The belief that India's consumption is stalling and is capped by a small minority is becoming outdated.
India’s D2C market is booming, growing from ~US$ 16.9B in FY23 to an expected ~US$ 61.3B by FY27.
What's driving this growth?
Marketplace expansion, technology adoption, and savvy marketing strategies. But success isn’t guaranteed. Brands must overcome challenges like OEM dependency, high acquisition costs, and brand loyalty issues.
65%
of D2C brands adopted AI & analytics in 2023.
2.3B
D2C shipments are expected to increase from ~0.6B in 2023 to ~2.3B in 2027
30%
of India's GDP (estimated at US$ 3.4 trillion in 2023) is contributed by retail.
61.3B
India D2C Segment Specific Deep-Dives
Electronics
India D2C electronics market is expected to grow at ~40% CAGR from FY23-27. The market size for electronics is expected to grow from USD 1.8 billion in FY23 to USD 6.9 billion by FY27.
Increased demand for premium products
Rising Urbanisation
Increase in affordability
Local manufacturing
Beauty & Personal Care
India D2C Beauty & Personal Care is expected to grow at a CAGR of ~36% from FY23-27. The beauty & personal care market is expected to grow from USD 2.2 billion in FY23 to USD 7.6 billion by FY27.
Leveraging digital channels & technology
Increasing demand for sustainable products
Increased R&D in product awareness
Expansion of men's grooming
Fashion
India D2C fashion market expected to grow at a CAGR of ~35% from FY23-27. Market size expected to grow from USD 4.6 billion in FY23 to USD 14.9 billion by FY27.
Sustainable fashion
Celebrity & influencer owned labels
Technology integration
Increase in affordability
Grocery
India D2C grocery market is expected to grow at a CAGR of ~41% from FY23-27. Market size expected to grow from USD 6.7 billion in FY23 to USD 26 billion by FY27.
Subscription models
Transparency in product offerings
Fresh offerings
Conscious snacking options
