Indian Households Are Spending More On Non-Food Items As Consumption Habits Shift

Consumption pattern among Indians (Image Source: Pixabay)

Household spending patterns in India are undergoing a gradual transformation, with consumers increasingly allocating a larger share of their budgets to non-food goods and services rather than restricting expenditure to essential food items. Changing food preferences, evolving family structures, and demographic differences are emerging as important factors driving this transition, according to a report by SBI Research.

The report, titled 'India's Consumption Journey', found that food accounts for approximately 32.82 per cent of overall household consumption expenditure, while non-food products and services make up nearly 67 per cent. The findings point towards a progressively diversified consumption basket as Indian households expand their spending beyond basic necessities.

The analysis draws on the Household Consumption Expenditure Survey (HCES) 2023-24, conducted by the National Statistics Office (NSO). It covers information collected from 2,61,953 households across rural and urban parts of the country.

The SBI Research report identified a growing preference for protein-rich food products, fruits and vegetables among Indian consumers. This trend was visible across different income groups, although the extent of spending varied considerably between states.

Among the states surveyed, Sikkim recorded the highest average household expenditure on selected protein-rich food items at Rs 1,776.

Original source: https://www.timesnownews.com/business-economy