India's health-focused F&B market growing at 11.7% CAGR: Report

Worldpanel India's Mainstreaming Health 2025 study highlights the urban and rural penetration of the health-oriented food and beverages.

Manifest Media Staff

Sep 19, 2025, 11:41 am

Picture Courtesy: Lyndon Stratford

Health-oriented food and beverage (F&B) products are representing INR 63,093 crore in value, growing at a CAGR of 11.7% over the past four years, according to Worldpanel India’s Mainstreaming Health 2025 study.

As per the study, 87.9% of Indian households have purchased a health product in the past year, underscoring the fact that 'health' is no longer niche- it has entered the mainstream.

The research highlights that Urban penetration is nearly universal at 96%, while rural adoption is accelerating with a 6.2% CAGR, signalling the democratization of health across India.

Key highlights from the report:

  • Staple categories such as atta, salt, oil/ghee, and tea continue to dominate health penetration, with 80% of households buying healthier variants. However, the strongest growth comes from other foods' like ready-to-cook mixes (+46% CAGR), salty snacks (+34%), bottled soft drinks (+29%), and biscuits (+19%), where penetration is still relatively low but rising rapidly. 
  • Shoppers are willing to pay a 22% premium for health products, with even lower socio-economic classes (SEC D/E) paying 17% more. Categories such as tea and bottled soft drinks attract the highest premiums.
  • While households managing conditions like diabetes, cardiac issues, or hypertension consume more health products (~5kg higher annually), adoption is now growing significantly in regular, disease-free households.
  • Health has transitioned from being problem-led to prevention- and lifestyle-led, particularly among younger homemakers (under 34 years) and rural households.
  • Regional analysis shows that East (97.7% penetration) and South (98.5%) India are leading the country’s health revolution, with growth rates outpacing national averages. Together, they account for nearly 60% of value growth in health-linked categories, making them priority markets for FMCG brands.

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. 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 and positioning health as an everyday lifestyle choice rather than a medical necessity.”

Source: MANIFEST MEDIA

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