Redseer report highlights supply chain transformation and changing consumer trends
India’s retail sector is poised to reach a staggering USD 1.6 trillion by 2030, with organised retail surpassing $600 billion, according to a new report by Redseer Strategy Consultants. The sector’s rapid transformation is being driven by supply and distribution advancements, evolving consumer preferences, and increased adoption of technology-driven retail models.
While essential goods will continue to dominate spending, discretionary purchases are expected to drive the next wave of growth. However, despite this expansion, the retail landscape remains highly fragmented, with regional and unbranded brands projected to account for over 70 per cent of the market by 2030. The study highlights that only 350 brands in India have surpassed USD 100 million in revenue, in stark contrast to China’s 2,800 brands at the same scale.
India’s diverse regional preferences, price-sensitive consumers, and complex supply chains have created a retail sector with extensive SKU (Stock Keeping Unit) proliferation. This is particularly evident in sarees, home décor, toys, spices, and makeup, where consumer demand necessitates a vast range of product variations.
Despite its dominance, general trade (GT)—which thrives on accessibility and hyper-local reach—faces structural challenges. Pricing inconsistencies, lack of standardisation, and an inefficient value chain continue to impact the consumer experience. In contrast, organised retail—both online and offline—is expanding rapidly, addressing these inefficiencies through better sourcing, digital transformation, and infrastructure innovations. The segment is set to capture over 35 per cent of the total retail market by 2030, shifting power away from legacy pan-India brands towards organised distribution networks.
To capitalise on this shift, organised players are tapping into unbranded and regional markets while leveraging private labelling, backward integration, and supply aggregation. These strategies allow businesses to scale while catering to India’s diverse consumer base.
The report urges brands, policymakers, and retail ecosystem enablers to invest in supply chain efficiencies, digital transformation, and consumer-driven innovations. “Scaling ahead will require organised retail models to also address regional and unbranded consumption, alongside traditional branded offerings. Offline and online players are adopting a mix of strategies to tap into this vast opportunity,” said Kushal Bhatnagar, Associate Partner, Redseer Strategy Consultants.
With organised retail outpacing legacy brands, businesses must adapt to new-age distribution models, improve product accessibility, and embrace data-driven retail strategies to sustain long-term growth in India’s evolving market.
