The Indian ConsumerTech market is projected to reach $300 billion by 2027, growing at a compound annual growth rate (CAGR) of 25 per cent, according to a report released on Friday. The report, a collaboration between Chiratae Ventures, Google, and 1Lattice, highlights high-potential categories in the domestic market, such as health foods, pet care, and "athleisure."
Health foods, with a CAGR of 20 per cent, and pet care, with a 17 per cent CAGR, are identified as fast-growth subsegments within the emerging brand segment. "Athleisure" is projected to reach $7 billion by 2028, presenting opportunities for new startups.
The report also highlights categories like lab-grown diamonds, millet-based foods, and Ayurveda, which have potential for large export markets. Success in these categories will depend on technological innovation, research and development, and effective brand building and communication to appeal to global markets.
Anoop Menon, ConsumerTech lead for Chiratae Ventures, stated that India has witnessed a wave of new-age brands in the past 5-6 years, and the report provides a framework for success in specific categories. The report emphasizes the potential for creating impactful brands that address unmet consumer needs while leveraging innovative business models.
The report also acknowledges the changing dynamics of distribution in India, with D2C brands redefining industry standards by creating more agile and efficient models. This shift is driven by rising customer expectations and the evolving ways brands reach consumers.