Administrator
25 September 2026
Representational Pic
India’s consumption story is increasingly being shaped by consumers moving up the value ladder. From ₹1 crore-plus homes and utility vehicles to Swiss watches, smartphones, and appliances, premiumisation is reaching smaller towns and rural markets as incomes and aspirations reshape buying patterns.
Jharkhand figures in the list of consumers moving up the value ladder (Read the whole story).
Homes, Cars and Travel Lead
In H1 2026, 54% of residential sales across eight cities were homes priced above ₹1 crore, up from 49% a year earlier, according to Worldpanel by Numerator. Utility vehicles accounted for 68% of vehicle sales, while imports of Swiss watches rose 37%. International air travel grew 3.9% in FY26, nearly three times domestic growth.
Everyday Consumption Moves Up
Premiumisation is also visible in FMCG, where premium-oriented households spent as much as 2.3 times more per shopping trip in some categories. L’Oréal India said 40% of its beauty sales come from products below ₹100, showing the breadth of India’s market.
Electronics Reflect the Shift
Entry-level electronics are losing share as consumers opt for larger capacities and higher-priced models. Refrigerators in the 180–190-litre range account for about 60% of single-door sales, while smaller segments have contracted. In semi-automatic washing machines, 8–9 kg models now lead. Smartphones below ₹15,000 fell from 45% of sales in 2024 to 24% in 2026. Tier-II and beyond markets recorded 8% year-on-year growth in premium smartphone purchases in 2025.
The Next Consumption Frontier
Companies are increasingly finding premium demand outside traditional urban markets. AB InBev India reported a sharp rise in premium beer sales in Jharkhand, reaching six lakh cases from no earlier presence.
Beyond the Metros
India’s premium market is no longer confined to metros. Its durability will depend on whether rising incomes, aspirations, financing and access can broaden this upgrade cycle across the country.
If you value our journalism, consider making a voluntary contribution to help us continue bringing news, stories and information to our readers.
Scan the QR code to contribute
Every contribution, big or small, is appreciated.
