Less affluent families spend ₹2,000 on groceries monthly

Kantar defines super spenders as households that account for 25% of the total household expenditure in the country. It comes from just 5% of households, it said. The bottom 25% of spending comes from half the country’s population, which Kantar called “lean” spenders. However, although lean spenders only spend 2,144 per month on groceries, this accounts for 33% of their monthly expenditure. In fact, grocery, dairy, fruits and vegetables contribute about 53% of the total spending of lean spenders.

On the other hand, for super spenders, grocery contributes just 12% to their total spending. “Lean spenders always lean towards essential items because of their limited income. Thus, in any financially stressful situation, these families have little leeway to part with the categories they are already buying and therefore appear more stable than the rest of the country. This is why during every recession or period of high inflation in the past, it is the rural that led to the urban growth,” it said.

Kantar said groceries, dairy, fruits and vegetables account for 41% of an Indian household’s expenditure – making it the largest portion of a household’s expenditure. It is followed by rent, utilities and medical expenses, which account for 21% of household expenses.

The average Indian household spends a little more 14,000 per month. However, there is wide inequality due to income division. What and how much consumers spend has a significant impact on how consumer goods companies market to the nation’s broadest population. With India having a large value market, it is not uncommon that companies are pushing for smaller packs, pouches and value packs to reach out to more buyers. “Rent, utilities and medical expenses—these are unavoidable, but big expenses in a house. Together, they contribute on average to 21% or more of all expenses. 3,000.

Expenditure on travel and education ranks third in the share of an Indian family’s expenditure.