ITC and clean-label rivals bet on advanced packaging to preserve preservative-free snacks

Indian FMCG players including ITC, Khetika and Akshayakalpa are lifting packaging R&D ~50% to keep clean-label, preservative-free snacks fresh as better-for-you products cross 30% of packaged food spend. Premium formats command 1.5-2x demand, but packaging adds 30-60% per-unit cost, testing margins.

— Source publishedThu, 16 Jul, 2026, 06:00 IST·First seen Thu, 16 Jul, 2026, 06:05 IST·Source Mint

What happened

Indian food and FMCG companies including ITC, Khetika and Akshayakalpa are boosting packaging investment to keep preservative-free, clean-label products fresh,

Key facts

  • packaging R&D up ~50%
  • 55% seek preservative-free snacks
  • better-for-you >30% of packaged food spend
  • value-added ~90% oats/millet on Flipkart
  • packaging costs 30-60% higher per unit
  • packaging 10-40% of FMCG cost, 45-50% dairy/beverages
  • global healthy snacking $107.3bn to $200.5bn by 2035
  • India ~10% CAGR
  • premium rusk 2x demand
  • premium namkeen 1.8x
  • dry fruit 1.5x
  • premium rusk Rs40-60 pricier
  • Rs200 crore topline threshold

Why this matters

The ~50% surge in packaging R&D across ITC, Khetika and Akshayakalpa signals a window to acquire or partner with clean-label brands and preservative-free packaging IP before the category consolidates around premium formats.

What to watch

  • Per-unit packaging cost trend vs. realized premium (margin gap widening or narrowing)
  • Clean-label M&A or strategic investment activity in Indian FMCG
  • Shelf-life claims / recall or spoilage incidents on preservative-free lines
  • Raw material and film/laminate input price moves affecting packaging economics
  • Consumer price-elasticity data on premium vs. mainstream better-for-you SKUs
  • ITC leverages backward-integrated supply chain to internalize packaging R&D and lower per-unit premium
  • Smaller clean-label brands seek packaging-supplier co-development deals or contract manufacturing to share cost
  • Retailers expand private-label better-for-you SKUs to capture the >30% spend shift at lower price points
  • Packaging vendors (Uflex, Huhtamaki type) push active/intelligent formats and modular lines to FMCG buyers