From consumer boom to local kiranas: Surprising insights from India’s growth story

Consumer Durable set to become big in India

Why so? Indians dont have as many electronics as people around the world as evidenced by low penetration data. While essentials such as refrigerators and washing machines see near-universal adoption globally (85-100%), India's penetration is just 40% and 20% respectively.

Similarly, modern conveniences like air conditioners (16%) and personal computers (13%) lag far behind, signalling immense growth opportunities in the Indian market.

The industry set to double in the decade. The Indian consumer durables market is set to grow from ₹176,000 crore in FY24 to ₹300,000 crore by FY29, reflecting a strong CAGR of about 11%.

Which category is the fastest growing?

While all categories show positive growth trends, room ACs lead with a surge in demand, highlighting untapped potential in climate control solutions. Refrigerators and brown goods continue to show steady adoption, while televisions and washing machines maintain slower but consistent growth. The industry overall presents robust expansion opportunities across categories for FY24-FY29.

Hotel on high growth path

Just like electronics, we have fewer hotels!

Indian metros have 2-3 times fewer hotel keys than international benchmarks, showcasing an under-penetrated hospitality market. This gap highlights a massive growth opportunity for the Indian hotel industry, particularly in business-centric cities like Hyderabad and Bangalore, where demand from corporate travellers is growing but remains underserved.

Kirana is still the King.

Quick commerce making strides but the Kirana is still king catering to 90%+ grocery sales. India's grocery market remains predominantly controlled by unorganised retail, with Kirana stores commanding an overwhelming 92.2% market share as of 2023.

Despite the gradual growth of organised channels, including brick-and-mortar stores (5.5%) and traditional e-commerce (1.3%), their penetration remains limited compared to the vast unorganised sector. Quick commerce, while still a niche segment with just 1.0% share, is emerging as a fast-growing channel fueled by the rising demand for instant deliveries in urban areas.