Nearly half of India’s grocery shoppers have fundamentally changed how they buy food in response to rising prices, according to a new PwC report. This behavioural shift is quietly rewriting the rules of an industry long governed by habit and brand loyalty.
Amid high food prices and income uncertainty, consumers are systematically re-thinking their buying habits—aggressively seeking discounts across channels, stockpiling staples, and even growing their own food. The shift marks a deeper behavioural change: grocery shopping has transformed from habit-driven to cost-driven purchasing.
According to PwC’s Voice of the Consumer 2025: India Perspective report, 63% of Indian consumers express concern about food prices. Among them, nearly half have changed their shopping habits.
The financial pressure is real. About 40% describe themselves as “financially coping”—paying bills but with little left over—while another 6% say they are “financially insecure,” struggling to meet basic expenses.
To stretch household budgets, consumers are adopting systematic strategies. The scale of this shift is remarkable: 46% of those surveyed now shop across multiple stores chasing deals, while an equal number use coupons religiously.
About 44% buy in bulk, and a similar percentage of them have started growing their own food—transforming backyards into budget-balancing tools. Nearly as many (43%) plan meals to cut waste, while others switch to cheaper ingredients or buy near-expiry products at discounts.
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This behavioural shift is reshaping where Indians shop. Discount retailers drew 34% of respondents in the past year, a sharp rise for a channel long considered marginal. Local kiranas (60%), supermarkets (72%), and quick-commerce grocery apps (55%) are all part of this mix—indicating that consumers are channel-hopping purely based on price.
“Affordability is no longer a differentiator—it is a baseline expectation,” PwC notes. That poses a strategic challenge for food brands, which now face consumers ready to abandon brands at the first sign of a better deal.
Policy relief provides limited buffer
Some structural levers may help. The government’s GST 2.0 reforms have cut taxes on staples like milk, paneer and ghee to 0–5%, while lowering GST on restaurant meals from 12–18% to 5%, easing pressure on household food budgets. But PwC cautions that this relief may only slow the trend, not reverse it.
Brands are already adapting by shrinking pack sizes to make prices look lower, running frequent promotions, and building loyalty programmes to keep customers from drifting. Retail chains are expanding private-label health foods at aggressive prices, hoping to win shoppers who are both cost-conscious and health-driven.
For now, India’s grocery market is tilting towards price loyalty over brand loyalty—a shift that could redraw competitive lines. In a market where taste and tradition once commanded unwavering loyalty, Indian households now approach grocery aisles like investment portfolios, calculating returns on every rupee spent and ready to rebalance at the first sign of better value elsewhere.
Edited by Kanishk Singh
