New Delhi: A research report released on Friday predicts that India’s consumer technology industry is on track to reach $300 billion by 2027, growing at a compound annual growth rate (CAGR) of 25%.
The study, conducted by Chiratae Ventures in partnership with Google and 1Lattice, identified high-growth domestic market segments such as pet care, health foods, and “athleisure”—a hybrid category of sports apparel used for everyday wear.
Fast-growing subsegments include health foods, which are expanding at a 20% CAGR, and pet care, which is growing at 17% CAGR. The report projects that by 2028, the athleisure market could be valued at $7 billion, offering significant opportunities for new businesses.
Additionally, the study highlighted emerging sectors such as Ayurveda, millet-based diets, and lab-grown diamonds, noting their export potential and the role of R&D and technological innovation in ensuring market success.
Anoop Menon, ConsumerTech head at Chiratae Ventures, noted, “India has seen a rise in new-age brands over the last five to six years. We now have a clear framework for establishing a strong market presence in specific categories.”
The research also emphasizes the importance of efficient supply chains and distribution networks, which have long been a backbone of Indian commerce. However, it suggests that a deeper understanding of profit margins at different stages of the value chain would help entrepreneurs scale their businesses effectively.
With direct-to-consumer (D2C) brands redefining traditional distribution models, the industry is shifting away from a one-size-fits-all strategy. Abhilasha Jaju, Director of Financial Investors at 1Lattice, remarked, “D2C companies are reshaping industry norms, introducing more flexible and efficient business models.”
As consumer expectations evolve, India’s consumer technology sector is poised for unprecedented growth, driving innovation and fostering a dynamic business landscape.
