New Delhi, Aug 12
Technical consumer goods (TCG) market in India recorded an 11 per cent increase in value and a 1 per cent rise in volume during the first half of 2024, compared to the same period last year, a report showed on Monday.
Small domestic appliances (SDA) led with a 29 per cent increase in value, reflecting heightened consumer interest in home convenience products, said market research firm GfK.
India has emerged as the fastest-growing large market in the technical consumer goods industry.
"Valued at around Rs 2 lakh crore ($23 billion), the market saw over 125 million units sold in the first half of 2024. This represents a notable 11 per cent increase in value in the offline channel during H1 2024," said Anant Jain, Head of Customer Success-India, GfK, an NIQ company.
The consumption growth underscores the diverse and dynamic nature of the Indian TCG industry, driven by evolving consumer needs and preferences.
"This growth in 2024 surpasses the growth achieved in 2023 by 3 percentage points," Jain added.
Major domestic appliances (MDA) followed with a robust 18 per cent value growth, indicating a strong demand for essential household items. This growth is 3 times of growth in 2023 over the previous year.
Key categories leading to this growth in MDA categories are air-conditioners and refrigerators with a growth of 30 per cent and 7 per cent, respectively.
Despite these gains, the relatively low penetration of these products presents significant opportunities for industry expansion, said the report.
The telecom (smartphone and mobile phones) segment experienced a 6 per cent reduction in volume, it was offset by a substantial 10 per cent increase in overall value. In particular, the smartphone segment registered a 12 per cent increase in value," the report mentioned.
The middle class in India is set to outspend the upper class by 2030, with half of the world's population expected to belong to the middle class, predominantly driven by growth in Asia.
With a significant shift in consumer preferences, smartphones with 256GB+ storage have registered a 140 per cent growth, reflecting the increasing demand for advanced technological capabilities and high-end features, said the report.