In recent times, India has witnessed a massive growth in demand for cookies and crackers, fueled by several factors from rising disposable income to preference for healthy and immunity-boosting products in the pandemic. The cookies and crackers segments have grown significantly in the country over the last few years due to the advancing retail and e-commerce boom seen during the pandemic. In addition, the presence of bakery products online and their bulk sale in the previous two years have introduced cookies and crackers in many Indian households.
By 2027, the Indian biscuits market is expected to reach $11,792.3 million. Factors contributing to the market’s growth include increasing the availability of several biscuits and cookies and rising per capita household income. Here are some prominent factors that are driving the growth of cookies and crackers in India:
Rising Middle-Class Population - In developing countries like India and China, a rising middle-class population, coupled with increasing disposable income, contributes to the growth of the cookies and crackers segment. With rising incomes, people are looking forward to opting for snacks with enhanced taste and quality. Moreover, since brands offer taste with health today, consumers are willing to spend extra to get overall satisfaction.
Effect of COVID-19 on Biscuit Industry - Many people started working from home during the COVID-19 pandemic, which resulted in a significant rise in demand for convenience food. Apart from that, people’s munching habits also rose, leading to a steep increase in the market for cookies and crackers. Less time for cooking and limited availability of groceries during lockdowns also fueled the growth as these products have a longer shelf life. According to a report, cookie and cracker sales had shot up by nearly 30 percent in the early days of the pandemic, which was a giant leap.
Change in Consumer Taste and Preferences - The pandemic ushered in a health trend that led to conscious consumers knowing what to eat. While consumers munched on biscuits and cookies casually before the pandemic, the health consciousness gave way to producing more healthy bakery products. In this direction, some brands have done exceptionally well in keeping the taste intact and delivering healthy and nutritious products. Currently, sugar-free and multi-grain cookies and crackers have been thriving in the market, and their demand is rising day by day. At the same time, people also like to experiment with different alternatives, i.e., bakery products apart from biscuits.
Active Lifestyle and Demand for Biscuits and Cookies in Snacks - While the demand for the biscuit segment was increasing already, the preference for cookies and crackers has risen every day. Again, this can be attributed to demand for rich taste and flavor, active lifestyle, women’s active participation in business life, less time for cooking food, and increasing income levels. While cookies are preferred for their sweet taste, crackers penetrate deep into the market for their cheesy and crunchy savor. As per market research, cookies remain the most preferred bakery product and are consumed regularly by people of all age groups.
Gluten-free bakery products like bread and cookies are gaining popularity. This trend is expected to drive the global cookie market, including India. The global crackers market is also witnessing good growth due to consumers’ more interest in food products that have a low-fat content. In addition to this, people are also looking for products made from healthier ingredients like legumes, multi-grains, and others, which brands are offering in the form of delicious salty and tasty crackers.