Mega to Micro: Trends Shaping India’s Consumers

Introduction

Scope

Key findings

Socio-Economic Backdrop

India now world's third largest economy in PPP terms

Working population makes up nearly two-thirds of India’s population

Increasing consumer appetite for spending and saving

16 million more middle-class households by 2030

Share of wallet shifts towards discretionary spending

Consumers increasing spending on lifestyle products and services

Understanding Indian Consumer

So who are these consumers?

Consumers contributing the most to discretionary spending

Packaged food appeals to time-starved consumers

Adapting to local tastes remains key in food and beverages

Changing lifestyles taking their toll…

…and driving strong growth in health and wellness products

A closer look at “Undaunted Strivers”

Changing food preferences

The emergence of the young and affluent

A closer look at “Restless Spenders”

Restless spenders are image-conscious

Restless spenders also drive growth of wellness products

All that glitters: The luxury wave

The Indian consumer is not just about spending…

…hence, Secure Traditionalists remain the key consumer segment

Gold and real estate remain top priorities among savers

Urbanisation and Connectivity

Over 1/3 rd of India’s richest households will reside in 41 major cities

The rise of the “mega region”

Urban Indians are now travelling more

Globetrotting Indians drive demand for new products and concepts

Yet India’s “soul” remains in its villages

Focus on traditional channels key to success in rural markets

Internet penetration increasing digital marketing across India

Young consumers plan to further increase tech spending

Consumers prefer to gather information before buying in-store

The rapid rise of vehicle ownership leading to increasing mobility

Limits to Growth

Despite reforms, business environment remains difficult

Tackling resource crunch a major hurdle

Marketplace is set to fragment further

Report Definitions

Data parameters and report definitions

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