The home and household market is witnessing strong demand, particularly in Tier 2 and Tier 3 cities
New Delhi: Deloitte India’s report projects that India’s home and household sector will reach approximately $237 billion by 2030 at a CAGR of over 10%. The growth is fueled by increasing disposable incomes, shifting consumer preferences, and a growing focus on comfort and convenience across product categories.
The home and household market is witnessing strong demand, particularly in tier 2 and 3 cities, which are emerging as growth hubs. High disposable incomes, the rise of digital platforms, easy access to credit, and young consumers seeking modern designs, home renovations, and personalization are key drivers.
While the industry is expanding rapidly, there are still challenges to address, such as after-sales support, warranty concerns, and the need for a comprehensive omnichannel strategy. Sustainability is also becoming a central concern for Indian consumers, with rising demand for energy-efficient appliances and eco-friendly kitchenware. Manufacturers are investing in water-saving bathroom fittings, sustainable kitchen solutions, and energy-efficient technologies to cater to eco-conscious buyers. This trend, coupled with government policies such as the Production Linked Incentive (PLI) scheme, Pradhan Mantri Awas Yojana (PMAY), UJALA, and PM Mitra, is driving demand and attracting investments.
Anand Ramanathan, Partner and Consumer Products and Retail Sector Leader at Deloitte India, commented “India’s home and household market is witnessing a remarkable evolution, where consumers are gravitating towards premium and branded products. There is a deeper focus on consumer experiences and design-led product innovation. Social media and advanced technologies enable companies to engage audiences more dynamically.”
Factors Driving Growth
- Premiumisation: Growing demand for luxury homes and innovative branded products is pushing companies to enhance consumer engagement and brand strength.
- Value Segment: The middle-class market drives volumes, offering significant potential for brands to expand their presence.
- Emerging Channel Play: The shift towards omnichannel and quick commerce is transforming how consumers shop, making it essential for businesses to provide seamless experiences across digital and physical platforms.
- Technology: Brands are using VR, AI, and personalized experiences to enhance consumer satisfaction and brand advocacy.
Decoding Consumer Dynamics
Higher disposable incomes, dual-income households, and easier credit access have lowered the average age of first-time homeowners. Younger buyers, who prefer modern designs, are investing in distinct categories such as new home setups, renovations, and replacement purchases.
Consumer Durables and Appliances
The consumer durables and appliances sector is expected to grow at a 7% CAGR and is projected to reach US$97 billion by FY30. The organised sector holds about 70% of the market share, with large appliances (white goods) contributing 60–65%, and small appliances accounting for 35–40%.
Furniture and Furnishings
This sector is expected to grow at over 10% CAGR, reaching US$62 billion by FY30. It remains predominantly unorganised, with 80% of the market dominated by local players. Wooden furniture leads the segment with 65% of the market, followed by metal (17%) and plastic (9%).
Bath and Kitchen Fittings
Expected to grow at 16% CAGR, the bath and kitchen fittings sector will reach US$39 billion by FY30. The organized segment is led by international brands, while the unorganised sector offers cheaper products catering to price-sensitive buyers.
Lighting and Décor
The lighting and décor segment is expected to grow at an 8% CAGR and reach US$4 billion by FY30. The LED segment dominates 80% of lighting, with the decorative lighting segment being highly unorganised.
Kitchenware
Projected to grow at a 13% CAGR, the kitchenware sector is expected to reach US$10 billion by FY30. The unorganised sector still holds a 60% share, particularly in rural and price-sensitive markets.
Home Safety
The home safety sector is expected to grow at an 11% CAGR, reaching US$4 billion by FY30. The market is largely unorganised, with traditional solutions prevailing, although smart safety products are gaining traction in urban centers.
Re-imagining the Role of Technology
The evolving consumer technology landscape is transforming the home and household sector, with advancements in Gen AI, IoT, AR/VR, and the Metaverse. These technologies are delivering personalized, immersive, and human-centric experiences, revolutionizing how consumers enhance convenience and efficiency in their daily lives.
Conclusion
The Indian economy’s recovery will reach beyond major cities to include Tier 2 and Tier 3 cities. To thrive in the home and household sector, businesses must adopt a consumer-centric approach, accurately targeting emerging trends and preferences of modern-day consumers.
