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F&B to account for 42 per cent of household expenditure

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Food and beverage would account for 42 per cent of the Indian household expenditure by 2021, a report has said.

A Mintel Study: Food and drink trends 2017

According to a report in PTI: According to the customer marketing company ’s report, with 42 per cent, food and beverage will top spot the household consumption expenditure by 2021. Besides, education and conveyance would be 7 per cent, medical 5 per cent and durable goods 6 per cent of the total consumption expenditure.

Due to the expanding middle class population in the country, the share of discretionary spending is expected to contribute 56 per cent to the household expenditure.

In rural areas, expenditure on conveyance, education and medical is on the rise, whereas in urban areas conveyance, personal care and medical will account for large part of non-food expenditure.

“This signifies that larger portion of household’s income will be spent on self-care, self-development, and education,” it said adding, expenditure on motorcycle and scooter, mobile phones and other durables are expected to rise by 2025-26.

It is noted that credit cards are still lagging behind in the payment choice, with cash and debit cards being the preferred choice.

“High interest rates, pre-screening requirements, security fears by households are some of the reasons for this lag,” it said.

Co-founder and COO of Hansa Cequity, said: “With India’s middle class population on the rise, the marketers are keen to understand on how much each individual household spend and what are the changing dynamics of these spending patterns.”