India to Become Second-Largest Consumer Market Globally by 2030

New Delhi [India], : According to the Edelweiss Mutual Fund report, India's consumer market is expected to expand by 46% by 2030, making it the second-largest globally in terms of consumption. The country's growing middle and upper-income population, rising incomes, and rapid urbanization are poised to drive significant growth in the sector.

Projections indicate that consumer spending in India will rise to USD 4.3 trillion by 2030, up from USD 2.4 trillion in 2024. This growth is largely fueled by the expanding middle and upper-income population, leading to higher purchasing power and increased discretionary spending.

India's median age of 28 years - significantly lower than China's 39 years and the US's 38 years - positions the country as a major driver of global consumption. By 2030, the working-age population in India is expected to reach 100 crore, accounting for one-fifth of the global workforce.

The increasing participation of women in the labour force - rising from 23 per cent in 2018 to 42 per cent in 2024 - has led to higher spending on lifestyle and premium products, strengthening India's consumer economy. Urbanization, digital transformation, and financial inclusion are rapidly reshaping consumption patterns.

Two significant shifts in consumption are expected: a transition from unbranded to branded products and from unorganized to organized retail. This shift is projected to unlock USD 600 billion in additional consumer spending in the coming years.

The growth of the quick commerce sector, driven by urbanization, rising consumer expectations, and faster, localized deliveries, is poised for rapid expansion. Meanwhile, rural demand for consumer durables remains an untapped opportunity due to low penetration, which will become a key driver of consumption growth as digital access improves.

India's per capita income has been growing at 8.7 per cent CAGR since 2015, fuelling increased discretionary spending. With these factors in place, India's consumer market is on track for historic expansion by 2030, cementing its position as a major player in the global consumption landscape.