Less affluent households spend ₹2,000 on monthly groceries

  • Kantar noted that groceries, dairy, fruit and vegetables account for 41% of share of expenses for an Indian household—making it the highest share of expense for a household

Livemint
First Published1 Nov 2022
Average household spends around  <span class='webrupee'>₹</span>14,000/month Mint
Average household spends around ₹14,000/month Mint

India’s “super spender” households spend an estimated 7,200 per month on groceries, while less affluent households spend slightly over 2,000, according to data released by Kantar.

Kantar defines super spenders as those households that account for 25% of the total household expenditure in the country. That comes from just 5% of the households, it said. The bottom 25% of the spending comes from half the country’s population that Kantar called “lean” spenders. However, although lean spenders only spend 2,144 a month on groceries, this accounts for 33% of their monthly expenditure. In fact, groceries, dairy, fruits and vegetables contribute to nearly 53% of the lean spenders’ total spend.

On the other hand, for super spenders grocery contribution to their overall expenditure is just 12%. “The lean spenders always skew towards essentials because of their limited incomes. As such, in any economically stressful situation, these households have very little leeway to part with the categories they are already buying and therefore appear more stable than the rest of the country. This is also the reason why during every slowdown or high inflationary period in the past, it is rural that led urban in growth,” it said.

Kantar noted that groceries, dairy, fruit and vegetables account for 41% of share of expenses for an Indian household—making it the highest share of expense for a household. This is followed by rent, utilities and medical expenses that constitute 21% of the household expenses.

The average Indian household spends a little over 14,000 per month. However, there is a wide disparity largely on account of the income divide. How much consumers spend and on what has a significant bearing on how consumer goods companies market to the country’s wide population. With India remaining a large value market it isn’t uncommon to see companies pushing small packs, sachets and value packs to reach more shoppers. “Rent, utilities and medical expenses—these are unavoidable, but sizeable expenses in a household. Together, on an average they contribute 21% of all spends, or just above 3,000.

Spends on commute and education rank third in the share of expenses for an Indian household.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeIndustryRetailLess affluent households spend ₹2,000 on monthly groceries

Most Active Stocks

Tata Steel

182.50
04:09 AM | 13 JUN 2024
0.25 (0.14%)

Bharat Electronics

291.55
04:09 AM | 13 JUN 2024
1 (0.34%)

GAIL India

216.00
04:09 AM | 13 JUN 2024
-0.95 (-0.44%)

Zee Entertainment Enterprises

164.90
04:09 AM | 13 JUN 2024
-1.95 (-1.17%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Sobha

2,180.65
04:01 AM | 13 JUN 2024
116.75 (5.66%)

One 97 Communications

420.75
04:01 AM | 13 JUN 2024
18.1 (4.5%)

JM Financial

83.56
04:01 AM | 13 JUN 2024
3.37 (4.2%)

L&T FINANCE

177.75
04:01 AM | 13 JUN 2024
7.15 (4.19%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    73,441.00-219.00
    Chennai
    73,370.00139.00
    Delhi
    73,155.00353.00
    Kolkata
    72,797.00-577.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    99.84/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsloanPremiumGet App