The Changing Consumption Trend in India

In a previous blog, I delved into the intriguing concept of the Consumption Revolution. Yet, I left a pivotal question unanswered: What underpins my firm belief that we are poised on the precipice of a transformative consumption revolution?

The year 2019 etched a significant mark in India's economic narrative – the per capita GDP surged beyond the $2000 benchmark. This achievement stands as a resolute testament to a maturing economy, characterized by an expanding middle class and amplified disposable incomes coursing through the populace.

Recent GDP per capita trends further solidify this narrative:

• India's GDP per capita for 2022 was $2,389, showcasing a robust 6.72% surge from 2021.
• In 2021, the GDP per capita hit $2,238, marking a notable 16.98% escalation from the preceding year.
• A slight dip of 6.68% saw India's GDP per capita in 2020 at $1,913, following the remarkable milestone of 2019.
• The year 2019 witnessed India's GDP per capita at $2,050, registering a commendable 3.84% leap from the preceding year.

As income levels ascend, a conspicuous shift ripples across consumption patterns. Consumer preferences pivot from the realm of basic necessities, embracing the allure of premiumization. This shift unfurls a tapestry of fresh consumption avenues, opening doors to intriguing opportunities.

Discretionary Spending - Bolstered by augmented earnings, individuals are channeling larger portions of their income into discretionary spending and the pursuit of premium goods and services, enhancing their way of life.

Preference for Branded Products - A preference for branded merchandise is burgeoning among consumers. Factors like brand recognition, quality assurance, and the cachet linked to renowned labels are assuming pivotal roles in their purchase choices.

Food Consumption Patterns - A metamorphosis in dietary preferences is unfolding. Consumers are diversifying their culinary horizons, incorporating a spectrum of processed and convenience foods. Simultaneously, there's an upswing in demand for dining out and the convenience of food delivery services.

Healthcare and Wellness - A surge in allocation towards healthcare services, fitness endeavors, organic and health-centric food options, and wellness products is discernible.

Housing and Furnishing Trends - The integration of new technologies is propelling consumers towards embracing cutting-edge electronic appliances, the latest household innovations, and smart domestic gadgets that optimize daily living.

Travel and Tourism - A burgeoning desire to explore novel destinations, immerse in diverse cultures, and partake in leisure activities is palpable. This ardor spans domestic and international travel, adventure tourism, luxury escapades, and rejuvenating wellness retreats.

Spending on Entertainment - An amplified appetite for entertainment options is evident. Consumers are allocating more resources towards indulging in movies, concerts, sporting spectacles, amusement parks, gaming, OTT platforms, and an array of recreational pursuits.

Transportation Preferences - A gradual transition from public transportation to private vehicles is underway. This pivotal shift is stoking heightened sales of cars, motorcycles, and ancillary services, reshaping the mobility landscape.

In this enthralling era of possibilities, the contours of the Consumption Revolution are distinctly emerging. We are poised to witness an exciting time between evolving consumer desires and an evolving market.