PWC Voice of Consumer report 2025

PwC’s Voice of the Consumer 2025: India Perspective - Briefing Document

Executive Summary

The Indian food industry is at a critical juncture, facing both significant challenges and compelling opportunities. Consumers are navigating economic uncertainties while simultaneously demanding healthier, tech-integrated, and sustainable food choices. This report, based on a survey of over 1,000 Indian consumers, highlights key themes: the pervasive impact of cost-consciousness, the enduring influence of cultural heritage on food choices, a strong emphasis on taste, price, and nutrition, rising concerns about food safety, and the growing adoption of digital health technologies. Brands must adapt by recalibrating value propositions, investing in nutritional innovation, enhancing transparency, and embracing cross-sector collaborations to meet these evolving demands.

1. Overview of the Indian Food Industry Landscape

The food industry in India is characterized by dual pressures:

Intensifying supply chain constraints and rapidly evolving consumer demands for healthier, tech-integrated choices.

Consumer uncertainty around income growth and squeezed savings, alongside fierce competition and market volatility for brands.

Despite these challenges, there are "compelling opportunities":

Demographic shifts are creating niche customer segments, enabling "innovative stock-keeping units (SKUs) and new channel propositions."

The "reinvented global food ecosystem – what we refer to as the ‘How we feed’ domain – is poised to address both human and business needs."

By 2035, the ‘Feed’ domain in India could reach a baseline Gross Value Added (GVA) of USD 1.3 trillion.

2. Key Consumer Insights

2.1 Cost-Conscious Consumers and Value Recalibration

High Concern about Food Costs: "63% of consumers in our survey were concerned about the cost of food."

Saving Behaviors: Almost half of concerned consumers are "prioritising shopping in different stores to maximise savings through offers, switching to discount stores and seeking promotions." Additionally, "44% of consumers are choosing to buy in bulk, while an equal percentage of consumers are growing their own food."

GST Reforms Impact: Recent Goods and Services Tax (GST) reforms have reduced indirect taxes on essential food items and standardized GST on restaurant meals to 5%, making dining out "more pocket-friendly" and household budgets "more manageable." Conversely, GST on carbonated, caffeinated, and energy drinks increased significantly (28% to 40%).

Brand Imperative: "Brands must recalibrate their value propositions to better serve a consumer base that is increasingly cost-sensitive." Affordability is now a "baseline expectation."

2.2 Cultural Roots and Enduring Influences

Cultural Heritage: "74% of consumers stated that their food choices were deeply rooted in cultural heritage and longstanding traditions." This suggests an "edge" for companies providing "functional heritage foods (e.g. aam panna and jeera-flavoured drinks) which appeal to culture, tradition and nostalgia."

2.3 Taste, Price, and Growing Nutritional Awareness

Primary Purchase Drivers: In India, "quality (i.e. taste of product) dictates which food items consumers are going to buy." "40% of consumers ranked taste among the top three factors," followed by "39% ranked price and 38% listed high nutritional value."

Drivers for Brand Switching: "Health benefits, including higher nutritional value, were in fact cited by consumers as the primary driver for switching brands," followed by "better taste and better value for money."

Demand for Functional Foods: This signals a "growing demand for functional foods that support wellness goals." Sales of no-sugar and low-sugar drinks have doubled in India in 2024.

Opportunity for Differentiation: "To remain competitive, brands should clearly communicate health credentials and ensure pricing strategies reflect perceived value."

2.4 Intensifying Food Safety Concerns

High Concern: "84% of consumers surveyed were extremely or very concerned about food safety."



Specific Concerns: Respondents also expressed concerns over "ultra-processed foods, pesticide use, and the levels of additives and preservatives in food."

Responsibility for Healthy Eating: In India, "54% of consumers believe the government and public health organisations

are responsible for driving healthy eating," followed closely by personal responsibility (53%) and food producers/manufacturers (51%).

Industry Contribution: Consumers recommend that major food and beverage companies "increase nutrition in their core product offerings," "provide more products targeted to specific health requirements," and "highlight/emphasise more nutritious choices through focused marketing."

Shift to Fresh Foods: "78% of consumers plan to increase their intake of fresh produce over the next six months."

Brand Action: "Brands must respond with a commitment to transparency through clean labelling, credible certifications, and clear communication of product benefits." Companies are launching organic ranges and upgrading packaging with QR codes for "end-to-end traceability" and "reports from independent test labs confirming that products are free of pesticides."

2.5 Convenience and the Rise of Digital Health Technologies

Omnichannel Grocery Shopping: "More than 70% of consumers have used supermarkets for grocery shopping," "60% have used local retailers and 55% have used an on-demand grocery delivery platform." Ready-to-Eat and Takeout: "46% are buying ready-to-eat meals, 41% are ordering takeout, and 38% are eating out at least once a week." Healthcare Apps and Wearables: "80% of consumers now use at least one healthcare app or wearable technology" for exercise, weight loss, and mental health.

Openness to GenAI: In India, "60% of consumers are open to using GenAI to create personalised diet plans and 56% are open to using it for meal planning."

Holistic Wellness Ecosystem: This signals a "unique opportunity for companies to create a holistic wellness ecosystem merging food, health and technology." Brands should integrate with "digital ecosystems and offering personalised solutions" by "integrating GenAI into consumer-facing platforms."

2.6 Climate Change Awareness vs. Purchase Impact

High Concern: "92% of consumers said they were worried about climate change, with almost 47% admitting to worrying daily." Personal Actions: Consumers are taking proactive steps, with "reducing their personal food waste (62%) and cutting down on personal consumption (60%)" being the most common actions. "49% of consumers said they avoided buying products that were produced in a way that was harmful to the environment," and "49% said they preferred foods with sustainable packaging." Willingness to Pay More: "Indian consumers seem to be more environmentally conscious than their global counterparts, with 73% of them (vs 44% globally) expressing their willingness to pay more to support environmental sustainability in food production."

Sustainability in Purchase Decisions: While climate concerns are high, sustainability initiatives "rank low when it comes to choosing food or switching to a new brand." Key Sustainable Practices: "Pesticide-free products, supporting environmental initiatives and environment-friendly packaging were listed as the most important sustainability practices for food purchases." Local Production Preference: "53% of Indian respondents (compared to 44% globally) prefer locally produced food even if it is more expensive," driven by perceptions of "better health, higher quality and a desire to support the local economy."

Brand Imperative: Brands must "actively demonstrate their commitment to sustainability through transparent practices, measurable impact and consistent communication."

3. Strategic Recommendations for Companies (Domain-Based Approach)

To meet evolving consumer demands, companies must "reinvent to meet growing demands for health and safety, transparency, convenience and affordability." A domain-based approach, involving collaboration and innovation, is imperative:

3.1 Engage with Adjacent Industries

Cross-Sector Collaboration: Top-performing consumer packaged goods companies are "1.2 times as likely as others to engage with adjacent industries, such as waste management, healthcare and logistics." Value Creation: Collaborating with technology companies (biotechnology, data analytics, AI) and HealthTech organizations can lead to "AI-driven personalised dietary recommendations" and "material discovery and ingredient formulation."

Personalized Nutrition: "Food and beverage companies have the potential to evolve into lifestyle ecosystems by helping consumers choose products aligned with their health goals."

3.2 Focus on AI-driven and Agile Co-innovation

Affordability and Added Value: "Businesses must enhance their offerings to deliver both affordability and added value." AI for Innovation: "Leveraging AI for faster iterations and deploying AI algorithms for smarter optimisation will reduce the need for prototyping, enabling companies to quickly adapt to market demands." Smart Packaging: Innovation in packaging, including "environment-friendly packaging" and "smart packaging" with QR codes for product safety validation and curated content, is crucial.

Collaborative Platforms: Develop platforms to "recognise and celebrate contributions from customers, ecosystem partners, internal teams and digital platforms that enable internal and external stakeholders to share and engage in innovation-focused discussions."

3.3 Design Service-based Models

Personalization and Convenience: New models like "subscription and on-demand services" can cater to these desires. Curated Subscriptions: Companies can offer "curated food subscriptions that support their health goals." Health Insurance Partnerships: Collaborate with "health insurance companies to jointly offer tailored wellness insurance plans at discounted prices, helping customers benefit from their lifestyle choices." Leveraging Technology: Utilize "robotics, AI, big data, ML, automation, digital twins and other manufacturing technologies" to design and manufacture products as part of "commercially viable ‘as-a-service’ models."

4. Conclusion

The Indian consumer landscape for food is complex and dynamic, driven by a blend of economic realities, deeply ingrained cultural values, and a rapidly increasing embrace of health and technology. Brands that succeed in this evolving environment will be those that prioritize transparency, innovate around nutritional value and sustainability, and strategically leverage technology and cross-industry partnerships to deliver personalized, affordable, and convenient solutions. The potential for growth in the ‘How we feed’ domain in India is substantial, but it requires a proactive and adaptable approach to meet the diverse and evolving needs of consumers