The health food products market surpasses 6,300 billion Indian rupees, expanding at a rate of 11.7% per year (Compound Annual Growth Rate)
Published on September 19, 2025
In a significant shift, the health food marketplace is witnessing strong growth not just in urban areas but also in rural regions of India. According to research firm Worldpanel by Numerator, the health food category has been growing significantly, with a notable increase in consumer interest in health-conscious food options.
This growth is attributed to the growing health consciousness among Indian consumers. The health food segment, across 12 key categories, has been growing at a compound annual growth rate (CAGR) of 11.7% in value and 10% in volume over the past four years.
Urban consumers have a higher household penetration of health food products compared to rural consumers. The urban household penetration is 96%, while the rural household penetration is 84.1%. However, rural consumers are expected to increase their adoption of health food products across these 12 categories.
Ready-to-cook mixes and salty snacks are the top growing health categories, with growth rates of 46% and 34% respectively, in the past four years. On average, shoppers pay about 22% more for health products. Interestingly, households where members are suffering from lifestyle diseases consume 33 kgs per year of health food products, while regular and disease-free households consume an average of 28 kgs/year.
The health food products category contributes nearly 81% to the food and beverage volumes. Consumers pay much higher premium prices in categories such as tea and bottled soft drinks, ranging from 60-63%. Repeat purchases of health food products are strong, particularly in categories such as ready-to-cook mixes, salt, bottled soft drinks, and salty snacks.
In a move to further boost the health food market, the government has selected 8 companies, including Tech Mahindra, Fractal Analytics, BharatGen, and Avataar AI, to develop large language models (LLMs) for the stock market today. These models are expected to provide insights into consumer behaviour and market trends, helping companies to better understand and cater to the growing demand for health food products.
The estimated value of the health food products category in India, across these 12 key categories, is approximately ₹63,093 crore (as of May 2025). The health food category includes a wide range of products that are considered healthier alternatives to traditional food and beverage items.
As the health food marketplace continues to grow, it is expected to bring about a significant change in the Indian dietary habits, contributing to a healthier and more conscious nation.
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