The home and kitchen goods industry is experiencing a fundamental shift toward premiumization, with consumers demonstrating stronger appreciation for quality, craftsmanship, and longevity. According to Dr. B.K. Modi, this premiumization trend is being driven by a stronger appreciation for quality, craftsmanship and longevity, with buyers increasingly willing to invest in products that are thoughtfully made. As reported by Dr. B.K. Modi, brass, crystal and marble are materials attracting stronger interest, with consumers far more willing to invest in products that offer superior aesthetics, premium materials, and enhanced functionality. Vikram Singh Dhingra, Senior Vice President at TISVA, emphasizes that premiumization is being fueled by rising disposable incomes, evolving lifestyles and greater exposure to global design trends. The industry is moving toward bespoke products where premium lives, with designers arriving with specific space requirements, moods, and exact dimensions, enabling manufacturers to deliver customized solutions.
According to a Deloitte report from September 29, the home and kitchen goods industry is positioned for significant expansion over the next five years. The overall market, valued at ₹166 billion as of 2025, is expected to reach ₹260 billion by 2030. Durables and appliances, representing the largest segment, are projected to grow from ₹66 billion to ₹95 billion during this period. As reported by Mint, this growth is primarily driven by premiumization trends, with customers prioritizing lifestyle aspirations over immediate repair needs when planning home improvements.
E-commerce platforms are implementing comprehensive strategies to capitalize on festive demand. According to Mint reports, Amazon India has expanded its Great Indian Festival to include kitchen and home goods through its quick-commerce service, Amazon Now, for the first time. The company is experiencing 30-40% growth in gross sales during pre-sale offers, with Aman Deep Lohan, director of home, kitchen, and outdoors at Amazon India, noting solid growth from Independence Day and Prime Day sales. Customer engagement with financial offers is particularly strong, with 70-75% of sales transactions in home and kitchen categories using bank offers, expected to increase to 80% this year.
The industry faces significant pressure from rising input costs, particularly affecting small and large appliances. As reported by Mint, companies are implementing price increases across product portfolios to offset these rising costs, driven by the West Asia war impact on materials like plastic, copper, and electronic components. LG Electronics exemplifies this trend by hiking air conditioner prices by 5-6% starting October 1, while maintaining prices for other categories including washing machines and TVs. Brand manufacturers are also focusing on localizing manufacturing to reduce import cost pressures. The sector is facing renewed cost pressures, with sugar prices touching a new high, along with sharp increases in edible oils, coffee, cocoa and crude oil derivatives used in packaging. Geopolitical disruptions and supply concerns in global markets have further added to the pressure.
