GST was not imposed on popcorn for no reason, the market is so big in the world

GST Council Meeting: The GST Council has recently included popcorn in three different tax slabs: 5%, 12% and 18%. This decision may come as a surprise to many, but if one understands the growing market of popcorn, this move is very important from an economic point of view.

Indian market of popcorn

The popcorn market in India is expanding rapidly. At present, its estimated market size is around Rs 1,200 crore. According to the report, it can reach Rs 2,600 crore by 2030. The sector is estimated to have an annual growth of about 12.1% between 2024 and 2030.

A major reason for this growth is the increasing consumption of popcorn in multiplexes and movie theaters. Along with this, its use has also increased during home entertainment such as movies and cricket matches. The ready-to-eat popcorn market is the largest, while the microwave popcorn segment is growing the fastest.

Contribution of multiplexes

Multiplexes are a major contributor to popcorn sales in India. For example, PVR Cinemas sells 18,000 popcorn tubs daily. Apart from this, companies like Banaco supply popcorn kernels to about 80% of multiplexes.

Global Popcorn Market

The popcorn market is also growing rapidly worldwide. According to a report by Mordor Intelligence, the market was estimated to be around $8.80 billion (Rs 75,000 crore) in 2024, which could reach $14.89 billion (Rs 1.26 lakh crore) by 2029. An annual growth of 11.10% is estimated globally.

North America is the largest market for popcorn, while the Asia-Pacific region is the fastest growing market. Companies like Hershey's, PepsiCo, Popcorn Weaver and ConAgra are the major players in this industry.

GST Slabs and Classification of Popcorn

The GST Council has placed popcorn in different tax slabs based on its type and preparation:

5% tax: Popcorn made with simple salt and spices (not packaged and labeled).

12% tax: Ordinary popcorn packaged and labeled.

18% tax: Popcorn with sweet flavors like caramel.

Government perspective and revenue potential

The large and rapidly growing market of popcorn is a good reason to bring it under the tax net. Through this, the government hopes to increase revenue.

Conclusion

Bringing popcorn under the ambit of GST is not just a simple taxation decision; it is a symbol of the government's economic policies and the growing consumer market. Given the growing demand, large-scale production, and emerging opportunities globally, this move can prove to be beneficial for both the Indian and global economy.