Acquired new tastes & distastes: India’s health warnings are loud. Its consumption habits are louder

None of us can miss disclaimers in films and serials saying actors do not endorse tobacco or alcohol. Then there's the tale of the woman who developed mouth cancer, streamed in theatres before a film. Clearly, there is some schizophrenia here. We do not want people to consume tobacco, yet seem comfortable with its subtle promotion.

Influencers, meanwhile, tell us that sugar, aerated drinks, maida and palm oil are bad for us. Some of these products are now treated almost like poison, with 'no maida' and 'no palm oil' becoming selling points.

Given this background, it's worth examining how consumption of these products has changed over time. Direct consumption data are unavailable. But production data from the statistics ministry offer clues. Over a sufficiently long period, production and consumption broadly converge, after accounting for exports. We compare FY23-FY26 (to avoid Covid distortions) with FY17- FY20. The data cover only the organised sector. The results are nevertheless revealing.


Liquor cabinet: Wine production rose 25%, perhaps reflecting its growing appeal among the young as a lifestyle statement - and the perception that it is somehow 'less of an alcohol'. In contrast, spirits and beer production fell, possibly reflecting rising costs as taxes increased. Yet, toddy production rose 15%, suggesting a shift towards cheaper tipples.

Smokers' den: Cigarette production rose 24%, a striking increase despite constant health warnings, while bidi and 'other tobacco products' recorded negative growth. This may explain why GoI keeps raising taxes on these 'sin goods' as demand remains resilient. Cigarettes are particularly intriguing, given the restrictions on smoking in public places. Yet, the smoke lingers, with young people seemingly continuing to join the pack.

Health obsession: The public appears increasingly conscious of sugar. Production of fruit juices, aerated beverages, jams, cakes and sweets has fallen. The same trend is visible in maida and palm oil, suggesting that health-conscious consumers - and companies using these ingredients in processed foods - are shifting towards alternatives.

On the other hand, consumption of products favoured by Gen Z and millennials has risen.

Slurp it up: Ice-cream consumption is up 34% and coffee 20%, reflecting proliferation of coffee shops and a growing preference for coffee over tea, whose consumption rose just 2.4%.

Tap & order: In keeping with younger consumers' fast-paced lifestyles, consumption of prepared meals rose 23%, also reflecting the boom in food delivery, which has spread well beyond the big cities into semi-urban areas.

At a different level, there are two outcomes that may be linked to the pandemic:

Mediascape: As access to print media was restricted during the pandemic, online media caught on. This hastened the decline in consumption of physical newspapers and journals, which fell by 36% and 68%, respectively.

Pop a pill: Production of anti-diabetes drugs, antibiotics and IV fluids rose sharply, by more than 35% each, while capsules surged 122%. The pharma industry is a major exporter. But assuming exports were broadly comparable across the two periods, the growth rates remain indicative. The trend could point to greater medication use - whether driven by over-medication and health anxiety, or a growing burden of illness and declining immunity.

Signals from 'sin products' are mixed. But the picture is clearer for unhealthy food and non-alcoholic drinks. The former will please GoI as tax revenues rise. The latter should prompt producers to introspect.