The home and household sector is expected to reach around $237 billion by 2030, growing at a CAGR of over 10 per cent, stated Deloitte India’s Powering Consumption Growth: India’s Home and Household market report. The growth, it added, will be 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. The demand growth is driven by 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.
Even as the home and household industry is expanding rapidly, there are limitations for businesses to handle, like after-sales support, warranty worries and the need for a comprehensive omnichannel strategy.
Further, sustainability is also becoming a central concern for consumers with rising demand for energy-efficient appliances and eco-friendly kitchenware. In line with this, 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.
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.”
In terms of channels, Deloitte said that 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, the report stated.
Key factors driving growth
Factors driving growth in the home and household sector are as follows:
- Rising disposable income: India’s per capita disposable income reached $2,500 in FY23, marking a 13 per cent 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 per cent CAGR, reaching approximately $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 per cent 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.
From: financialexpress
Financial News
