This propensity to consume is also propelling the real estate sector with a 25 per cent CAGR, building up to approximately $1 trillion by FY29.
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Bengaluru: India’s home and household sector is projected to reach $237 billion by 2030 at a compound annual interest rate (CAGR) of over 10 per cent, fuelled by increasing disposable incomes, shifting consumer preferences and a growing focus on comfort and convenience across product categories.
A report tabled on Wednesday by multinational consultancy firm Deloitte estimates that consumer durables and appliances will account for more than 45 per cent of this market, followed by furniture.
“Indian consumers are gravitating towards premium and branded products, with businesses increasingly adopting a consumer-first approach. To stay ahead, companies must embrace emerging trends like quick commerce, rethink their operating models and integrate innovation across the value chain—from products to post-sales services,” observed Anand Ramanathan, Partner, Consumer Products and Retail Sector Leader, Deloitte India,
Easier credit access is enabling young buyers to invest in premium and niche home products, putting the focus on quality and customisation. According to the report, young buyers, who prefer modern design, tend to invest in distinct categories, including new home setups, renovations and replacement purchases.
Both online platforms and physical stores are key in product discovery for home categories, with social media influencers and online comparisons driving choices in latest trends, prices and superior products, the report added.
“Social media and advanced technologies enable companies to precisely target and engage their audiences, making the market more dynamic and responsive to changing needs,” added Ramanathan.
Realty sector push
This propensity to consume is also propelling the real estate sector with a 25 per cent CAGR, building up to approximately $1 trillion by FY29. The demand for second homes and large properties, being the key drivers. Dual-income in households have also lowered the average age of first-time homeowners. Nearly 42 per cent of the respondents of the survey bought a new home in tier 2 and 3 cities for investment and leisure.