India’s
E-Commerce to Hit USD 550 Bn by 2035; Mall Vacancy Down to 8.1% in 2024 -
ANAROCK-ETRetail Report
- In 2024, the e-commerce
retail segment was pegged at USD 125 Bn - may touch USD 345 Bn by 2030
- Besides metros, e-commerce
companies tapping into smaller towns - online shoppers' share in Tier 2
& 3 cities rose to 56% in FY2024 from 46% in FY2020
- New mall supply across top 7
cities was just 1 Mn sq. ft. in 2024, with absorption at 6 Mn sq. ft.;
mall vacancy down to 8.1% in 2024 from 15.4% in 2019
- Indian retail industry to
reach USD 2,500 Bn value by 2035 at 6% CAGR; organised retail share to
touch 17% by 2035 from current 12%
Mumbai,
20 February 2025: E-commerce
has become a fulcrum of change for the Indian retail industry, finds a joint report by ANAROCK and ETRetail
released today at The Economic Times Great India Retail Summit 2025 in
Mumbai at the Jio Convention Centre.
The
report finds that Indian e-commerce is expected to touch USD 550 Bn by 2035,
growing at a CAGR of 15%. In 2024, the value of this vibrant and disruptive
retail segment was estimated at USD 125 Bn. It is likely to touch USD 345 Bn by
2030-end.
Increasing
Internet penetration, smartphone adoption, digital payment infrastructure, and
a young, tech-savvy population are driving this growth. Government initiatives
like 'Digital India' and rapid improvements in the country's logistics and
supply chain networks have further boosted its growth prospects.
“Besides
the metros, e-commerce players are also tapping the growing demand from smaller
towns and cities. Resultantly, the share of online shoppers from Tier 2 and 3
cities has increased to 56% in FY2024 from 46% in FY2020, and is expected to
reach 64% by FY2030," says Anuj Kejriwal, CEO & MD – ANAROCK Retail.
“Meanwhile, the overall Indian retail industry's market size is expected to
touch USD 2,500 Bn by 2035, witnessing a three-fold increase compared to 2019.
The report states that this growth is powered by rising disposable incomes,
increasing urbanization, a young and tech-savvy population, and an
ever-expanding middle class. Today, the industry is defined by sprawling malls
and thriving e-commerce alongside traditional bazaars.”
Source: Compiled by ANAROCK Research
"
New mall supply across the top 7 cities was a mere 1 Mn sq. ft. in 2024, while
absorption stood at 6 Mn sq. ft.,” says Anuj Kejriwal. “New supply is lagging
far behind demand. Current supply and demand trends for mall spaces indicate a
post-pandemic rebound in leasing, now largely driven by experiential retail.
Apparel and the F&B sectors consistently contribute nearly 45% of demand,
remaining the top footfall drivers. Also, post-COVID, the mall vacancy rate has
declined from 15.4% in 2019 to 8.1% in 2024."
The
report highlights that major domestic and international retailers have
ambitious plans to increase their footprint in India's smaller towns and
cities, resulting in a surging supply of malls in tier 2 and 3 markets which
will, potentially, account for over 26 million sq. ft. of mall spaces by 2030.
Click to download the report Indian Retail - Changing Orbits for a
New Trajectory
