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India’s biscuit and cookie consumers want extra indulgence

Premiumisation, health consciousness, and a focus on texture are driving new product developments (NPD) in the Indian biscuit and cookie market, Mintel figures suggest.

While biscuits continue to receive universal appeal within India’s snack market, the country’s industry is focusing on re-exploring indulgence to find where it can push the boundaries of luxury.

Figures from Global Data reveal that in 2023, the cookies (sweet biscuits) segment alone was valued at $4.6 billion (€4 billion) and is expected to grow by more than 7% during its five-year forecast period, between 2023 and 2028.

According to Statista, data shows that the production volume of biscuits and cookies in India reached 632,000 metric tonnes in 2020, marking an “exponential increase” in production volume from 2015.

In 2025, India’s biscuit and cookie categories are garnering elevated appeal, with shoppers seeking premium offerings that surpass everyday budget options to provide special snacking moments that add something a little extra.

Mintel highlighted the potential these trends offer manufacturers, spurring new ingredients, positioning, and campaigns.

Better-for-you formulations drive new opportunities

Products that conventionally sit within the indulgent categories, such as biscuits and cookies, are drawing new appeal with consumers seeking better-for-you formulations that feature healthier ingredient alternatives.

As the nation’s indulgence seekers enter a health-conscious era, producers are looking to combine better-for-you ingredients with exciting sensory eating experiences.

“The rise of health-conscious snacking is beginning to disrupt the category,” said Dr Anamika Banerji, senior research analyst of food and drink, India, at Mintel.

A significant proportion (43%) of consumers are worried about sugar, with 25% stating they are reducing their biscuit consumption, meaning manufacturers need to clarify their stance on sugar reduction and alternatives.

One strategy Mintel highlighted is silently reducing sugar while adding healthy ingredients.

Producers may wish to consider using wholesome ingredients that provide a balanced treat linked to health, rather than making low- or no-sugar claims.

Amping up the sensorial experience

For frequent biscuit and cookie consumers, NPD that offers unique flavour, texture, and formatting combinations is highly sought after.

Mintel’s research found that two in five (40%) biscuit consumers are willing to pay more for a melt-in-the-mouth texture, while a similar proportion (39%) are comfortable spending more on product varieties with new flavours.

“While biscuits are traditionally positioned as an indulgent category, significant opportunities exist for premiumisation through elevated product experiences and innovation in format and flavour,” Banerji said.

1. Transforming textures: Crunch, cheese, and cream

Crunchy textures indicate a more luxurious melt-in-the-mouth experience, which consumers associate with increased indulgence.

Cheese is a popular ingredient for savoury biscuit and cracker creators, with one in three snackers, particularly those who snack frequently, craving extra-cheesy options to boost indulgence, according to Mintel.

Creamy textures in biscuits remain popular among Indian consumers. Combining cream content with natural ingredients to bolster healthful perceptions and stand out in the better-for-you category is a strong strategy.

Developing creaminess, lowering sugar levels, and maintaining crispiness are key considerations for enhancing formulations.

2. Creativity in flavours dominates

Today, shoppers favour novel flavours, with peanut butter, butterscotch, and chocolate truffle leading the way. Cheesecake flavour is also a big hit, especially among one in four financially healthy Indians, compared with just one in five (21%) of those who is economically tight and fewer than one in six (15%) of those who is struggling.

Peanut butter is growing in popularity, with one in four Indian adults agreeing that it is a healthy snacking option. It is also attractive to manufacturers due to its versatility, as it is suitable for both sweet and savoury flavour profiles.

Peanut butter also offers marketers various positioning possibilities, as younger audiences, including gen Z demographics and parents of young children, favour it. Almost one in three (32%) gen Z consumers is interested in peanut butter flavour in packaged sweet biscuits and cookies, compared with 28% of millennials, 24% of gen Xers, and 19% of baby boomers.

Furthermore, one in three parents of children aged four to seven years is interested in peanut butter flavour in packaged sweet biscuits and cookies.

Butterscotch has traditionally remained within India’s ice cream aisles. However, with its rich, sweet flavour profile, it shows potential in other categories, appealing to 29% of biscuit consumers and 36% of those seeking novel flavours.

Manufacturers can appeal to consumers’ captive demand for the novel flavour in new biscuit and cookie product developments.