Bengaluru: India’s retail sector is set to become a $1.6 trillion market by 2030, with significant growth opportunities for organised retail, according to a new report from Redseer Strategy Consultants. While essential categories will continue to dominate spending, discretionary spending is expected to drive the next wave of expansion.

Offline and online organised retailers are addressing market inefficiencies through improved sourcing strategies, technology integration, and infrastructure innovations. The organised retail market is projected to become a $600 billion segment by 2030, capturing more than 35% of the total retail market share.

The report also highlights that 350 Indian brands have surpassed the $100 million revenue mark. However, the supply landscape remains fragmented, with regional and unbranded brands expected to account for over 70% of the market by 2030. “To scale, organised retail will need to cater to both branded and unbranded segments, alongside regional consumption patterns,” said Kushal Bhatnagar, Associate Partner at Redseer.

Consumer preferences in India are highly diverse, leading to a proliferation of stock-keeping units (SKUs) across categories like snacks, spices, food grains, apparel, jewellery, and home decor. A large share of consumers prefers small-ticket transactions, prioritising affordability over other factors.

The retail sector is also contending with multiple unorganised intermediaries, which complicate supply chain management. General trade (GT) continues to thrive due to its accessibility, small transaction model, and integration with local supply chains, effectively catering to hyper-local consumer needs.