MUMBAI, 5 July 2025: Indians have significantly altered their consumption behaviour over the past decade, shifting expenditure from food to non-food items, a new analysis by the State Bank of India (SBI) has revealed.
According to the report, consumption of cereals and pulses has seen a notable decline of over 5 per cent in both rural and urban households.
“A significant drop (more than 5 percent) in 'Cereal & Pulses' consumption in both rural and urban areas,” the report noted.
The study highlighted a broader transformation in spending patterns as economic growth, changing lifestyles, and government policy interventions drove households to prioritise non-food goods and services.
The data shows that the share of food expenditure in rural households fell from 52.9 per cent in 2011–12 to 47.04 per cent in 2023–24, a decline of 5.86 percentage points. In urban households, the share of food spending declined from 42.62 per cent to 39.68 per cent, marking a drop of 2.94 percentage points.
In contrast, non-food spending increased substantially. Rural households saw their non-food spending rise from 47.1 per cent to 52.96 per cent over the same period, while urban areas witnessed a rise from 57.38 per cent to 60.32 per cent.
Among non-food segments, spending on toiletries has grown, attributed to greater hygiene awareness and the impact of the Swachh Bharat Abhiyan. The report also noted a decline in the share of spending on clothing and footwear, citing rationalisation of GST rates compared to the previous tax regime.
Meanwhile, the proportion of household budgets allocated to taxes and cess has fallen, potentially reflecting reforms in GST structures.
The SBI analysis suggested that rising incomes, improved living standards, and supportive government policies have contributed to this shift in priorities, especially in rural India.
“This transformation mirrors global patterns of evolving consumption behaviour, with non-food items occupying a growing share of household budgets,” the report concluded.
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