India's Consumption Trends Shift from Food to Digital and Experiences
India's Great Consumption Shift: From Cereals to Data, OTT & Mobiles
Image: Asianet Newsable
India is witnessing a significant shift in household spending, with a marked decline in food expenses and a surge in expenditures on mobile data, OTT platforms, and foreign travel. The Kotak Mutual Fund report highlights that foreign travel spending has increased by nearly 450% over eight years, while the share of cereals in household budgets has drastically fallen.
- 01Foreign travel spending reached approximately ₹1.45 lakh crore (around $19 million USD) in FY26, surpassing the building materials sector.
- 02The share of cereals in household spending dropped from 22% to 5% in rural areas and from 12% to 4% in urban areas between 1999-00 and 2022-23.
- 03OTT platform subscribers grew at a 40% compound annual growth rate (CAGR) from FY19 to FY26.
- 04The live events industry in India is valued at around ₹20,861 crore (approximately $2.5 billion USD) as of 2025.
- 05Retail traders lost a total of ₹2.87 lakh crore (roughly $34.5 billion USD) in the futures and options segment between FY22 and FY25.
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India's consumption patterns are undergoing a dramatic transformation, as highlighted in Kotak Mutual Fund's report titled 'The Great Consumption Shift.' Households are increasingly allocating funds towards digital services, premium products, and experiences, while traditional food spending is declining. Notably, foreign travel expenditures have surged by nearly 450% over the past eight years, reaching around ₹1.45 lakh crore (approximately $19 million USD) in FY26, surpassing the entire building materials industry. The report indicates that the share of cereals in household budgets has plummeted from 22% to 5% in rural areas and from 12% to 4% in urban settings between 1999-00 and 2022-23. Additionally, the live events sector has emerged as a significant consumption category, valued at about ₹20,861 crore (around $2.5 billion USD) in 2025. However, rising financial stress is a concern, with retail traders suffering losses of ₹2.87 lakh crore (roughly $34.5 billion USD) in speculative trading between FY22 and FY25, highlighting a troubling trend where money intended for consumption is increasingly diverted towards financial losses.
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The shift in consumption patterns indicates a growing preference for digital and experiential spending, which may reshape market dynamics and business strategies in India.
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