According to trade estimates, the industry is targeting a market size of Rs 450-500 crore (Rs 4.5-5 billion) during Diwali to sell products like biscuits, chocolates, fruit juices and carbonated drinks among other items.
Leading names like PepsiCo, Cadbury, Britannia and Priyagold all have come up with attractive gift packs of their range of products aimed at Diwali.
Surya Foods and Agro, which manufactures biscuits under the Priyagold brand, is targeting a four-fold jump in its sale at Rs 15 crore (Rs 150 million) this year on Diwali.
"This is the second year in running when we are offering some attractive gift packages of our products including biscuits, juices and carbonated drinks," Priyagold's director Sekhar Agarwal told PTI.
He said the products are being offered in the range of Rs 50-200 per pack keeping customers' affordability in mind.
While sweets have been the biggest money-spinner traditionally in terms of Diwali sales, their prices have gone up by up to 25 per cent since last Diwali due to a sharp rise in the prices of milk and milk-products.
The prices of milk and various milk products such as khoya, paneer and ghee, which are basic ingredients for making sweets, have gone up by 14-26 per cent in the past one year.
Besides the increased prices of sweets, the manufacturers and sellers of snacks and dry-fruits are also betting on the brand value of their products as well as a change from the traditional practise of gifting plain sweets.
Companies like PepsiCo, which has a snack brand Kurkure, are already marketing their products as an alternate to sweets on Diwali with special promotions marked for festivities. "We want that every one should be able to purchase the packet so the prices have been kept at as low as Rs 50,"
Priyagold's Agarwal said, adding the offer would continue till Bhaiya Duj, a Hindu festival held two days after Diwali.
He said the company is witnessing increased demand for its products as people, for a change, are looking at other alternatives besides sweets and dry fruits. He felt that rise in prices of sweets are helping in the shift in preference.
Britannia has also come out with some Diwali packs, which are being sold at retail chains like Big Bazaar at a discount. Britannia organised an event in Kolkata to promote its products during Diwali, sources said.
Pepsi's Kurkure has also hit retail stores in attractive gift packs to encash the Diwali fervour. Cadbury, which is the early entrant to tap the Diwali market, has introduced 'dark chocolate' besides existing portfolio this year. It is offering dark chocolates and milk chocolates in different flavours at Rs 200-525 per pack.
The company also launched new advertising campaign featuring Amitabh Bachchan last month to promote Cadbury's 'Celebrations' range for Diwali. "We had a strong double-digit growth during last Diwali. We expect that sales during this Diwali would be better than last year," Cadbury's spokesperson said.