Consumer Market in India Set to Become World’s Second-Largest by 2030

The latest Edelweiss Mutual Fund report expects India's consumer market to increase by 46% by 2030, establishing the country as the second-largest consumer base worldwide. Rising consumer spending will drive a 46% market expansion through 2030 as India’s population approaches $4.3 trillion from the current $2.4 trillion.

India’s middle and upper-middle-income population expansion pushes forward consumer market growth since more people now spend their available money as they choose. The country’s young population, averaging 28 years of age, stands out from China’s median age of 39 and the US’s median age of 38, thereby establishing India as a leading global consumption market. The global workforce will contain 20 percent of Indian working-age people when the population reaches one billion in 2030.

By 2031, India's dependency ratio is expected to drop from 47% in 2023 to 31%, increasing disposable earnings. Meanwhile, the number of working women has increased from 23 percent in 2018 to 42 percent in 2024, increasing family earnings and the need for high-quality products.

Demand trends built on unbranded and unorganized retail are also transitioning to product categories like branded and organized retail with urbanization, digital transformation, financial inclusion, etc. This transition is expected to unlock $600 billion in additional spending. Furthermore, quick commerce is booming, while rural demand for consumer durables remains an untapped growth frontier.

With an 8.7% CAGR in per capita income since 2015, India’s consumer economy is on a historic trajectory, setting the stage for unprecedented market expansion.