Urbanization and Omnichannel Retail to Propel India’s Home and Household Market to $237 Billion by 2030: Deloitte Report

India's home and household market is on the cusp of significant growth, expected to reach a whopping $237 billion by 2030. A recent report by Deloitte India titled “Unlocking Opportunities in India’s Home & Household Market Thought Leadership” highlights the pivotal factors contributing to this growth. These include rapid urbanization, the rise of omnichannel retail, changing consumer lifestyles, and increased disposable incomes. As the market evolves, sectors such as furniture, home renovation, kitchen fittings, and home décor are witnessing substantial growth. 

Key Drivers of Growth: Urbanization and Changing Lifestyles

One of the core elements driving the expansion of India’s home and household market is the nation’s rapid urbanization. With a significant proportion of the population moving to urban areas, there is a rising demand for modern, functional, and aesthetically pleasing living spaces. Additionally, the ongoing shift in work culture, with more people opting for hybrid or remote working models, has led to an increase in demand for home office setups. This shift is particularly prominent in Tier 2 and Tier 3 cities, where young professionals with growing disposable incomes are investing in home makeovers and renovations.

The report emphasizes that, as of 2023, the home renovation market is valued at $7 billion and is expected to reach $14.3 billion by 2027. This surge is partly driven by the desire to create more comfortable and functional living spaces, particularly as more time is spent indoors due to hybrid work arrangements. The demand for larger homes and second properties has also spurred an increase in home renovations, with many homeowners opting for premium furnishings and fixtures.

Rising Real Estate Sector to Fuel Market Expansion

India’s booming real estate sector is another key factor in the growth of the home and household market. According to the Deloitte report, the real estate market is projected to grow at a CAGR of 25%, reaching $1 trillion by FY29. This growth is likely to have a direct impact on the demand for home and household products, including furniture, fittings, appliances, and décor. The increasing trend of purchasing larger homes, second homes, and premium properties is expected to drive higher spending on home interiors and renovations.

As more consumers purchase larger homes, there is a noticeable shift toward investing in luxury and high-quality products, particularly in the kitchen, bathroom, and living room segments. In addition, the growing demand for second homes in locations such as hill stations and coastal areas is also fueling the demand for premium household products.

Furniture and Furnishings to Witness Significant Growth

Furniture and furnishings are set to be the biggest beneficiaries of the home and household market boom. According to Deloitte’s projections, the furniture and furnishings sector will grow at a CAGR of 10%, reaching $62 billion by 2030. While the sector is still dominated by unorganized, local players, especially in Tier 2 and Tier 3 cities, this landscape is slowly shifting. Local manufacturers offer affordable and customizable options that appeal to a broad range of consumers, making them highly competitive against organized market players.

Additionally, the demand for rental furniture is gaining momentum, particularly among young professionals, expatriates, and those who frequently relocate. Rental furniture offers flexibility, affordability, and convenience, making it an attractive option for those who do not wish to invest heavily in home furnishings.

The Interior Services Boom

Deloitte's report also highlights the growing demand for interior services, with the market expected to expand at an 18% CAGR, reaching $7 billion by FY30. Consumers are increasingly seeking professional interior designers to help them create personalized and functional living spaces. This is particularly evident in urban areas, where busy lifestyles and a focus on aesthetics drive the need for professional assistance in home design.

The most frequent renovations focus on bedrooms and living rooms, with homeowners generally allocating budgets of under ₹5 lakh. The growing emphasis on ergonomics due to hybrid work models has led to increased demand for home office solutions, including adjustable furniture, lighting, and storage solutions tailored for working from home.

Smart Homes and Safety Solutions on the Rise

As urban areas continue to grow and evolve, there has been a notable increase in the adoption of smart home safety products. Home security systems, including smart locks, surveillance cameras, and integrated alarm systems, are becoming more prevalent in urban households. With safety and convenience being top priorities, these smart products have gained significant traction, especially among tech-savvy consumers.

The Deloitte report points out that the integration of smart technology into homes is no longer limited to security. Products such as smart lighting, thermostats, and home assistants are becoming more common, with the potential to further drive the growth of the home and household market.

The Role of Omnichannel Retail in Market Expansion

Another important aspect driving the expansion of India’s home and household market is the rise of omnichannel retail. Consumers are increasingly turning to a combination of online and offline platforms to purchase home products, leading to a more diversified and accessible market. The omnichannel approach allows consumers to compare prices, read reviews, and make informed purchasing decisions with greater ease, while also providing the tactile experience of visiting physical stores.

With e-commerce giants and local retailers alike investing in digital platforms, the omnichannel model is making it easier for consumers to access a wide range of home products, from basic furniture to high-end décor items. This shift is contributing to the overall growth of the sector by expanding reach and customer engagement.

A Promising Future for India’s Home and Household Market

Deloitte’s report paints a bright picture for the future of India’s home and household market. The confluence of urbanization, rising disposable incomes, omnichannel retail, and shifting work cultures has created a fertile ground for growth. As real estate continues to expand and consumers seek more personalized and functional living spaces, the market is poised to reach new heights by 2030. The rise of smart homes, ergonomic furniture, and premium home renovation trends ensures that this sector will remain dynamic and responsive to changing consumer needs.