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. Goa followed with Rs 1,711, while Haryana stood third at Rs 1,649.
At the other end of the spectrum, Odisha reported the lowest average spending on these food categories at Rs 656. West Bengal and Chhattisgarh followed, with expenditure of Rs 745 and Rs 729, respectively.
Apart from income levels, the composition of a household also plays an important role in determining its food expenditure, the report noted.
Families with a relatively larger elderly population tend to spend more on milk, fruits and vegetables. In comparison, households with a greater proportion of children generally allocate higher amounts towards milk products, prepared meals and packaged food items.
Food Consumption Across States
The report also highlighted considerable geographical differences in the composition of household food budgets.
Haryana recorded the highest share of expenditure on milk and milk products, with the category accounting for 28.6 per cent of total food spending. In Jharkhand, cereals represented 38.6 per cent of household food expenditure.
Chhattisgarh, meanwhile, had the largest expenditure shares on pulses and vegetables, at 20.5 per cent and 14.3 per cent, respectively.
The findings also indicate that households with comparable overall expenditure levels do not necessarily follow similar food consumption patterns. Differences in spending on cereals and pulses were particularly noticeable, highlighting the influence of regional preferences and other household-specific factors.
While Indian households are gradually moving towards more varied and balanced diets, differences in protein consumption remain an area of concern.
SBI Research pointed out that disparities in protein intake continue across different states and gender groups. This indicates that the increasing preference for protein-rich food products has not translated into uniform consumption patterns across the population.