Over the last five years, Indians have consumed soft drinks – juice over tea , bought insurance products, spent on OTT subscriptions, audio and video gadgets, and kept pets at an accelerated rate.
According to a report by Redseer, the wanderlust bug has also really bitten, as travel spending has accelerated and is expected to continue to soar in the next five years. According to Mrigank Gutgutia, partner at Redseer Consulting, these spending patterns indicate growing affluence.
Now people are switching towards juice over tea
A rise in disposable income has led to an increase in Indians’ ability and capacity to buy such products. as per reports when these products start selling at a large scale, it indicates that consumption patterns have matured.
Over the past five years, basic spending on personal care, education, food, and clothing has grown moderately, but will continue to grow in the long run. Among the ‘others’ categories, Redseer points out, house expenses and tea consumption have seen slow growth and will continue to do so.
Taking the premium route and going digital
According to Redseer, there are consumption themes emerging across products and services, including premiumization in personal vehicles, electrification of two-wheelers, and travellers preferring ‘organized’ players.
Also, digital entertainment and fashion entering tier-2 cities are indications that consumption patterns are changing, says Redseer.
Macroeconomic conditions in the short term, however, have been bleak, which has affected the personal consumption of Indians, which has dipped to $2.2 trillion in FY23. However, it’s expected to reach $2.4 trillion in FY24.
Despite recent growth headwinds, product-oriented consumer internet sectors are expected to rebound steadily, according to the report.
In the first quarter of FY24, credit card spending, air travel, and vehicle sales show signs of recovery, according to Redseer. Most services except travel can expect normalized growth in the near future.
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