New-Age Brands in India Poised for $50 Billion Market Capitalization by 2030
According to a report by venture capital firm Elevation Capital, new-age brands in India are poised for significant growth, potentially unlocking a $50 billion market capitalization by 2030. This expansion is driven by the increasing discretionary spending power of Indian households, coupled with the rapid growth of online commerce. The report estimates that India’s online market is projected to more than double, reaching $300 billion by 2030, providing a fertile ground for the growth of new-age brands.
Factors such as deepening e-commerce penetration, lowered cost barriers, and improved internet access are converging to make brand-building an attractive proposition for entrepreneurs. As a result, Elevation projects that new-age brands in discretionary categories will contribute $50 billion to the public market cap by 2030.
Historically, India’s consumer goods market has been dominated by large multinationals and homegrown players. However, the market dynamics have shifted in recent years, with new-age consumer brands gaining traction among shoppers. The report identifies several industries with significant growth potential, including pet care ($7 billion opportunity), premium leisure travel ($20 billion opportunity), and premium healthcare ($10 billion opportunity).
The report highlights the top five million households, constituting approximately 2% of India’s population, as a key growth driver for discretionary spending. Their spending pool is expected to expand to $100 billion annually over the next decade, up from $40 billion currently. Founders building in this space are advised to focus on consumers’ unique needs, premium quality, and trust to succeed.
Despite the perception that consumer marketplaces have saturated, the report emphasizes the potential for disruption in complex categories that conventional online marketplaces have not adequately served. Elevation’s co-managing partner and partner, who leads the firm’s consumer tech investments, expressed confidence in the viability of building high-quality businesses in the consumer tech space in India.
