Small cities, healthier appetite: Tier-III cities lead healthy food growth

According to Unicommerce, order volumes for healthy food staples and snacks surged by 60 per cent year-on-year

The shift towards healthier eating in India is gaining momentum, with online sales of organic and nutritious food products witnessing a sharp rise. A recent study of e-commerce trends shows that over 12 million orders worth $35 million were processed in the past six months (Sept 2024 to Feb 2025), reflecting a growing preference for natural and wholesome alternatives.

 

According to Unicommerce, an e-commerce enablement platform, order volumes for healthy food staples and snacks surged by 60 per cent year-on-year (Y-o-Y). Based on over 20 million order items, the analysis revealed a strong consumer preference for nutrient-dense snacks like nuts, makhanas, ragi, and jowar chips, as well as organic pulses, stone-ground spices, wood-pressed edible oils, A2 Ghee, organic dairy products, free-range eggs, multigrain pasta, oats, plant-based cookies, and protein bars.

 

 

Tier-III cities lead growth in healthy food demand 

While metro cities continue to drive significant sales, demand has surged notably in Tier-3 markets, which saw a 90 per cent Y-o-Y increase. Smaller cities such as Kolar, Rohtak, Sonipat, and Gandhinagar have recorded a substantial rise in purchases, while Tier-II cities like Jaipur, Lucknow, Coimbatore, Nagpur, and Indore have also reported strong growth.

 

The rising demand has prompted legacy food brands and new-age direct-to-consumer (D2C) companies to diversify their offerings, the company said in a statement. Established brands like Marico, SriSri Tattva, The Whole Truth Foods, WickedGud, Amala Earth, Alpino Foods, Yogabars, and GirOrganic are actively catering to this trend. The boom in the segment is further reflected in increased promotions on social media and interest from investors, with brands such as EatBetter, Confect, Namhya Foods, The Naturik Co, HoneyVeda, and First Bud Organics securing funding on platforms like Shark Tank India.

 

Tech-driven brands and nutrition shift

 

Kapil Makhija, MD & CEO of Unicommerce, highlighted the role of tech-driven brands in meeting evolving demand patterns. “As demand patterns are rapidly evolving, tech-enabled brands are able to react much faster in meeting the dynamic demand – offering customised promotions, handling multiple sales channels, leveraging specialised logistics partners, planning inventory distribution, handling returns and reconciliations, and providing an overall efficient and engaging shopping experience for the end customers,” he explained.

 

The move to more nutrient-dense food is in line with larger public health issues. In its April 2024 dietary guidelines, the Indian Council of Medical Research (ICMR) noted that unhealthy eating patterns are responsible for 56.4 per cent of India’s disease burden. Prime Minister Narendra Modi emphasised the importance of reducing excessive oil use and obesity to create a healthier country in his most recent ‘Mann Ki Baat’ address.

 

Growing health hazards in India 

In India, obesity is still a major issue despite increased understanding of the benefits of eating a healthy diet. After China and the US, the nation has the third-highest obesity rate in the world. According to the National Family Health Survey (NFHS-5) (2019-2021), over 135 million Indians are obese, with a higher prevalence among women (24 per cent) than men (22.9 per cent). Childhood obesity is also rising, increasing from 2.1 per cent in 2015-16 to 3.4 per cent in 2019-21, especially in urban areas.

 

A recent Lancet study estimates that by 2050, more than 3.8 billion people globally — over half the world’s adults—will be overweight or obese. India’s share in this trend is expected to grow, with projections indicating that the country may overtake China in absolute numbers in some categories. The number of overweight or obese children in India is also set to increase significantly, while China's figures are expected to stabilise.

 

Organic food market set for growth 

The surge in demand for healthier alternatives is expected to fuel the growth of India’s organic food industry, which is projected to expand from $2.07 billion in 2024 to $10.32 billion by 2032. This translates to an impressive CAGR of 22.2 per cent over the next eight years.

 

With rising health consciousness and a growing focus on nutrition, India’s food industry is poised for a major transformation. The shift towards organic and natural foods is not just a trend but a necessary response to increasing health concerns, making it a promising market for both legacy brands and emerging D2C players.