Decoding Transparency in Food Choices for the Savvy Indian Consumer

gayatri nalinde
4 days ago
9 min read

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EXECUTIVE SUMMARY

Imagine walking into a grocery store, picking up a packet of biscuits and glancing at the back of the packaging. The label is filled with complex numbers, percentages, and small‑font disclaimers that make little sense to the average consumer. With no clear indicators of high sugar or unhealthy fats, how can a family making quick purchasing decisions truly know what they’re feeding their children? This is the reality for millions of Indian consumers today, bombarded with misleading claims and unclear labels, struggling to differentiate between healthy and harmful choices. In India, the rise of non‑communicable diseases (NCDs) such as obesity, diabetes, and cardiovascular illnesses is closely tied to poor dietary habits. Countries like Japan, Singapore, and the European Union (EU) have taken bold steps by introducing strong front‑of‑pack labelling (FOPL) regulations, proving that clear, accessible labelling drives healthier choices. Yet, India lags behind, with voluntary and industry‑driven approaches failing to empower consumers.

PROBLEM STATEMENT & SCOPE

India’s food labeling regulations are not consumer‑friendly, leading to low comprehension and poor dietary choices. Key issues include small font sizes, lack of colour-coded risk indicators, misleading marketing claims, and weak enforcement. Unlike Chile’s black warning labels or Singapore’s Nutri‑Grade system, India’s back‑of‑pack labels fail to guide consumers effectively.

The scope of this study includes:

Evaluating weaknesses in India’s food labelling laws.
Comparing India’s approach with leading international FOPL systems.
Proposing data‑driven and design‑led reforms for a more effective consumer information system.

GAPS IN EXISTING KNOWLEDGE

Global bodies like the WHO and FAO advocate for clear, interpretive labelling systems to combat rising diet‑related diseases. Evidence shows that bold, colour-coded and warning‑based labels are more effective than numerical data in aiding consumer decisions.

In contrast, India’s proposed Indian Nutritional Rating (INR) remains voluntary for the past four years, limiting its reach. Moreover, there is limited large‑scale research on how Indian consumers understand and use food labels, creating a critical gap between policy intent and consumer behaviour.

MAPPING THE INDIAN CONSUMER JOURNEY: FROM SHELF TO SELF

In India, the average consumer begins their food

purchase journey with limited pre‑shopping research, often influenced by brand visibility, price, and celebrity‑endorsed advertising, particularly for HFSS (high in fat, salt, and sugar) products like snacks. During shopping, quick decisions are made with minimal attention to nutritional labels, as many consumers either lack awareness or find labels complex. Post‑purchase, health impact reflection is rare unless linked to medical advice or social influence. While sugar and fat content have begun gaining attention, sodium remains largely ignored, despite its role in rising hypertension and heart disease rates.

IMPORTANCE & RELEVANCE OF FOOD LABELLING REFORM

India is witnessing a surge in diet‑related non‑communicable diseases, with poor food choices playing a significant role. Despite having regulatory oversight through FSSAI, current labelling formats are often cluttered, complex, and inaccessible to a diverse consumer base. Issues like small fonts, technical jargon, and misleading claims make it difficult for the average buyer to understand what they’re consuming. Reforming food labelling is crucial not only to improve public health outcomes but also to enhance regulatory credibility, encourage industry accountability, and align India with global standards. Stronger FOPL policies can lead to healthier consumer behavior, incentivize reformulation among food producers, and reduce the growing burden on the healthcare system.

UNPACKING THE NUMBERS: WHAT THE DATA REVEALS?

Purchase Drivers & Label Priorities

As per the survey conducted specifically for this paper, data reveals that brand reputation (26.8%) leads food purchase decisions, while nutritional value, ingredient list, and price share equal secondary importance (17.1% each). Surprisingly, only 9.8% consider FSSAI certification or government regulations, pointing to a disconnect between regulatory frameworks and consumer trust. However, rising health influencers and digital educators are emerging as credible voices, helping decode food labels in accessible formats.

Health Awareness & Risks

While 46% of respondents reported being healthy, nearly 33.5% already suffer from NCDs such as diabetes, hypertension, and heart disease, especially in the 25‑34 and 45‑54 age groups. Alarmingly, sodium levels – a major risk factor – are rarely checked, as most consumers prioritize calories, sugar, and fat, signaling a critical gap in public awareness.

Label Reading Barriers

Top barriers to label comprehension include small fonts (41.3%), technical jargon (33.3%), and misleading claims (26.7%). The most significant concern, however, is the lack of standardization, which confuses consumers across products and geographies. While visual cues are less commonly flagged, they remain linked to broader design inconsistencies.

Education & Label Behaviour

A clear pattern emerged between education and label literacy: respondents with postgraduate or doctorate degrees were more likely to always read food labels, whereas those with undergraduate or lower education levels engaged with them rarely. This reinforces the need for simplified, inclusive label design.

Public Sentiment & Preferred Formats

There is strong demand for regulatory reform: 73.3% support mandatory FOPL and 92% want multilingual QR code access. In terms of design, a star‑rating system was preferred by 53.3%, followed by color‑coded labels (33.3%) and warning‑based symbols (13.3%). The data suggests that intuitive, visual labeling systems, backed by tech‑enabled solutions are the way forward.

INDIAN NUTRITIONAL RATING (INR)

Front‑of‑Pack Labelling (FOPL) is a global public health strategy that places simplified nutritional information, such as sugar, salt, and fat content, prominently on food packages to guide quick, informed choices. India’s adaptation of this is the Indian Nutritional Rating (INR), introduced by FSSAI. The INR assigns 1 to 5 stars based on both risk nutrients (sugar, saturated fat, sodium) and positive ingredients (fruits, legumes, protein, etc.). However, unlike global models that use bold warning labels or color codes, INR lacks interpretive visuals and remains voluntary for four years, limiting its impact.

POLICY IMPACT & INDUSTRY RESPONSE

India’s FOPL and INR policies, though well‑intentioned, suffer from delayed implementation due to their voluntary nature. Unlike mandatory systems elsewhere, this weakens consumer impact. Resistance from food manufacturers, rooted in fears of reduced sales, mirrors global trends and poses a major hurdle. Additionally, without robust enforcement, misleading health claims may persist, diluting the effectiveness of labelling reforms. Stronger regulations, industry incentives, and public pressure will be key to meaningful adoption.

COMPARATIVE EFFECTIVENESS OF INR VS. GLOBAL FOPL SYSTEMS

Country	FOPL System	Key Features	Effectiveness
India	Star Rating (INR)	1 to 5 stars based on nutrient profile; lacks color coding; voluntary implementation limits impact	Limited reach and low effectiveness
Chile	Warning Labels	Black hexagons for high sugar, salt, and fat	Effective deterrent for HFSS foods
Singapore	Nutri-Grade (A–D)	Color‑coded label based on sugar and fat	25% reduction in unhealthy food sales
EU	Traffic Light	Red, Yellow, Green system	85% consumer recognition rate
Japan	Ingredient Transparency	Restricts misleading fruit imagery	Prevents deceptive marketing

CHALLENGES AND LIMITATIONS OF INR

The Indian Nutritional Rating (INR) system, though well‑intentioned, suffers from key shortcomings:

Its voluntary rollout delays widespread adoption.
The absence of clear visual warnings makes it less intuitive.
Star ratings alone risk creating misleading equivalence between vastly different products, especially without colour-coded cues to guide interpretation.

For INR to be effective, it must be mandatory, visually explicit, and supported by robust enforcement and transparent communication tools like QR codes and multilingual support. Without these, it risks becoming another symbolic initiative with limited impact on public health outcomes.

WHO, UN & FAO GUIDELINES ON FOOD LABELLING

International bodies like the WHO, UN, and FAO advocate for clear, science‑backed front‑of‑pack labelling (FOPL) to reduce non‑communicable diseases and promote informed choices. The WHO nutrient profiling model calls for visible warnings on high sugar, salt, and fat content, while the FAO’s Codex Alimentarius pushes for standardized, transparent nutrient declarations.

These global frameworks emphasize:

Warning labels or colour-coded systems
Limits on misleading health claims
Mandatory enforcement for real impact meet WHO, UN, and FAO standards, India must

To meet WHO, UN and FAO standards, India must:

Make FOPL mandatory
Use warning symbols
Enforce truthful marketing

Global alignment isn't just ideal, we have to what indian consumers are asking for.

RECOMMENDATIONS

To create a transparent, effective, and consumer-friendly food labelling system, India must adopt a multi-dimensional approach that balances short-term interventions with long-term policy reforms. The proposed recommendations are categorized, considering two key dimensions:

Timeframe: Short-term (immediate actions) vs. Long-term (systemic reforms).
Focus Area: Consumer Awareness & Motivation vs. Industry & Regulatory Implementation.

	Short-Term Actions (Immediate Implementation)	Long-Term Reforms (Sustainable Policy & Industry Shifts)
Consumer Awareness & Motivation	Launch large-scale public awareness campaigns to educate consumers on FOPL, ingredient lists and nutritional claims. Introduce QR codes on food packaging, enabling consumers to access multilanguage, detailed nutrition breakdowns.	Incorporate nutrition literacy into school curricula, ensuring children develop an early understanding of reading food labels and making healthy dietary choices. Develop AI-powered smart labels, allowing consumers to receive personalized dietary recommendations based on their health profile.
Industry & Regulatory Implementation	Make FOPL mandatory for HFSS (high-fat, sugar, salt) foods, prioritizing products with the highest health risks. Restrict misleading marketing practices, such as banning deceptive fruit imagery unless products contain 100% real fruit content (as per Japan’s model).	Implement Chile-style black warning labels for high-risk foods and enforce standardized front-of-pack color coding for all processed foods. Provide tax incentives to food manufacturers that reformulate products to meet healthier standards, encouraging industry-wide improvements.

FROM LABELS TO IMPACT: A FOUR-YEAR VISION

With phased regulatory enforcement and stakeholder buy‑in, India can see measurable outcomes within 3–4 years, such as improved label comprehension among 70% of consumers, reduced HFSS intake, and a drop in NCD risk. These outcomes mirror global benchmarks like Chile’s 25% cut in unhealthy food sales and will position India as a health‑first, globally aligned food economy.

CHAMPIONS OF CHANGE: INDIVIDUAL EFFORTS & BEST PRACTICES

Food labeling reform isn't just a top-down policy issue; rather, it thrives on grassroots momentum. In India, individuals, NGOs, and progressive companies are already making an impact:

Voices Driving Awareness

Revant Himatsingka (Food Pharmer): Uses social media to expose misleading food marketing and demand cleaner labels. His viral content has influenced consumer perception and brand accountability.
Dr. Shweta Khandelwal (PHFI): A leading voice on nutrition policy, pushing for clearer labels and spotlighting ultra-processed foods' role in NCDs.
Celebrity Advocates: Figures like Virat Kohli and Milind Soman promote mindful eating, subtly nudging the public toward label literacy.

NGOs & Public Health Champions

Centre for Science and Environment (CSE): Exposed excessive sugar, salt, and fat in processed foods, influencing FSSAI’s labelling agenda.
NAPi: A coalition pushing for warning labels, policy reform, and consumer education.
ICMR: Advocates for reduced processed food intake and standardised labelling in dietary guidelines.

Industry-Led Initiatives

Tata Consumer Products: Pioneered clear, front-of-pack labelling for added sugars and salts.
ITC & Nestlé India: Reformulating products to lower sodium and trans fats, aligning with global trends.

India’s labelling journey is gaining momentum, driven by informed individuals, civil society, and forward-thinking brands. With stronger policy support, these efforts can catalyze a national shift toward food transparency and better public health.

CALL TO ACTION

Food labeling reform must move beyond the drawing board and into the marketplace. To safeguard India’s future health, stakeholders across government, industry, civil society, and consumers must join hands in creating a transparent food system that educates, empowers, and ensures that every Indian family has the tools to make healthier food choices.

Meet The Thought Leader

Vamsi is a mentor at GGI, and has a diverse background that includes being a former McKinsey employee and a graduate of IIT Madras. He possesses a broad skill set encompassing strategy and operations, gained from his various roles and industry exposure.

Meet The Thought Leader AUTHOR

Rainee holds a Bachelor of Design degree from the National Institute of Fashion Technology (NIFT) and brings several years of experience across fashion, luxury, lifestyle and consumer brand strategy. Currently pivoting into consulting, she combines her creative background with a growing focus on consumer awareness and policy to design solutions that are both impactful and people-centric.