India to become a $30 Bn market by 2026 in health-focused foods & beverages

     A report by Avendus Capital, which is the investment banking division of Avendus Group, indicates that Indian households are poised to triple their expenditure on health-oriented foods and beverages over the next five years as consumers progressively shift towards healthier selections and purchase meals that contain superior ingredients.

    The financial advisory company has forecasted a twofold rise in per capita expenditure on healthy foods by 2026. Per the report, this segment is expected to attain a market value of US$ 30 billion in the upcoming five years. India stands as the most rapidly expanding health food market, showcasing a 20% CAGR.

    Health-oriented foods and beverages comprised 11% of India's US$ 88 billion packaged food and beverage industry in CY20. By CY26, this share is anticipated to grow to 16%, equating to US$ 30 billion.

    In addition, the quantity of health-conscious consumers is projected to surge from 108 million in 2020 to 176 million by 2026. The category of healthy snacking is set to witness a substantial rise, with products such as biscuits, fruit snacks, snack bars, and trail mixes leading the charge in market growth, closely followed by healthy dairy items.

    The COVID pandemic has accelerated the transition towards mindful eating that has been in progress for several years. Although consumers still indulge in salty snacks and fizzy drinks, their dietary choices now feature reduced sugar, along with millets, quinoa, oats, dark chocolate, berries, and healthier cooking oils, in addition to portion management.

    After the pandemic, 70% of Indians reported that they would prioritize changes in diet to enhance overall health, with 40% of the business for firms in packaged foods and beverages reflected in large metropolitan regions, while the remainder is sourced from other areas of the country.

    The nation’s leading food regulator has advocated for greater transparency in food labeling. Packaged food products in India will soon begin to feature an official health star rating (HSR), which assesses a food item based on its salt, sugar, and fat levels. This rating will be displayed on the front of the packaging.