Indian households shifting spending towards non-food items, services as consumption patterns evolve: Report
Indian household consumption is likely to become increasingly diversified, with spending gradually moving beyond food essentials towards non-food products and services, as changing dietary preferences and household structures reshape consumption patterns, according to an SBI Research report.
New Delhi: Indian households are increasingly allocating their spending from staple food items to non-food products and services, as changing dietary habits and family structures reshape consumption patterns, according to a research report by SBI Research. Food expenditure now accounts for around 32.82% of total household consumption, while non-food items and services make up approximately 67%, signaling a gradual diversification of consumption.
The report, based on the 2023-24 Household Consumption Expenditure Survey conducted by the National Statistics Office, examined data from 261,953 households across both rural and urban India. It revealed a growing preference for protein-rich foods, vegetables, and fruits among households, regardless of income levels. However, regional disparities persist in food spending.
Sikkim led with the highest average household expenditure on protein-rich foods at Rs 1,776, followed by Goa at Rs 1,711 and Haryana at Rs 1,649. Conversely, Odisha recorded the lowest expenditure at Rs 656, with West Bengal and Chhattisgarh following at Rs 745 and Rs 729 respectively.
The report also noted that household food preferences are influenced by demographic factors. Families with a higher proportion of elderly members tend to spend more on milk, fruits, and vegetables, while households with many children allocate more funds to milk products, served food, and packaged food.
Geographically, milk and milk products constituted 28.6% of food expenditure in Haryana, while cereals accounted for 38.6% in Jharkhand. Chhattisgarh had the highest spend on pulses at 20.5% and vegetables at 14.3%. However, food consumption patterns remained diverse even among households with similar spending levels, especially when it came to cereals and pulses.
SBI Research concluded that India's consumption journey is increasingly being shaped by evolving household needs, demographic factors, and the diversification of spending beyond basic food items.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
