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Reimagining indulgence: The next shift in India’s food market
2026-04-26 · via Business News Today: Latest Business News, Finance News

For years, the food industry has tried to sell India the idea of “diet food.” Consumers haven’t bought it, and for good reason. Because India has never really had a diet problem. What we’ve always had is an indulgence reality - one that is deeply cultural, emotional, and habitual. And yet, most “healthy food” brands have been built as if consumers are willing to give all of that up.

The problem with ‘healthy food’

Walk into any store or browse online, and you’ll see a familiar pattern: low sugar, low calorie, baked not fried, guilt-free. On paper, it sounds right. But in reality, most of these products fail where it matters most, they don’t taste good enough to come back to. Consumers try them once, maybe twice. But they don’t stick. And eventually, they go back to what they actually enjoy.

That’s because most “healthy” products are designed to be marketed, not consumed repeatedly. And the contradiction becomes sharper when you look at the data. The Food Safety and Standards Authority of India (FSSAI), along with Indian Council of Medical Research (ICMR), recommends limiting sugar intake to about 25 g per day, roughly five teaspoons. Yet, studies suggest that actual consumption levels in India are nearly double this recommendation, highlighting a clear gap between awareness and behaviour.

What consumers actually want

Food in India has never been just functional. It’s comfort, reward, habit, and culture, all rolled into one. No one wakes up wanting to eat something bland just because it’s better for them, many do it for some time but not for long enough. What consumers really want is far simpler: They want to enjoy what they eat and feel less guilty about it. They’re not trying to eliminate indulgence. They’re trying to make it work better for their lives.

The shift we’re missing

The conversation around food needs to move away from restriction. Because the future isn’t about telling people what they can’t eat. It’s about improving what they already choose to eat. India doesn’t need diet food. It needs permissible indulgence.

Permissible indulgence isn’t about replacing cakes, chocolates, or snacks.

It’s about reimagining them:

  • Keeping the taste intact
  • Improving ingredient quality
  • Adding functional benefits
  • Reducing unnecessary additives

Because if the experience changes, the product doesn’t stand a chance. At the end of the day, taste is not a feature, it’s the baseline. If a product doesn’t taste good, it won’t scale no matter how healthy it claims to be.

Why this shift is happening now?

This is not just a consumer trend, it’s a structural shift. India consumes close to 30 million tonnes of sugar annually, making it one of the largest sugar-consuming markets globally. What’s more telling is where this sugar is coming from.

Nearly 60–65% of sugar consumption today is driven by processed and packaged foods, from bakery products to confectionery and beverages. This is a critical shift. It means the conversation is no longer about eliminating sweets. It’s about reimagining them in their most consumed formats.

At the same time, indulgence isn’t slowing down. India’s confectionery and packaged indulgence market continues to grow steadily, driven by everyday consumption, gifting, and convenience-led choices. Consumers are not stepping away from indulgence. They are simply looking for better versions of it.

Beyond the label

There’s also a growing gap between what is marketed as “healthy” and what actually is. Consumers today are more aware, more curious, and more questioning than ever before. This shift is also being reinforced at a policy level. Initiatives like Eat Right India, along with increasing focus on front-of-pack labelling for high fat, sugar, and salt foods, are pushing the industry toward greater transparency and reformulation.

As a result, consumers are starting to ask sharper questions:

  • What does “no added sugar” really mean?
  • What’s actually inside these products?
  • Is this something I can trust long term?

This is pushing brands to move beyond claims and focus on real, tangible value.

The real question

The future of food in India won’t be defined by how little people eat. It will be defined by what they’re willing to replace what they already love with. Because the question is no longer: “Is this healthy enough?”

It’s, “Is this good enough to become my default?”

The author is Founder & CEO, Awsum.

Published on April 26, 2026