Snacks buck downtrading trend: Study

Mumbai: Even as inflation continues to put constraints on household budgets, one category that has bucked ‘downtrading’ — a phenomenon where consumers move to smaller size packs in an inflationary environment — is snacks.
Snacking remains a source of comfort, even when consumers are navigating the most turbulent times. According to Mondelez’s ‘state of snacking’ India report, which was conducted online by The Harris Poll on behalf of Mondelez from September 18-October 17, 2022, among 513 Indian adults ages 18 and older, turbulent times drive snacking.
The economic climate has impacted food choices with 9 in 10 consumers saying they are concerned about inflation.Consumers report that prices of foods used to make meals are hurting their pockets more than snacks. A large majority (79%) are more budget conscious than they were a year ago, with two-thirds of Indian consumers (67%) reporting that they’re paying more for groceries compared to this time last year, especially the millennials (79%). Yet, 86% respondents said they always find room in their budget for snacks.
Nitin Saini, VP - marketing, Mondelez India, said: “We have not seen downgrading in snacking and we continue to deliver a robust Q-o-Q growth, driven by both value and strong volumes. If ever the choice on smaller packs is made, we believe it’s mostly to enjoy bite sized indulgence. And our robust portfolio is indicative of our aim to empower consumers with choices.”
Snacking is now a daily staple with 76% of people snacking at least twice a day.
As per the report, however, 63% consumers feel guilty about indulgent snacking. “While there is an expression of guilt, 77% respondents also admitted that indulgent snacks are a part of their everyday life and majority also believe that in today’s uncertain times, it’s become even more important to have these moments of indulgence,” said Saini.
“Right from portion control to being more conscious about the ingredients, they are selective, yet want to practice balanced indulgence,” said Saini.