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Consumer Industry in India

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CONSUMER INDUSTRY OVERVIEW-2020

Statistics, news & updates: everything you need to know about the Consumer Industry in India

Snapshot

  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats

Summary

The durables market of Consumer industry in India is broadly segregated into urban and rural markets and is attracting marketers from across the world. In fact, the maximum consumer spending is likely to occur in food, housing, consumer durables, transport and communication sectors. Additionally, the Fast-moving consumer goods (FMCG) sector is the 4th largest sector of the Indian economy. Besides, Consumer electronics exports from India reached Rs 3,154.06 crore. Growing awareness, easier access, and changing lifestyles are the key growth drivers for the consumer market. 

Covid Impact

We are witnessing a paradigm shift in consumer behavior, businesses, and business models, which will result in the decline of some businesses and the slowing of others.

 

Consumer purchasing habits are also expected to change in two ways.

  • Consumers will make every effort to reduce their trips to supermarkets.
  • Online shopping will become the new norm.
The impact of Covid on the FMCG sector in India can be easily noticed as there is a decline in growth from the second to the third quarter of 2020 from 7.3% to 6.6% respectively. Organizations that can adapt quickly to changing demand patterns and demonstrate agility in thought and execution will gain market advantage. The statistics below are therefore taken from Industry data available pre-Corona virus impact.

Market Stats

  • The growth rate of consumer durables industry across India was estimated to be 15% from the fiscal year 2015 to 2020, therefore up from about 9% from the fiscal year 2010 to the fiscal year 2015.
  • Besides, the forecasted growth rate of the consumer durables industry in India between financial years 2017 and 2022, by the appliance. During this period, the air coolers market in India was forecasted to grow by around 18%.
  • As a matter of fact, the rural FMCG market in India is expected to grow to US$ 220 billion by 2025 from US$ 23.6 billion in FY18.
  • The online FMCG market is forecasted to reach US$ 45 billion in 2020 from US$ 20 billion in 2017.
  • Moreover, the Indian electronics market is expected to grow at 41 per cent CAGR between 2017-20 to reach US$ 400 billion.
  • The television industry in India is however, projected to reach Rs 955 billion (US$ 13.66 billion) in CY2021.
  • India is thus expected to have 829 million smartphone users by 2022.

Map – Industry Clusters

Growth Drivers

  • Fast-moving consumer goods (FMCG) sector as a matter of fact, is the 4th largest sector in the Indian economy
  • Semi-urban and rural segments are growing at a rapid pace. Therefore, FMCG urban segment witnessed growth rate of 8 per cent. Alternatively, rural segment grew at 5 per cent in quarter ended in September 2019.
  • In fact, the Government of India has allowed 100 per cent Foreign Direct Investment (FDI) under the automatic route in Electronics Systems Design & Manufacturing sector
    Because of increasing electrification of rural areas and wide usability of online sales would also aid growth in demand too.
  • Additionally, the sector has a huge untapped market for appliances like air conditioners (AC), washing machine, refrigerators.

Key Players in India

National

  • Emami
  • Itc
  • Dabur
  • Bluestar
  • Havells
  • Bajaj
  • Bata India
  • V Mart
  • Reliance fresh
  • Future retail
  • Patanjali
  • Spencers
  • Big Bazaar
  • Dmart
  • Lifestyle.

International

  • Xiaomi
  • Bosch
  • Haier
  • LG
  • Samsung
  • Philips
  • Walmart
  • Amazon

Sub-Industries

  • Apparel & luxury goods
  • Consumer electronics
  • FMCG
  • Household & Personal care
  • Household durables
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