Over 87% of households choose health-linked FMCG products: Worldpanel

New Delhi:  Health has become an everyday consideration for Indian consumers, with health-oriented food and beverage products now representing Rs 63,093 crore in value, growing at a compound annual growth rate (CAGR) of 11.7% over the past four years, according to Worldpanel India’s Mainstreaming Health 2025 study.

The research highlights that 87.9% of Indian households purchased a health product in the past year, signalling that health is no longer niche but has entered the mainstream. Urban penetration is nearly universal at 96%, while rural adoption is accelerating at a 6.2% CAGR, demonstrating the growing reach of health-focused consumption across India.

Staple categories such as atta, salt, oil and ghee, and tea continue to dominate health penetration, with 80% of households buying healthier variants. However, the strongest growth has been observed in “other foods,” including ready-to-cook mixes, which recorded a 46% CAGR, salty snacks at 34%, bottled soft drinks at 29%, and biscuits at 19%.

While penetration in these categories remains relatively low, it is rising rapidly. Repeat purchase rates in the health sector are extremely high at 91% nationally, reaching 96% in urban households, indicating that consumers tend to remain loyal once they adopt health products.

The report further shows that shoppers are willing to pay a premium for health products, averaging 22% more, with lower socio-economic classes (SEC D/E) paying 17% extra. Categories such as tea and bottled soft drinks attract the highest premiums, reflecting the perception of health benefits as a value driver.

Health-focused consumption is expanding beyond disease management. Households managing conditions such as diabetes, cardiac issues, or hypertension consume approximately five kilograms more health products annually, but adoption is increasingly significant in regular, disease-free households. Health has shifted from being problem-led to prevention- and lifestyle-led, particularly among younger homemakers under 34 years and rural households.

Regionally, East and South India are leading the country’s health transition, with penetration rates of 97.7% and 98.5% respectively. These regions are growing faster than the national average and together account for nearly 60% of value growth in health-related categories, making them priority markets for FMCG brands.

Worldpanel India’s H-E-A-L-T-H framework identifies key imperatives for FMCG players, including harnessing health as a growth engine across categories, enabling premiumisation by demonstrating clear benefits, accelerating adoption in under-penetrated categories such as ready-to-cook mixes and snacks, localising strategies for emerging rural and lower SEC segments, encouraging repeat behaviour through trusted ingredients and familiar taste cues, and communicating health as part of everyday consumption rather than medical necessity.

Commenting on the report, K Ramakrishnan, Managing Director, South Asia, Worldpanel by Numerator, said, “Health in India is no longer a niche but a daily choice. While staples like atta, salt, and tea anchor health adoption, the fastest growth is coming from categories such as ready-to-cook mixes and salty snacks."

He further explains, "Consumers are not only loyal but also willing to pay a significant premium for healthier options. For brands, the opportunity lies in making health a mainstream growth driver, showing clear value, accelerating adoption in emerging categories an,d positioning health as an everyday lifestyle choice rather than a medical necessity.”