CMS Info Systems (CMS), India's leading business services company has today released CMS Consumption Report 2024 titled 'Unfolding India's Consumption Story'. In the 2nd edition of its annual trends' compendium, CMS spotlights the consumption trends and hotspots of India, driven by increased cash-based spends. It is underpinned by the proprietary CMS Cash Index™ (CCI) covering 1,50,000 business points, where every second ATM and every third organized retail outlet in India is serviced by CMS Cash Logistics.
The report highlights compelling trends supporting the consumption boom in India and provides a sector-and state-level analysis of growth in domestic consumption. Key takeaways from the CMS Consumption Report 2024 are:
- Entertainment in India is no longer a luxury, during FY24, the average spending in the Media & Entertainment sector increased by 29.30%. Over a two-year period, from FY22 to FY24, the average spending in the sector increased by nearly 100%.
- Indians are moving beyond the 'roti, kapda, makaan' paradigm and increasingly spending on both discretionary as well as non-discretionary goods. The latter is endorsed by a robust 16.76% annual growth in the average spending in the FMCG sector in FY24, which is a remarkable recovery compared to the 21.94% decline observed in FY23.
- The travel economy is on the rise in India, which is validated by an annual growth of 6.36% in the average spending in the Aviation sector and 8.16% annual growth in Railway sector spending during FY24. Over a two-year period, from FY22 to FY24, the Aviation and Railway sectors have witnessed 27.42% and 56.35% growth respectively in the average spending.
- The Indian consumption story is undergoing a transformation as evident by the slowing pace of decline in the E-commerce and Education sectors' spending in FY24. In FY24, average spending in E-commerce was at -14.61% vs -25.44% in FY23 and average spending in Education remained positively muted vs -1.61% in FY23.
- Metros continue to dominate India's consumption spends in FY24 with 10.37% increase in average ATM withdrawals for spends. This is complemented by a 3.94% increase in SURU locations, closely followed by a 3.73% increase in Semi-metro locations.
- During FY24, consumption hotspots in ATM withdrawal in India was led by 2 Northern states - Delhi and Uttar Pradesh; 2 Southern states - Tamil Nadu and Karnataka, and 1 Eastern state - West Bengal.
Anush Raghavan, President, Cash Management Solutions, CMS Info Systems said, The Indian economy continues to be driven by consumption and we are observing a robust growth with evolution in spending patterns. The Indian consumption story is expected to play out robustly in the FY25, where sectors like FMCG, Aviation, and E-commerce would drive stronger consumption growth. The confluence of varied factors including increasing digitization, rising incomes, and demand for customization would boost consumption in these sectors".
These consumption trends shed light on Indian consumer behavior and evolving preferences, while uncovering compelling patterns and trends that support India's consumption story.
CMS Consumption Report 2024 can be accessed here.
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