Retail Market Projected To Touch $2 Trillion By 2032: Report
Sales value estimated during the festive season in late 2022 was Rs 2.5 lakh crore, nearly 2.5 times compared to the previous year.
The size of the country's retail market is expected to touch $2 trillion by 2032, growing from $690 billion in 2021, according to a joint report by Anarock and Retailers Association of India.
The report by property consultant Anarock and Retailers Association of India said that real estate developers plan to add nearly 25 million square feet of new mall space across seven major cities over the next 4-5 years.
In 2022, these seven cities added over 2.6 million sq ft of mall space, up 27 per cent from the preceding year.
"The festive season, devoid of restrictions and any fear of the contagion, was exemplary with record high volumes and sales value", Anuj Kejriwal, CEO and managing director of ANAROCK Retail, said.
Sales value estimated during the festive season in late 2022 was Rs 2.5 lakh crore, nearly 2.5 times compared to the previous year, he said.
"Further, the retail market size is expected to touch $2 trillion by 2032, growing from $690 billion in 2021, facilitating the organised retail sector to grow at 25% CAGR," Kejriwal said.
Kumar Rajagopalan, CEO of Retailers Association of India, said the Indian retail sector attracted around $1,473 million between 2019 and 2022.
Presently, the top cities have over 51 million sq ft of mall stock across the country with NCR (National Capital Region), MMR (Mumbai Metropolitan Region) and Bengaluru accounting for 62% of the total stock.
The average rentals in malls appreciated by nearly 15% in 2022 over the previous year. Bengaluru registered the highest uptick in rentals of around 27%, followed by Kolkata at 20% in 2022 over the previous year.
Citing industry estimates, the report said that e-retail market is anticipated to reach $120-140 billion by FY26, increasing at 25-30% annually over the next five years.
The sales volume of the organised retail segment in FY22 was estimated at $52 billion and is projected to grow to $136 billion by 2028 with a CAGR of 17%, it added.
