CONSUMER SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Consumer Industry in India
Summary/Snapshot
Consumer Industry
Indian Appliance and Consumer Electronics Industry market size is expected to nearly double in the next 3 years, reaching approximately US$ 17.93 billion by 2025.
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.
- 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 $1 billion.
- Many domestic and Chinese manufacturers are investing in India to set up manufacturing plants that will produce more inexpensive items as part of the “Make in India” campaign.
- The Indian mobile phone market is predicted to generate US$ 29.38 billion in revenue by FY26.
- By FY24, India’s demand for electronics hardware is estimated to reach $400 billion.
Growth Drivers
- With the initiative of “Make in India” campaign, many domestic and Chinese manufactures are investing in India to set up their manufacturing plants which would produce more affordable products.
- The Indian government distributed approximately US$ 9.51 million in fiscal incentives under the Production Linked Incentive (PLI) scheme for white goods during the last quarter of fiscal year 2024.
- 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.
- Multiple states have announced special incentives for consumer durable manufacturers, with incentives offered on capital expenditure, interest payments, land purchase etc. Special customized incentives also available for large and mega-investors across different states.
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
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