Retail market estimated to hit $2 trillion by 2032: Report
The retail market in India is expected to touch $2 trillion by 2032 from $690 billion in 2021, as per a joint report released by Anarock and the Retailers Association of India (RAI). According to the report, real estate developers are planning to add around 25 million square feet of new mall space across 7 major cities in the next 4 to 5 years.
In the year 2022, the top 7 cities added over 2.6 million square feet of mall space, 27% more than the previous year. A major contributor to the high volumes and sales was an unrestricted festive season with lessened fears of the pandemic.
The estimated sales value in the festive season of 2022 was Rs 2.5 lakh crore, which is 2.5 times higher than the previous year’s festive season. The revival of consumer demand and sentiments has aided retailers and brands to capitalize on this. This has in turn helped mall developers expand and add more mall space across major cities.
The report also stated that the retail market size and organized retail sector in India is on the track to grow at a CAGR of 25% and will reach a staggering size of $2 trillion by the year 2032. The Indian retail sector managed to pull in $1,473 million from 2019 to 2022.
The mall space across the 7 major cities in India is estimated to be at around 51 million square feet. From this amount, National Capital Region, Mumbai Metropolitan Region and Bengaluru make up 62% of the mall space. Hyderabad and Bengaluru were the only cities that saw new mall supply in 2022.
The average rentals in malls saw an appreciation of 15% in 2022 while Bengaluru saw the highest growth of 27%. Kolkata followed with an uptick of 20% in 2022 compared to the preceding year.
The report, citing industry estimates, said that the e-retail market is expected to grow to an amount of $120-140 billion by FY26. This will peg the growth rate at 25-30% annually over the next five years. Furthermore, the sales volume of the organised retail segment in FY22 was estimated to be $52 billion and is expected to grow to $136 billion by 2028 with a CAGR of 17%.
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