating a healthy eating habit:

 Being positive role models, parents are eating
healthily to show their kids the benefits. As
per Euromonitor’s lifestyle survey in 2017,
when it comes to choosing packaged food,
parents with young children prioritise natural,
low-sugar/salt/fat, high-protein and other
nutrients over other factors. Hence, nutritional
information on packaging is an important
aspect when choosing the right product for
kids, which is essential for the overall
development of the child.
Food to address specific requirements:
 Apart from providing healthy food, parents
are keen to address certain generic issues.
Weight, height, appetite and other growth
factors are supplemented with regular nutrient
intake. Foods with monosodium glutamate,
high-fructose corn syrup, gluten and similar
features are avoided to prevent growth
problems at a young age. Hygiene and quality
are other factors that parents look for in
packaged food.
Like father like son: parents are the role models for developing eating habits
Besides apparel, “mini me” is Tech-savvy millennial parents Indian consumers are
gaining traction in food rely less on traditional traditionally accustomed to
consumption as well. Parents parenting and more heavily on consuming snacks and are
are keeping their kids away parenting apps such as now acknowledging them as
from calorie- and sugar-rich Parentlane, which focus on an important part of their daily
foods, which are equally scientific methods of raising diet. The focus is on shifting
prominent concepts in Indian kids. Parents use these apps away from traditional deep-
snacks and packaged food. to track sleeping schedules, fried, high-calorie food towards
Parents are introducing better- feeding, and to ask other like- healthier snacks such as
for-you snacks to kids and minded parents for advice, salads, fruit or packaged
cultivating good eating habits including on food and snacks. snack bars.
at an early age.
Kids’ snacks and beverages are an unexplored opportunity
 For kids, availability and consumption of packaged

Composition of kids’ snacks in India
food far outweighs beverages in both value and
volume terms, especially as the concept of
providing nutrition through beverages is less known
Beverages Food to Indian parents and kids.
 Within beverages, only milk-based products such
as sour milk or flavoured milk are popular
alongside packaged juices. It is not very surprising
given that milk is considered nutrient-rich. India is
amongst the world’s biggest milk producers, and
was the second-largest global market in terms of
fresh milk consumption in 2018.
 There are limited food products available in retail
stores which are designed to offer good nutrition to
kids. Parents buy smaller servings of healthy food
such as naturally healthy biscuits and single-serve
juices, which are originally marketed to adults.
 More often, kids consume chocolate confectionery,
cookies and bakery products as snacks, which are
all rich in sugar, in addition to homemade fried
foods such as pakoras, or Indian fried snacks such
as chaklis, mathis and bhakarwadis.
KEY FACTORS TO ADDRESS MALNOURISHMENT
The size of the prize is immense: snacks remain lucrative
 India ranked fourth globally in terms of savoury snacks consumption in 2018, and the market will record the
fastest growth over 2018-2023 with a value CAGR of 22%. Sweet biscuits are also consumed regularly, and
other snacks such as baked goods and chocolate confectionery are prominent amongst kids.
 Whilst demographic shifts will play a pivotal role in catalysing growth over the next five years, an
accelerating shift from homemade to packaged food in tier II and III cities will also influence growth. All
factors combined, snacks in India represents a lucrative category with potential for strong growth.
 Despite this, kids lack healthier offerings. A few companies have realised this need and created snacks for
kids that appeal on both taste and attractive packaging. These products are restricted largely to tier I cities.
Packaged Food Value Sales for Select Categories 2018/2023
1000 25%
900
Value sales, INR billion
800 20%
CAGR growth
700
600 15%
500
400 10%
300
200 5%
100
0 0%
Savoury Chocolate Sweet biscuits, Ice cream and Baked Juice Flavoured Sweet
snacks confectionery Snack bars and Frozen desserts goods milk drinks spreads
Fruit snacks
2018 2023 %CAGR growth
INTRODUCTION
POTENTIAL MARKET
Case study: firmRoots Pvt Ltd
FirmRoots Pvt Ltd
 FirmRoots Pvt Ltd was established in

2016 and specialises in snacks for
children. The company’s mission is to
provide children with good food that
can be fun and healthy.
 FirmRoots Pvt Ltd has four main
products within its portfolio, consisting
of savoury snacks, sweet biscuits,
breakfast cereals and snack bars. The
products are made of many grains,
natural fruits and nuts.
 The products are mainly sold through
internet retailers such as Amazon,
Flipkart and Bigbasket. However, they
also sell through select health and
beauty specialist retailers, organic food
stores and baby stores.
 The company focuses on
 It sells its products under the brand name Timios, and claims an manufacturing wholesome, guilt-free
age-appropriate range of products for children. From its meals and snacks. It not only focuses
ingredients to the final packaging, FirmRoots claims it has made on providing nutrition but also on the
sure all products are nutritious and safe for kids. flavours, colours and textures of the
entire packaged product.
Kids snacks is a lucrative market; but not until the three Cs are addressed
Most parents (including health-conscious ones) do not restrict their kids

Consumption from eating fried food made at home – a traditionally popular staple of
inertia of Indian diets. Homemade fried snacks have a long history in India, and
traditional foods most parents consider them healthier than packaged food products.
Creating more awareness around the nutritional value of homemade fried
restricts uptake food products will remain critical.
Health and wellness packaged foods in India are more prominently sold
through internet retailing and modern grocery retailers, while traditional
Create the right grocery remains the dominant channel for regular packaged food sales.
distribution For a nutritious kids snack brand to become mainstream, manufacturers
balance will need to rework their distribution strategy, and ensure that the product
is available in traditional independent small grocers as well.
Manufacturers of healthier kids snacks will need to communicate the

positioning of their brands correctly. Given that such products will look to
Communicating offer a balance between taste and nutrition, these will contain high-quality
positioning ingredients and may be priced higher. Without clear positioning, these
products are at high risk of price comparisons with mainstream snacks,
and fail primarily on this basis.
FOR FURTHER INSIGHT PLEASE CONTACT
Ina Dawer
Dilip Radhakrishna
Experience more...
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SNACKS FOR CHILDREN IN INDIA: BRIDGING THE

A snapshot of India’s demographic landscape

 Working women account for 6% of

Malnutrition in Indian children  As per a survey conducted by the Ministry of Women

0-5 year population in million

53% declined in recent years, wasting among children has

Reasons behind malnutrition amongst children varies by affluence

Urban and affluent

Nutritional analysis of the food and beverages often consumed as snacks

Nutritional Analysis of the Food and Beverages Often Consumed as Snacks

Per capita Per capita Per capita

Sweet biscuits 0.03 0.26 17.81

Soft drinks 0.0 0.0 6.24

Baked goods 0.16 0.59 15.39

Millennial parents pay more attention to healthy eating

vitamins and minerals and

Key attributes that parents prioritise when purchasing packaged food

Creating a healthy eating habit:

Kids’ snacks and beverages are an unexplored opportunity

 For kids, availability and consumption of packaged

The size of the prize is immense: snacks remain lucrative

2018 2023 %CAGR growth

Case study: firmRoots Pvt Ltd

FirmRoots Pvt Ltd

 FirmRoots Pvt Ltd was established in

Most parents (including health-conscious ones) do not restrict their kids

Manufacturers of healthier kids snacks will need to communicate the

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