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Here’s Why Investors are Hungry for Indian Regional Brands 

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Here’s Why Investors are Hungry for Indian Regional Brands 

India’s food and beverage landscape is undergoing a delicious transformation. Investors—particularly private equity (PE) and venture capital (VC) firms—are increasingly betting big on India’s vibrant snack sector. Regional brands, once beloved mainly within their local communities, are now emerging as national and global sensations. 

At the heart of this trend is the astounding rise of Haldiram’s, which recently achieved a jaw-dropping $10 billion valuation following investments from Temasek Holdings and Alpha Wave Global. But Haldiram’s is just the tip of the iceberg. Why are investors so ravenous for India’s regional snack makers? Let’s dig in. 

The Surge in Investments: Tasty Numbers 

The first half of 2024 witnessed mergers and acquisitions (M&A) activity in India’s FMCG sector reaching $938 million—the highest in four years, according to Venture Intelligence. This investment spree includes major deals such as: 

  • Tata Consumer Products acquiring Organic India for ₹1,900 crore and Capital Foods (behind Ching’s Secret) for ₹5,100 crore. 
  • Motilal Oswal Private Equity snapping up a 25% stake in Lal Sweets for ₹330 crore. 
  • Sixth Sense Ventures investing ₹100 crore in Pushp Spices
  • Devyani International acquiring an 80.72% stake in Biryani by Kilo (BBK) for ₹419.6 crore. 

Meanwhile, India’s food processing sector attracted an additional $368.37 million in FDI in FY24-25, with investors from Ireland, Singapore, and Mauritius showing keen interest. Clearly, regional food brands have become the new darlings of the investment world. 

What’s Driving the Craze? 

Cultural Identity and Brand Loyalty 

Food in India is not just sustenance—it’s identity. Each region boasts its unique flavors, creating fierce local loyalties. From Kerala’s banana chips to Gujarat’s masala peanuts, regional tastes are deeply ingrained in consumer behaviour. Investors recognise that these strong emotional connections can be scaled nationally and globally, transforming beloved local brands into massive business opportunities. 

Accessibility Through Quick Commerce 

Quick commerce platforms like Blinkit, Zepto, and Swiggy Instamart have revolutionised how Indians shop for groceries. Today, 31% of urban consumers rely on quick commerce for their primary grocery needs. Even tier-3 and tier-4 towns are embracing instant delivery: a recent survey showed that 90% of respondents in smaller towns are aware of quick commerce, and 50% use it weekly. 

Moreover, social media is playing a pivotal role. In tier-2 and tier-3 cities, 68% of consumers discover products through influencers. AI-driven personalisation further fuels this trend, making it easier for consumers to find and fall in love with regional snacks at the click of a button. 

Massive Market Scale 

The numbers speak for themselves. India’s snack market was valued at ₹46,571.30 crore in 2024 and is projected to grow at a CAGR of 8.63%, reaching a massive ₹1,01,811.2 crore by 2033. With over 432 million middle-class Indians and rising disposable incomes, the appetite for packaged snacks is only set to soar. 

The Global Appetite: Powered by the Indian Diaspora 

With approximately 35 million Indians living abroad, the global demand for authentic Indian snacks is booming. Brands like Haldiram’s export to over 70 countries, tapping into nostalgia, cultural pride, and growing international curiosity about Indian flavors. 

E-commerce and global retail partnerships make it easier than ever to deliver Indian snacks to doorsteps worldwide, opening lucrative new revenue streams for regional brands willing to scale. 

What This Means for Investors 

The combination of strong regional loyalty, rising accessibility through digital platforms, a rapidly expanding domestic market, and robust export potential offers an irresistible value proposition for investors. Add to that India’s trajectory toward becoming a $5 trillion economy, and the case becomes even stronger: food, especially the snack segment, is transitioning from a necessity to a high-margin, high-growth investment sector. 

Taking a Bite out of the Future 

India’s regional snack brands are tasty treats for sure, but investors are eyeing them for the innovation and economic opportunity. As investors continue to pour funds into this sector, consumers can expect even greater access to their favorite regional snacks, while entrepreneurs have a golden opportunity to take their brands from the local stage to the global spotlight.