Health foods and beverages market to touch $30 billion by 2026
According to a report by Avendus Capital, the investment banking arm of Avendus Group, Indian households are set to treble their spending on health-focused foods and beverages in the next five years, as consumers increasingly migrate to healthier choices and buy meals with superior components.
The financial advisory firm predicted a 2x increase in per capita spending on health foods by 2026. According to the report, the segment will reach a market size of US$ 30 billion in the next five years. India is the fastest growing health food market, with a 20% CAGR.
Health-focused foods and beverages accounted for 11% of India's US$ 88 billion packaged foods and beverages market in CY20. By CY26, this proportion is predicted to rise to 16%, or US$ 30 billion.
Meanwhile, from 108 million in 2020, the number of health-conscious consumers is predicted to climb to 176 million in 2026. Healthy snacking will experience significant increase, with options such as biscuits, fruit snacks, snack bars, and trail mixes dominating market expansion, followed by healthy dairy products.
Covid has expedited the movement toward mindful eating, which has been underway for several years. While consumers continue to enjoy salty snacks and carbonated beverages, their food repertory now includes less sugar, as well as millets, quinoa, oats, dark chocolate, berries, and healthier cooking oil options, as well as portion control.
Following the pandemic, 70% of Indians indicated they would prioritise dietary modifications to improve general health.
40% of business for packaged foods and beverages firms operating in this market is skewed towards large metros, with the rest coming from the rest of the country.
Meanwhile, the country's top food regulator has pushed for more transparency in food labelling.
Packaged food goods in India will soon be labelled with an official health star rating (HSR), which ranks a packaged food item based on salt, sugar, and fat content. The rating will be printed on the package's front.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.