February 11, 2025 – India, known for its diverse culinary culture, is experiencing a significant change in food and beverage consumption. From rising demand for everyday staples to the expansion of plant-based products, we present an extensive overview of the Indian market. Innova’s 360 research into the food industry in India analyzes how changes in dietary preferences and consumer choices are impacting innovation and development in various food and beverage categories.
Indian Beverage Trends
The consumption of alcoholic drinks in India is on the rise, driven by their variety and taste. However, reflecting on food trends in India, Indian consumers are increasingly seeking healthier beverage options, with a growing interest in non-alcoholic alternatives driven by health considerations. Over the past year, there has been a 28% rise in non-alcoholic alternative beverage consumption influenced by health concerns, lifestyle changes, and availability of more variety and novelty.
Food industry in India research show that in soft drinks, the consumption of bottled water is growing due to health reasons. Energy drinks, iced coffee, and iced tea are also experiencing increased consumption, driven by taste and flavor. Consumers prioritize product safety and premium quality claims in all categories of soft drinks.
Hot coffee and tea consumption is rising in the food industry, with taste and freshness being significant factors. Consumers prefer hot drinks for breakfast and evening. They prefer natural and no artificial colors or flavors claims in hot tea and coffee.
Everyday Staples Trends
In India, there is a notable rise in bread and breakfast cereal consumption. The food industry shows that breakfast cereals are growing faster than bread products. Breakfast cereal purchasing penetration in India (51%) closely matches the global average (52%), driven by health and freshness. Consumers prefer whole grain/multigrain, high fiber, and natural claims in bread and bread products.
India’s dairy product purchasing penetration under-indexes the global average (70% vs. 73%). Within the food industry, the demand for cheese, milk and flavored milk drinks, and yogurt is rising. Flavored milk shows higher purchasing penetration of 58% compared to the global average of 55%. Indian consumers prioritize health, taste, and freshness in dairy products, with product safety, natural ingredients, and no artificial flavors or colors being key influences.
Food industry in India research shows that meat and fish are also highly popular, with fish and seafood consumption growing rapidly. Health is the top driver for both categories, cited by 1 in 3 consumers. Food trends in India indicate that freshness, health benefits, and flavor are top attributes. Consumers are interested in products that are locally sourced or produced, high in protein, and have product safety claims.
Indian consumers are placing greater emphasis on health, freshness, brand, and convenience in staple foods, over indexing the global average in the past year.
Meal Preparation Trends in India
Food industry in India research show the overall meal preparation category has experienced significant growth over the past year. Table and cooking sauces, condiments, and bouillons, stocks, seasonings display the highest growth in this category. Taste, flavor, and freshness drive increased consumption, with more than one-third of consumers citing these factors as key influences.
Food trends in India reveal that health claims, natural claims, cost, and convenience are essential considerations for Indian consumers choosing meal preparations. Made with real ingredients/natural claims have strong appeal, over-indexing the global average in most categories. This preference is particularly evident in savory spreads, dips, and table/cooking sauces, condiments over the past year.
Indian Snacks and Treats Trends
India displays higher purchasing penetration of snacks and treats across all categories compared to the global average, except for sugar confectionery, salty snacks, and cereal and energy bars.
Food industry in India research shows that improved variety and novelty are boosting snacks and treats uptake in the region. They favor the use of premium ingredients, traditional and indulgence claims, such as texture and flavor, in snacks and treats with no sweet.
Taste and freshness are the top priorities for Indian consumers in the food industry across snack and treat categories, with freshness ranking higher than global averages. Functional ingredient (example calcium, iron, and pro/prebiotic) claims are over-indexing the global averages in all the snacking and treating categories, with the cereal and energy bars category showing the highest response rate of 20% for India.
Cakes, pastries, and sweet goods show the most significant gap in the food industry compared to the global average, indicating an opportunity for brands to incorporate functional ingredients in indulgent formats. This suggests that Indian consumers seek both enjoyment and nutritional value in their snacks.
Plant-Based and Special Diets Trends in India
Indian consumers are consuming more plant-based and special diet foods, especially meat substitutes and sports and functional nutritional products. Food trends in India reveal that 41% of consumers have increased their consumption of meat substitutes, driven by diverse factors. Freshness, health, and taste are the main factors influencing the purchase of meat and dairy alternatives in the food industry.
In terms of sports nutrition purchasing, India has the same purchasing penetration rate as the global average of 28%. Consumers’ desire for healthier options is evident in their preference for sports and functional nutrition products, which are driven by high source of protein, functional ingredients, fiber, and sugar reduction claims.
What’s Next in Food Industry Trends in India?
The Indian food and beverage market is ripe for innovation, with consumers seeking variety and novelty.
Reflecting food trends in India, consumers are becoming more mindful of their food and beverage choices, preferring products made with natural, minimally processed ingredients that support cleaner, more sustainable lifestyles. Food and beverage brands can leverage this trend by innovating with healthier, natural, and purpose-driven options like plant-based alternatives and clean label products to meet these evolving demands.
Freshness and taste remain top priorities in the food industry in most of the categories, reflecting a strong desire for products that offer both flavor and quality. They also seek products that offer both novelty and nostalgia, balancing adventurous tastes with a deep connection to their culinary heritage. Brands can respond by creatively combining innovation with tradition, offering fresh takes on familiar favorites, and introducing new products that appeal to the diverse preferences across India’s vast consumer landscape.
As the market evolves, brands that prioritize health, taste, innovation, and authenticity are likely to stay ahead in India’s food and beverage industry.
This article is based on Innova’s Category Growth Drivers in India report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
