India's consumption story remains strong, but rural demand faces inflation risks: Report
India's consumption growth is projected to be robust, driven by a young population and digital adoption. Despite this, rural income pressures and food inflation could pose challenges for near-term demand. Premium products are expected to outperform mass-market categories as consumer preferences evolve. The impact of Super El Nino may exacerbate rural demand issues due to agricultural pressures.…
New Delhi: India's consumption growth is expected to remain strong in the coming years, driven by a youthful population, rising aspirations, premiumisation, and increasing digital adoption, according to a research report by 360 ONE Capital. However, rural income pressures and food inflation could pose challenges to near-term demand, the brokerage cautioned.
Despite the recent surge in festive-period demand, the firm maintains a bullish outlook on the sector, citing the potential for penetration gains as per capita income rises. The report identified category formalisation, premiumisation, digital adoption, quick commerce, and a focus on health and wellness as key trends shaping the consumer landscape over the next decade.
Gen Z consumers, comprising about 45% of the consumption market, are also expected to play a significant role in shaping future demand. Companies will need to adapt to evolving consumer preferences and compete effectively against new direct-to-consumer brands and large conglomerates, the brokerage concluded.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
