Urbanisation, rural consumption and omnichannel retail to drive India’s home and household market to US$237 billion by 2030: Deloitte report has been saved
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Urbanisation, rural consumption and omnichannel retail to drive India’s home and household market to US$237 billion by 2030: Deloitte report
National, 18 September 2024: Deloitte India’s Powering Consumption Growth: India’s Home and Household market report projects that the home and household sector will reach ~US$237 billion by 2030 at a CAGR of over 10 percent. The growth is fuelled by increasing disposable incomes, shifting consumer preferences and a growing focus on comfort and convenience across product categories.
The home and household market is witnessing strong demand, particularly in tier 2 and tier 3 cities that are emerging as growth hubs. High disposable incomes, the rise of digital platforms, easy access to credit, and young consumers seeking modern designs, home renovations and personalisation, which provide tailored offerings to consumers, lead this demand.
While the home and household industry is expanding rapidly, there are still limitations to overcome. After-sales support, warranty worries and the need for a comprehensive omnichannel strategy are all significant issues for businesses to handle.
Sustainability is becoming a central concern for Indian consumers, with rising demand for energy-efficient appliances and eco-friendly kitchenware. Manufacturers are increasingly investing in water-saving bathroom fittings, sustainable kitchen solutions and energy-efficient technologies to cater to eco-conscious consumers. This trend, coupled with government policies such as the Production Linked Incentive (PLI) scheme, Pradhan Mantri Awas Yojana (PMAY), SMC, UJALA and PM Mitra, is driving demand and attracting investments in the home and household sector.
Commenting on the report launch, Anand Ramanathan, Partner, Consumer Products and Retail Sector Leader, Deloitte India, said, “India's home and household market is witnessing a remarkable evolution, where consumers are gravitating towards premium and branded products, with businesses increasingly adopting a consumer-first approach. There is a deeper focus on consumer experiences and design-led product innovation. Social media and advanced technologies enable companies to precisely target and engage their audiences, making the market more dynamic and responsive to changing needs.
Omnichannel retail and e-commerce are helping businesses connect with consumers, expanding their reach beyond urban centres. To stay ahead, companies must embrace emerging trends like quick commerce, rethink their operating models and integrate innovation across the value chain—from products to post-sales services.”
Four key factors driving growth:
India’s home and household sector is expected to witness robust growth, driven by the following factors.
- Premiumisation is on the rise. Growing demand for luxury homes and innovative branded products is pushing companies to enhance consumer engagement and brand strength.
- The value segment remains crucial as the middle-class market drives volumes, offering significant potential for brands to expand their presence.
- The shift towards omnichannel and quick commerce is transforming how consumers shop, making it essential for businesses to deliver seamless, connected experiences across digital and physical platforms.
- Technology is becoming a key differentiator, with brands using VR, AI and personalised experiences to elevate consumer satisfaction and brand advocacy.
Other factors driving growth in the home and household sector are as follows:
- Rising disposable income: India’s per capita disposable income reached US$2,500 in FY23, marking a 13 percent growth over the last year, driving the demand for premium products.
- Growth in real estate: The real estate sector is expected to post a 25 percent CAGR, reaching ~US$1 trillion by FY29, spurred by the demand for second homes and large properties and boosting household product sales
- Increased private consumption: With private consumption accounting for 63 percent of the GDP in 2023, India is set to become the third-largest consumer market globally by 2030.
- Shifting consumer preferences: Easier credit access enables young buyers to invest in premium and niche home products, emphasizing quality and customisation.
- Rising demand in tier 2 and 3 cities: Rising disposable income and evolving consumer preference for high-quality products fuel growth in these cities
- Reduced makeover cycle: Consumers are indulging in home makeovers, driving the renovation market's projected growth to US$14.3 billion by 2027.
- Role of influencers: Interior designers and social media influencers shape consumer choices by sharing design trends and innovative materials, elevating potential buyers’ aspirations.
- Favourable government policies: Government initiatives, such as the PLI scheme, PMAY, SMC, UJALA and PM Mitra, have significantly enhanced capacity, stimulated demand and attracted investments in the home and household sector.
- Shifting consumer preferences: Easier credit access enables young buyers to invest in premium and niche home products, emphasizing quality and customisation.
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This press release has been issued by Deloitte Touche Tohmatsu India LLP.
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Mou Chakravorty
Deloitte India
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Email:chakravortym@deloitte.com