Home / Industry / Retail /  Less affluent households spend 2,000 on monthly groceries

NEW DELHI : 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.

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