CONSUMER SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Consumer Industry in India
Summary/Snapshot
Consumer Industry
- The government authorized 14 IT hardware firms under the production linked incentive (PLI) plan in July 2021. These businesses are anticipated to generate more than US$ 21.64 billion in total production during the next four years.
- Air conditioners are expected to reach 165 lakh units by 2025, up from 65 lakh units in 2019, and refrigerators are expected to reach 275 lakh units by 2025 from 145 lakh units in 2019.
- By 2025, the business is predicted to create half a million new jobs, with total foreign exchange inflows of $75 billion and investments of more than $1 billion.
- Many domestic and Chinese manufacturers are investing in India to set up manufacturing plants that will produce more inexpensive items as part of the “Make in India” campaign.
- In 2022, the Indian Appliance and Consumer electronics (ACE) market is predicted to grow at a 9 per cent CAGR to US$ 48.37 billion.
- By FY24, India’s demand for electronics hardware is estimated to reach $400 billion.
Growth Drivers
- Consumer durables output climbed by 98.2 per cent in May 2021, compared to a fall of 70.3 per cent in May 2020.
- From FY20 to FY21, the DTH business is predicted to increase by 6% to US$2.9 billion.
- By 2025, the packaged food market in India is predicted to quadruple to US$ 70 billion.
Sub industries
- Apparel & luxury goods
- Consumer electronics
- FMCG
- Household & Personal care
- Household durables
Opportunities
- Untapped market potential for consumer appliances. Penetration for air conditioner was only about 5%.
- Consumption expenditures will rise by a factor of three to reach 4 trillion by 2025.
- The rural FMCG market is expected to expand to USD 220 billion by 2025.
- The toys industry in India has the potential to grow to $2-3 bn by 2024.
Challenges
- Changes in consumer habits are one of the most difficult challenges facing the consumer industry.
- Markets are becoming more volatile as a result of overall economic uncertainty and supply chain instability.
- Companies face the issue of meeting worldwide pricing points as a result of global competition.
Key Investment Opportunities
- Organic food
- Healthy beverages
- Cruelty-free cosmetics
- Household Appliances
- Electronic Appliances
Recent Developments
- Indian appliance and consumer electronics (ACE) market is expected to increase at 9% CAGR to reach US$ 48.37 billion in 2022.
- The government anticipates that the Indian electronics manufacturing sector will reach US$ 300 billion by 2024–25.
- Demand growth is likely to accelerate with rising disposable income and easy access to credit.
Rentals of home appliances are growing in urban areas due to free add-on services like relocation and periodic maintenance, which are not available in the ownership model.
India’s consumer digital economy is projected to reach US$ 800 billion by 2030, from US$ 85-90 billion in FY20, driven by increase in online shopping.
Apple is planning to increase its manufacturing production outside of China, with India and Vietnam both likely to benefit from this decision.
Key Players in India
National
- ITC
- Dabur
- Bajaj
- Godrej Consumer Products Ltd
- Patanjali
- Varun Beverages Ltd
- Marico Ltd
- Havells
- Emami
International
- Nestlé
- Procter & Gamble
- Unilever
- AB InBev
- LG
- L’Oréal
- Mondelez International
- Kraft Heinz
- Philips
Map Clusters
We have completed over 8,000 projects worldwide & 1500 projects in India in nearly every business segment.
WINE & SPIRITS / FOOD & BEVERAGES / AGRIBUSINESS / ENERGY & RESOURCES / TRANSPORTATION / INDUSTRY / TECHNOLOGY / LIFE SCIENCES & HEALTH / SERVICES / CONSUMER & LUXURY GOODS / PUBLIC & PRIVATE INSTITUTIONS