Indian households are steadily moving away from spending predominantly on food essentials, with non-food goods and services now accounting for nearly two-thirds of total household consumption expenditure, according to a report released on Friday, 30 October 2026. The finding, drawn from the Household Consumption Expenditure Survey (HCES) 2023-24, signals a structural shift in how Indian families allocate their budgets as incomes rise and lifestyles evolve.

Key Findings of the SBI Report

The research, published by the State Bank of India (SBI)'s Economic Research Department, found that food expenditure constitutes approximately 32.82% of total household consumption spending, while non-food goods and services together account for around 67%. The study analysed data from 2,61,953 households across rural and urban India, covering the period between August 2023 and July 2024. The underlying data was sourced from the National Statistics Office (NSO)'s HCES, which captures detailed information on consumption expenditure, demographics, education, employment, housing, assets, and digital purchasing behaviour.

Protein Consumption: A Tale of Regional Disparities

The report highlights significant variation in dietary patterns — particularly in the consumption of protein-rich food items — across Indian states. Sikkim and Goa recorded the highest average expenditure on selected protein-rich foods, followed by Haryana. At the other end of the spectrum, Odisha, Chhattisgarh, and West Bengal reported the lowest expenditure levels. According to the report, this disparity reflects differences in purchasing power, prevailing food prices, and local dietary preferences.

Gender Gap in Dietary Diversity

The study also uncovered notable gender-based differences in protein consumption diversity. Male-coded observations showed higher prevalence of diverse protein intake than female-coded observations in most states. The gaps were particularly pronounced in Telangana, Odisha, Punjab, and Chhattisgarh. Rajasthan recorded the lowest percentages for both groups, while the gender gap remained relatively narrow in Assam, Uttar Pradesh, and Gujarat. These findings suggest that dietary diversity gains are not uniformly shared across gender lines, raising questions about nutrition equity at the household level.

Converging Food Choices Across Income Groups

At a granular level, households showed substantial differences in how food budgets are split across cereals, pulses, and milk products. However, expenditure patterns for eggs, fish, meat, vegetables, fruits, and dry fruits displayed lower variation across income groups — a finding the report interprets as evidence that households at multiple income levels are increasingly prioritising protein-rich and nutritionally aware diets. This comes amid a broader trend of rising health consciousness and greater access to diverse food products across India's Tier 2 and Tier 3 towns.

The Processed Foods Signal

Spending on packaged and processed foods has become increasingly similar among higher expenditure groups, the report noted, signalling the growing acceptance of convenience-based consumption. This trend runs alongside — rather than against — healthier dietary preferences, suggesting that the Indian consumer's relationship with food is becoming simultaneously more aspirational and more varied. As India's per-capita income continues to grow, the share of non-food discretionary spending is likely to expand further, reshaping retail and consumption patterns for years ahead.