However, product launches in this segment remain limited, highlighting a gap between demand and innovation, The Economic Times reported.

Data from Mintel shows that low- or reduced-sugar products accounted for just 0.9% of new launches in chocolates, confectionery, biscuits and snack bars in the last fiscal year ended March 31. While this is an improvement from 0.1% in 2022, the share has remained largely unchanged over the past two years and has slightly declined from 1.1% in 2024.

Despite this, consumer preference is clearly shifting. Teenagers-a key segment for snack consumption-and their parents are increasingly opting for healthier choices. Around one-third prefer high-protein snacks, while nearly a quarter are looking for low-sugar options, according to the data.

Industry players say demand for healthier alternatives is rising steadily. Mayank Shah of Parle Products noted that sugar-free and no-added-sugar snacks are growing 30-40% faster than traditional categories, especially in urban markets and online channels, though from a low base.

However, companies face challenges in expanding offerings. Shah said limited launches are due to factors such as small pack sizes, mindful consumption habits, and the sheer scale of India's traditional biscuit market.

India's large youth population is also shaping consumption trends. With about 249 million people aged 10-19, according to the United Nations Population Fund, snacking is becoming a lifestyle choice, pushing brands to rethink their product strategies.

Experts say the industry is moving beyond just sugar reduction. Aditya Bagri of Bagrry’s said brands are now focusing on high-protein and no refined sugar formulations that balance health and taste.

At the same time, taste continues to be a key factor in repeat purchases. Tulsi Joshi said protein has become a mainstream claim in snacking, but future differentiation will depend on improving nutritional value without compromising taste or consumer appeal.

Industry experts caution that reformulating products to reduce sugar while maintaining affordability is difficult in India's price-sensitive market. Tarun Arora of Zydus Wellness said many consumers are simply cutting down on sugary foods rather than switching to alternatives, as achieving the right balance between taste and cost remains a challenge.

With rising health awareness, changing lifestyles, and growing consumer activism around food safety, companies are under pressure to innovate. However, bridging the gap between demand and product availability will be key to unlocking the full potential of India's low-sugar snack market.