India's home and household market is expected to reach $237 billion by 2030 at a compounded annual growth rate of over 10% fuelled by increasing disposable income, shifting consumer preferences and a growing focus on comfort and convenience across product categories, according to a report by Deloitte.
The report, Powering Consumption Growth-India's Home and House Market, launched at the two-day event MAPIC India 2024, which began here on Wednesday, also said that the home and household markets are witnessing strong demand, particularly in Tier 2 and Tier 3 cities that are emerging as growth hubs.
It also said that omnichannel retail and e-commerce are helping businesses connect with consumers, expanding their reach beyond urban centres.
Stating that factors such as high disposable incomes, the rise of digital platforms, easy access to credit, and young consumers seeking modern designs, home renovations and personalisation, which provide tailored offerings to consumers, are driving the demand, it said, while the home and household industry are expanding rapidly, there are still limitations to overcome.
After-sales support, warranty worries and the need for a comprehensive omnichannel strategy are all significant issues for businesses to handle.
"India's home and household market is witnessing a remarkable evolution, where consumers are gravitating towards premium and branded products, with businesses increasingly adopting a consumer-first approach.
There is a deeper focus on consumer experiences and design-led product innovation," said Anand Ramanathan, Partner for consumer products and retail sector leader at Deloitte India.
Social media and advanced technologies enable companies to precisely target and engage their audiences, making the market more dynamic and responsive to changing needs, according to him.
According to the report, sustainability is becoming a central concern for Indian consumers, with rising demand for energy-efficient appliances and eco-friendly kitchenware and amid this manufacturers are increasingly investing in water-saving bathroom fittings, sustainable kitchen solutions and energy-efficient technologies to cater to eco-conscious consumers.
This trend, coupled with government policies such as the PLI scheme, Pradhan Mantri Awas Yojana, SMC, UJALA and PM Mitra, is driving demand and attracting investments in the home and household sector, it said.
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, it stated.
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