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Sustainability Is Redefining Consumer Trust in India's Food Brands

By Yatish Talvadia , Founder & Chief Experience Officer, Anmasa · Published: Jul 28, 2026 08:13 PM

Yatish Talvadia , Founder & Chief Experience Officer, Anmasa

An entrepreneur and business builder at heart, Yatish Talvadia has made a name for himself as a customer experience strategist. For more than ten years, he has been at the helm of consumer ventures in India’s retail and e-commerce space.

Sustainably sourced Indian food products representing responsible farming and ethical food production.
Indian consumers are increasingly choosing food brands that prioritize sustainability, transparency and responsible sourcing.

3 min read

For decades, Indian consumers have chosen food products based on familiar factors such as taste, quality, freshness and price. While these remain important, they are no longer the only considerations shaping purchase decisions. Sustainability has emerged as a defining factor, influencing how consumers evaluate brands, build trust and make long-term purchasing choices.

According to NielsenIQ India's 2025 survey, 75% of consumers now consider sustainability a key purchasing factor, while more than 60% are willing to stop buying from brands they perceive as environmentally irresponsible. Similarly, Deloitte's 2025 India survey found that 72% of millennials and Gen Z consumers prefer brands with verified sustainability claims, while 65% are willing to pay a premium for responsibly sourced food products.

This shift reflects a broader transformation in the food industry, where transparency, ethical sourcing and responsible production have become indicators of quality alongside traditional benchmarks. FMCG industry data further suggests that sustainable brands can achieve customer retention rates up to 30% higher than conventional competitors.

Consumers Want to Know the Story Behind Their Food

Today's consumers are more informed than ever before. Easy access to digital information enables buyers to examine farming practices, ingredient sourcing, manufacturing processes and packaging before making purchasing decisions.

According to Statista, 82% of consumers in India research food products online before buying them. This growing access to information has elevated transparency and traceability into major trust-building factors.

Figures from FICCI indicate that 74% of urban households prefer brands that openly communicate the origin of their products. Consumers increasingly value products that can demonstrate a clear farm-to-table journey, particularly in staple categories such as edible oils, flour and spices.

What were once considered premium differentiators—including clean sourcing, minimal processing and traditional production methods—have become mainstream indicators of quality. More than 58% of premium consumers now view traditional sourcing as a sign of product safety and authenticity.

Building Long-Term Consumer Trust Through Sustainability

Trust has always been central to successful food brands, but its definition continues to evolve.

Kantar BrandZ reports that trust accounts for nearly 45% of customer loyalty in the food sector, with sustainability playing an increasingly important role. Brands that reduce waste, operate transparently, support farming communities and adopt responsible sourcing practices are strengthening long-term consumer relationships.

Environmental, Social and Governance (ESG) research further indicates that companies with transparent sustainability initiatives can improve consumer trust ratings by as much as 32%.

This is particularly significant for staple food categories such as grains, pulses and spices, where consumers closely associate sourcing practices with product quality, safety and authenticity.

Supporting Farmers Strengthens the Entire Food Ecosystem

With more than 120 million farming households, agriculture remains the backbone of India's food economy. As sustainability expectations grow, consumers increasingly evaluate how brands engage with farmers and agricultural communities.

According to NABARD, farmers participating in structured partnerships with food brands experience income stability improvements ranging from 15% to 28%, driven by fairer pricing mechanisms and reduced dependence on intermediaries.

The impact extends beyond farming communities. Consumer research indicates that 73% of buyers are more likely to remain loyal to brands that directly support farmers, reinforcing ethical sourcing as both a social responsibility and a competitive advantage.

Sustainability Is Becoming a Business Imperative

The future of India's food industry will be shaped not only by product quality but also by the purpose and values behind the brands that consumers choose.

According to PwC, 78% of Indian consumers prefer brands whose business models are built around sustainability. This signals a significant shift in consumer expectations, where sustainability has moved beyond marketing messaging to become a core business requirement.

As awareness continues to rise, food companies will need to demonstrate greater transparency, ethical sourcing and responsible business practices. Increasingly, consumers are purchasing more than just food—they are investing in confidence about where it comes from, how it is produced and the values the brand represents.

The brands that recognize this evolving relationship between sustainability, trust and consumer choice will be best positioned to shape the future of India's food industry.

Sustainability Indian Food Brands Sustainable Food Ethical Sourcing FMCG Food Industry India Consumer Trust ESG Responsible Sourcing Anmasa