White Goods

The white goods industry consists of air conditioners, refrigerators, washing machines and dryers, dishwashers, and LED Lights.

The White Goods industry in India reached $ 13.66 Bn in FY21. Out of this, the largest market share comprised of Air Conditioners, Refrigerators and LED products.

The White Goods market is estimated to cross $ 21 Bn by 2025 expanding at a CAGR of 11%. Domestic manufacturing contributes nearly $ 4.6 Bn on an average to this industry.

• Air Conditioner Market in India to increase to $9.88 Bn by FY26 from $3.84 Bn in FY21 at a CAGR of 20.8%
• Refrigerator Market in India to increase to $6.72 Bn by FY26 from $3.88 Bn in FY21 at a CAGR of 9.5%
• LED Lights Market in India to increase to $8.12 Bn by FY26 from $3.56 Bn in FY21 at a CAGR of 18.64%
• Personal Care Appliances (Dryers, Trimmers and Straighteners) Market in India to increase to $ 1.36 Bn by FY26 from $435 Mn in FY21 at a CAGR of 21% ·
• Dishwasher Market in India to increase to $93.5 Mn by FY26 from $45.6 Mn in FY21 at a CAGR of 10.8%

There is immense potential for growth in the rural market and tier – 2,3 cities with consumption expected to rise in these areas as penetration of brands increases. Demand for consumer durables is also expected to grow as investment in rural electrification and infrastructure increases.

The Government of India's policies and regulatory frameworks, such as relaxation of license rules and approval of 51% Foreign Direct Investment (FDI) in multi-brand and 100% in single-brand retail, have been some of the major growth drivers for the white goods sector. According to the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000 and June 2021, electronic goods attracted FDI inflows of $ 3.2 Bn.

The white goods market in India is largely untapped for heavy duty appliances like air conditioners, washing machines and fridges. ACs have a penetration of 4% in India as compared to the global average of 30%

Rise in disposable incomes coupled with easier access to credit has been consistently increasing the purchasing power of consumers. These factors supported by digitalization and a burgeoning e-commerce ecosystem have been improving affordability for the white goods segment.