Deloitte India’s report foresees India’s Home and Household Market reaching $237 billion by 2030, growing over 10% annually. Driven by rising incomes, evolving tastes, and comfort priorities, tier 2 and 3 cities are key growth hubs. Challenges include robust after-sales support, sustainability demands, and shifting consumer expectations. Government schemes like PLI bolster demand. Enhanced disposable incomes, evolving preferences, and government initiatives are shaping the sector positively, emphasizing quality and customization.
Deloitte India’s recent report, "Powering Consumption Growth: India’s Home and Household Market," projects a significant surge in the sector, with estimates placing it at approximately $237 billion by 2030, growing steadily at a CAGR exceeding 10 percent. This expansion is set to be driven by a confluence of factors including rising disposable incomes, evolving consumer tastes, and a heightened emphasis on comfort and convenience across various product segments.
Notably, the home and household market is experiencing robust demand, especially in tier 2 and tier 3 cities that are emerging as pivotal growth centers. This surge can be attributed to factors such as increased disposable incomes, the proliferation of digital platforms, easy access to credit facilities, and a younger demographic seeking contemporary designs, personalized home solutions, and modern renovations tailored to their preferences.
While the industry is expanding rapidly, businesses are facing challenges such as ensuring robust after-sales support, addressing concerns regarding warranties, and the necessity for a comprehensive omnichannel approach to meet evolving consumer expectations effectively.
Moreover, sustainability has emerged as a crucial focal point for consumers, with a growing appetite for energy-efficient appliances and eco-friendly kitchenware. Manufacturers are responding to this trend by investing in water-saving bathroom fittings, sustainable kitchen solutions, and energy-efficient technologies to cater to the environmentally conscious consumer base. Government-backed schemes like the Production Linked Incentive (PLI) scheme, Pradhan Mantri Awas Yojana (PMAY), SMC, UJALA, and PM Mitra further bolster this momentum, fostering increased demand and attracting investments in the sector.
Anand Ramanathan, Partner and Consumer Products and Retail Sector Leader at Deloitte India, expressed optimism about the market's trajectory, noting a notable shift in consumer preferences towards premium and branded products. Businesses are increasingly adopting a consumer-centric approach, focusing on enhancing consumer experiences and driving product innovation through thoughtful design. Leveraging social media and advanced technologies, companies can precisely target and engage their audiences, making the market more dynamic and responsive to changing consumer needs.
Deloitte highlights that embracing omnichannel retail and e-commerce is pivotal for businesses seeking to connect with consumers, extending their market reach beyond urban centers. To stay competitive, companies must embrace emerging trends like quick commerce, reimagine their operational frameworks, and infuse innovation across the value chain, spanning from product development to post-sales services.
Key factors are steering the growth of India's home and household market. Firstly, the surge in per capita disposable income to $2,500 in FY23, with a remarkable 13 percent year-on-year growth, is fueling the demand for premium products. Secondly, the real estate sector is on track to achieve a 25 percent CAGR, nearing $1 trillion by FY29, driven by the desire for secondary residences and larger properties, consequently boosting household product sales. Moreover, private consumption, comprising 63 percent of the GDP in 2023, positions India to become the third-largest consumer market globally by 2030. Enhanced credit accessibility is empowering young consumers to invest in high-end and niche household items, emphasizing quality and customization. In tier 2 and 3 cities, rising disposable incomes and evolving consumer preferences for premium goods are propelling market growth. Consumers' increasing engagement in home renovations is driving the renovation market's projected growth to US$14.3 billion by 2027. Additionally, the influential roles of interior designers and social media influencers are shaping consumer choices, inspiring buyers with design trends and innovative materials. Lastly, government initiatives such as the PLI scheme, PMAY, SMC, UJALA, and PM Mitra are significantly boosting capacity, stimulating demand, and attracting investments in the home and household sector, aligning with the shifting consumer preferences towards quality and customization.
The future of the home and household market in India appears promising, with a confluence of factors propelling its growth trajectory. As businesses navigate these opportunities and challenges, staying attuned to consumer preferences, embracing innovation, and leveraging evolving retail channels will be key to capturing the market's full potential.
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