
Food and beverage sales volumes outside the home fell 8.6% in the year to March 2026, according to Worldpanel by Numerator. Consumer spending rose 0.5%, but purchasing quantities dropped as people took…
Food and beverage sales volumes outside the home fell 8.6% in the year to March 2026, according to Worldpanel by Numerator. Consumer spending rose 0.5%, but purchasing quantities dropped as people took fewer trips and bought smaller packs. Mini-metros with populations of 1 to 4 million were the worst hit, with a 10% volume decline.
Worldpanel managing director K. Ramakrishnan told Livemint the drop followed the LPG crisis triggered by the US-Iran war in late February. About 60% of India's LPG is imported, with 90% passing through the Strait of Hormuz. With over 300 million domestic users, officials prioritised household supplies over restaurants, worsening constraints as retail inflation rose to 4.45% in July.
The narrative that Indians are cutting back on eating out because they are suddenly frugal misses the real culprit: the LPG crisis after the US-Iran war. Worldpanel's data shows spending actually rose 0.5%, but people are getting less for their money. Mini-metros took a 10% volume hit because household cooking gas was prioritised over restaurant supplies. The question now is not whether consumer sentiment will recover, but how quickly the Strait of Hormuz shipment route normalises.
Source: livemint.com
This story was synthesised by AI from the source linked above.