🤯 Cost of Eating Junk: $669 BN?!
Eating junk is not just bad for your health, it is killing our economy too. How? Read on.
Today, we’re diving into a topic that's as spicy as a plate of hot samosas: India's booming fast food industry.
It's not just about satisfying those delicious late-night cravings anymore; there's a whole economic and health story cooking here.
Let's unwrap it!
India Munching on Fast Food
India’s QSR Industry was Rs. 171.9 Bn in FY2022, and is expected to reach Rs. 431.27 Bn in FY2027, growing at a 20.47% CAGR during this period.
That's a lot of biryanis and burgers!
According to the Access To Nutrition Initiative (ATNI) study, between 2011 and 2021, India’s Ultra-Processed Food (UPF) sector grew at a CAGR of 13.37% in retail sales value, representing 37% of the overall processed food market.
This is an increase of more than 90% since 2011!
In fact, low-income families spend more than 90% of their earnings on food items, of which 10-15% is on highly-processed and packaged food, including chocolates, carbonated drinks and chips!
While happy hormones are released with every intake of junk food, our bodies are not very happy.
Junk Food Making India Unhealthy
Here's a not-so-tasty stat:
The National Family Health Survey-5 (2019-2021) reported that 24% of women (aged 15-49 years) and ~23% of men (aged 15-49 years) in India are overweight or obese, a significant increase from the previous survey (20.6% women and 18.9% men were reported to be overweight or obese by the National Family Health Survey-4 in 2015-16).
Result?
A rise in micronutrient-related non-communicable diseases (NCDs).
According to the Indian Council of Medical Research (ICMR), deaths due to NCDs in India increased from 38% in 1990 to 66% in 2019, with unhealthy diets as one of the major reasons.
Well, health is not the only thing taking a toll due to junk food.
The economy is feeling the heat too.
Unhealthy dietary habits are slicing into productivity, resulting in massive economic losses.
India ranks third (after the US and China) among 154 countries ranked on estimated losses due to unhealthy dietary patterns.
Wondering how much losses?
A whopping $669 billion (considering purchasing power parity)!
That's a big bill for burgers and pizzas, no?
Solution to this Junk Food Problem?
While people are now shifting towards healthier alternatives (thanks, Covid), the tummy wants what it wants.
With rising disposable income and rise of food delivery platforms, cutting on junk food won't be a cakewalk.
And well, this is not just an India problem.
Governments around the world are putting on their innovative hats to solve this.
Mexico introduced a sugar-sweetened beverage tax in 2014, leading to an average reduction of 7.6% in sugary drink purchases by 2017.
Hungary introduced a public health product tax in 2011, resulting in a 27% reduction in sales of taxable products.
Colombia recently introduced a 10% junk food tax, rising to 15% next year and reaching 20% in 2025.
Should India also follow suit?
With diverse dietary patterns and socio-economic differences, can a standard junk food tax reduce the consumption of processed food in India?
Well, we have started somewhere.
Public health advocates have insisted the government regulate the sales of processed foods, including imposing advertising restrictions on junk food.
After all, an analysis of 43 ads of pre-packaged foods and their composition revealed that they were high on nutrients of concern (mainly sugars, salt and saturated fats).
The Ministry of Health and Family may also adopt warning labels for all junk foods, including pre-packaged sugary beverages, juices, bakery products, cookies, chocolates, confectionery, health drinks, chips, ice-creams and pizza.
Plus, people like Revant Himatsingka (aka Food Pharmer) have been driving a change in this industry with their proactive approach of calling out the health hazards of products of FMCG companies in India.
Yes, we need more such conversations and realizations before it’s too late.
Cutting on junk sounds like cooking a complex dish - it needs the right ingredients and timing.
While design architecture and taxes can play some role in aiding the consumer to make the right decision, the ultimate power of choice rests with them.
After tasting temptation, will we be able to resist it? Will you now choose health over taste or is it too late?
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