Rising Demand for Consumer Durables as Indian Households Shrink: Report

Nuvama's report highlights that as Indian families become smaller, a rise in separate households is driving demand for consumer durables. Despite low penetration compared to developed nations, increasing household numbers, affluence, and changing lifestyles contribute to a projected 11% annual market growth to Rs 3tn by FY29.

A recent report by Nuvama reveals that the trend of shrinking Indian families is spurring a rise in separate households. This shift is driving the demand for consumer durable products like home appliances across the nation.

The report notes a significant uptick in households alongside reduced average family sizes. This has spurred consumption of essential consumer durable products. While consumer durables like refrigerators and air conditioners are less common compared to developed countries, the increasing number of households, rising affluence, and evolving lifestyles are boosting demand.

Additionally, the sector is set to grow 11% annually, reaching Rs 3tn by FY29, even amidst pandemic challenges. Technological innovations leading to smart, energy-efficient appliances and shrinking replacement cycles for gadgets are trends fueling this growth.

(With inputs from agencies.)