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India Drinks - fnbworld bureau

Indians are gulping more beverages

fnbworld bureau


Indian beverages


Indian households are consistently gulping more and more beverages. In the last decade alone more families are spending on non-food items pointing to a clear break in food preferences. And, the trend transcends the urban-rural divide.

On an average, Indians spend about 6.5 percent of their food expenditure on beverages. The share of urban households stands at 7.1 percent while rural households spend 5.8 percent of their expenditure on it, according to the National Sample Survey Office (NSSO) 2011-12.

Beverages in India

The report says the beverage share has steadily increased over the years. While beverage accounted for 3.9 percent in 1987-88, it rose to 4.2 percent in 1993-94. And it went up from 4.5 percent in 1999-2000, rising up to 5.6 per cent in 2009-10. The urban households too show an increased preference for beverages. In 2011 -12, it stands at 7.1 percent.

The NSSO data is an eye-opener on changing food preferences of Indians. The share of food in total consumption has steadily declined in the past 15 years. The average spending of rural households on food products is down from 64.0 percent in 1987-88 to 48.6 percent in 2011-12. The figures continuously declined from 63.2 percent in 1993-94 to 59.4 percent in 1999-2000; it further dropped to 55.0 percent in 2004-05. It stands at 48.6 percent in 2011-12. 

The trend is hardly different in urban households. While the average spending of urban households on food products went down from 56.4 percent in 1987-88 to 54.7 percent in 1993-94, it further dropped to 48.1 percent in 1999-2000. From 40.7 percent in 2009-10, expenditure on food items now stands at 38.5 percent in 2011-12. 

While the overall food category declined, NSSO study said that there was a rise in the consumer expenditure on non–food items. The average spending of rural households on non–food items jumped from 45.0 percent in 2004-05 to 51.4 percent in 2011-12. Likewise, the urban households spending on non–food items increased from 57.5 percent in 2004-05 to 61.5 percent in 2011-12. One can certainly conclude the food stores and its online affiliate companies are in for swigging times!

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