Indian Consumer Habits Cannot Be Second Guessed As They Evolve

Health consciousness and rising incomes have combined to alter what Indians at large consume

- MADAN SABNAVIS

The impressionistic view one gets is that a sea change has been underway in the habits of consumers, with a tilt towards health consciousness. While younger generations are averse to sugary foods and drinks, they also consume processed foods for their convenience. Are there any numbers to substantiate these possible trends?

Granular item-wise data on consumption across India is not available. The statistics ministry, however, provides production numbers for various non-durable consumer goods, which can be used as a proxy. There are two major limitations, though. The first is that production need not translate to domestic consumption; some of it could be for export, for example. Second, production data can also be affected by opening and closing stocks, which could lead to error. The way out is to take an average of two years as stocks are rarely held for more than a year. There may still be a modicum of uncertainty on exports, but it can be assumed that the direction of change would be the same.

Production numbers for 2013-14 and 2014-15 have been averaged and so have those for 2023-24 and 2024-25 to gauge consumption changes over 10 years. Using 2023-24 and 2024-25 eschews the post-covid pent-up demand syndrome. To gauge spending habits, per capita production numbers can be compared. Some interesting trends emerge from an analysis of major consumer products whose production (and thus likely consumption) has changed significantly—by more than 10%, i.e.,—over 10 years.