Beyond the Plate: Indian Households Shift Spending to Services and Non-Food Items
A new SBI Research report reveals a shift in Indian household consumption, with spending moving toward services and non-food items.
The way Indian families spend their money is undergoing a significant transformation. According to a comprehensive research report by SBI Research titled 'India's Consumption Journey,' there is a visible trend of Indian household consumption patterns diversifying, with a gradual move away from basic food essentials toward non-food products and services.
The Big Shift in Spending
The report, which draws its data from the Household Consumption Expenditure Survey (HCES) 2023-24 conducted by the National Statistics Office (NSO), provides a detailed look into the wallets of 2,61,953 households across both rural and urban landscapes. The findings reveal a clear divide in how money is allocated:
- Non-food items and services: Now constitute nearly 67 per cent of total household expenditure.
- Food expenditure: Accounts for approximately 32.82 per cent of the total spend.
This shift indicates that as the economy evolves, Indian consumers are increasingly investing in lifestyle services and a wider variety of non-essential goods.
Changing Plates: The Rise of Protein and Nutrition
While the overall share of food spending is decreasing, the nature of what Indians eat is changing. There is a growing appetite for protein-rich foods, fruits, and vegetables across all income brackets. However, this nutritional shift is not uniform across the country.
Regional Disparities in Protein Spending
The report highlights a stark contrast in how different states spend on protein-rich diets:
- Highest Spenders: Sikkim leads the chart with an average household expenditure of Rs 1,776 on selected protein-rich foods, followed closely by Goa (Rs 1,711) and Haryana (Rs 1,649).
- Lowest Spenders: Odisha recorded the lowest expenditure at Rs 656, with Chhattisgarh (Rs 729) and West Bengal (Rs 745) also on the lower end of the spectrum.
Demographics Driving the Menu
The SBI Research report suggests that who lives in the house dictates what goes into the shopping cart. Demographic composition plays a pivotal role in food preferences:
- Elderly-led households: These families tend to allocate a larger portion of their budget to fruits, vegetables, and milk.
- Child-heavy households: Families with more children show a higher expenditure on milk products, packaged foods, and served food.
Geographical Quirks in Consumption
Geography continues to influence the Indian diet, with certain states showing strong preferences for specific food groups:
- Haryana: Milk and milk products are a priority, accounting for 28.6 per cent of food expenditure.
- Jharkhand: Cereals dominate the budget, making up 38.6 per cent of spending.
- Chhattisgarh: This state sees the highest expenditure shares for pulses (20.5 per cent) and vegetables (14.3 per cent).
A Heterogeneous Journey
Interestingly, the report finds that even households with similar income or expenditure levels do not spend their money the same way. This heterogeneity is most evident in the consumption of pulses and cereals.
SBI Research notes that while there is a gradual movement toward more balanced dietary patterns, significant disparities remain in protein consumption when analyzed across different states and gender groups.
Ultimately, India's consumption journey is being reshaped by a combination of evolving household needs, demographic shifts, and a growing desire to spend beyond the basic necessities of the kitchen.