India’s robust economic growth and rising household incomes are expected to increase consumer spending to USD 3.6 trillion by 2020, said a FICCI-PwC report. According to the report, the maximum consumer spend is likely to be incurred on food, household and transport, and communication segments.
“The e-commerce market is projected to rise to USD 125 billion in terms of gross merchandise value (GMV) by 2020, growing at the rate of 31 percent,” it said. The packaged consumer goods sector is estimated to grow at 18 percent and cross USD 100 billion mark, it added.
Anurag Mathur, Partner and Leader – Consumer and Retail, PwC India, said: “India is in a strong position in the world where a growing consumption capacity, demographic shape and lifestyle changes will propel double digit growth for consumer business over the next decade.”
In the last few years, several small players have created new categories such as cold pressed juices, while other entrants include food tech startups such as Zomato, ayurveda companies like Patanjali and e-tailers such as Greendust.
“These new entrants are challenging the dominance and growth of leading market players. Market leaders are taking cognisance of this changing environment and trying to bring their companies out of their comfort zones to capitalise on these opportunities with agility,” it added.
Source: Money Control
Image Courtesy: indiaretailing.com