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Consumer Goods and Retail Sector

India currently is the fourth largest retail market in the world. It is expected that the Indian retail industry will grow to 1.5 trillion dollars by 2030. The consumer base continues to grow with over 500 million middle-class consumers. With 50% of the population being under 25 years, a digitally present middle class is increasing the consumption

Consumer Goods and Retail Sector - Doing business In India
Consumer goods and retail industry Opportunities in India

/ Overview of India's Consumer Goods and Retail Sector

The Indian e-commerce industry is expected to reach the $120–140 billion mark by 2025, with a CAGR of 19–22%, making India one of the fastest growing e-commerce markets globally. Non-metro cities are one of the massive contributing factors to this customer base growth. With increasing digital adoption, cost-efficient customer acquisition in emerging urban centers, and strong policy backing, India’s e-commerce sector offers a strategic growth platform for mid-sized international companies.

40%+

Urbanization & Population Growth

$1.41 tn

Market Size

$71 bn

FDI (till Jan 2025)

10%

Economic Growth Rate

/ Growth Drivers

Increased internet users As of early 2025, India has approximately 806 million internet users, representing 55.3% of the total population from 700 million in 2021.

Delivery to Remote locations It is becoming easy for online retailers to deliver products to remote locations because huge government investment in infrastructure.

Demand for technical textiles  is increasing due to growth in end-user usage in other sectors such as defense, healthcare and automotive.

Average age in India is 29 India has the youngest population around the globe which gives an advantage to industries like consumer goods, tech.

/ Key Investment Opportunities

Consumer Industry

Health & wellness FMCG growing at 15% CAGR, to surpass $30B by 2025.

India’s D2C market to hit $60B by 2025, up from $12B in 2021. investment for 1.56 million new homes

Fast D2C adoption in personal care, fashion, health supplements, and electronics categories.

Luxury market to reach $8.5B by 2025, driven by fashion, watches, autos, and accessories.

E-Commerce Industry In India - Investment Opportunities

Retail Industry

 Organized retail to reach $230B by 2025, growing 18–20%, driven by Tier 2/3 expansion.

Luxury retail to hit $8.5B by 2025, fueled by 1.4M HNIs and premium store demand.

Food retail to reach $850B, fashion $115B by 2025, boosting modern chains and fast fashion.

Electronics to reach $155B, beauty $28B by 2025, driving growth in specialty and online retail.

Consumer Industry in India 2025

E-commerce Industry

India’s e-commerce market is projected to reach $133 billion by the end of 2025, growing at a 19.5% CAGR

65% of new e-commerce consumers in 2025 are projected to come from Tier 2+ cities. These cities are driving 60% of the gross merchandise value growth in sectors like fashion, personal care, and home essentials.

The quick commerce market (delivery within 10–30 minutes) is estimated to reach $5.5 billion by 2025, opportunities lie in Micro-warehouse networks, last-mile tech.

Opportunities lie in platforms enabling peer-to-peer selling, influencer-driven shopping, and short-video-based e-commerce.

Retail Industry Overview and opportunities in India

/ How We Can Help

Foreign businesses, especially mid-cap companies and SMEs, seeking to enter or expand in India’s manufacturing sector can benefit from:
Build - Hire the right people & build your local presence
Buy - M&A & integration
Advice - Strategy and Operational Efficiency

NEWS & UPDATES

/ Ready to grow in India?

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