India is swapping solo bites for group dining and healthier picks

Synopsis

Out-of-home food and beverage consumption is increasingly shifting towards group occasions. Solo consumption has declined while larger group consumption has significantly risen in recent years. Consumers are also prioritizing healthier snacks and drinks in their out-of-home choices. This trend indicates a more selective approach to eating outside the home. Companies are now focusing on unmet nutritional needs to drive future growth.

Mumbai: Indians are increasingly shifting their out-of-home food and beverage consumption towards group occasions and healthier products, putting overall volumes under pressure, a report by Worldpanel by Numerator (Kantar) said.

The share of packaged food and beverage consumption among groups of five or more has risen to 43% from 34% two years ago, while solo consumption has fallen to 23% from 29%. Overall food and beverage volumes declined 8.6% in the last year.

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The change suggests consumers are not necessarily cutting out-of-home occasions but becoming more selective about them. Larger groups now account for a disproportionate share of volume, though solo occasions remain more frequent, with groups tending to drive consumption through more packs rather than substantially larger packs.

"This becomes a communication and pack-size play opportunity for brands," K Ramakrishnan, managing director, South Asia, Worldpanel by Numerator, said. "They have to figure out how they can enable the purchase of larger packs through promotions, discounting or marketing."

The shift is also visible in when consumers spend. According to the study, OOH consumption rises sharply in the final week of the month, with the increase particularly pronounced among younger and less affluent households.

"This isn't just a one-year trend and is possibly due to leftover budget in this cohort," he said, adding that brands can position sale days to leverage this spike.

At the same time, health is becoming a more mainstream consideration in OOH consumption. Healthy snacks, drinks and sports beverages are among the faster-growing categories. "Health is becoming a mainstay. It's not a niche anymore," Ramakrishnan said.

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This shift is also reflected in how companies are looking at consumer demand in the sector. Danone India MD Shashi Ranjan said a rising middle class and disposable incomes in the country, alongside awareness, are driving this shift. His company's focus is on identifying unmet nutritional needs rather than simply expanding into categories where it has existing capabilities.

"It's more about what India needs and how we can play a role in India's nutritional needs and drive the next chapter of growth for nutrition in India," Ranjan said.