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CMS Consumption Report 2024

Unfolding India’s Consumption Story

The CMS Consumption Report 2024 titled ‘Unfolding India’s Consumption Story’ spotlights the consumption trends & hotspots of India, driven by increased cash based spends.

A part of the 2nd edition of its annual trends compendium, the CMS Consumption Report is underpinned by the proprietary CMS Cash Index™ (CCI) data covering 1,37,000 business points, where every 2nd ATM and every 3rd organized retail outlet in India is serviced by CMS Cash Logistics. CCI was launched in 2016 to track the infusion of cash back into the economy across various commerce points.

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CMS Cash Index™ Vs. HSBC India Composite Purchasing Managers Index

The CMS Cash Index™ (CCI) is a weighted index consisting of two factors; the cash that goes into circulation via the ATM channels as replenishment and the cash collected from the organized retail channels post-consumer purchases. The HSBC India Composite PMI (HSBC ICPMI), erstwhile S&P Global India Composite PMI, gauges the vibrancy of the economy through the expansion and contraction in economic activity. The CCI™ and the HSBC ICPMI have been exhibiting a strong correlation since April 2016 while indicating how cash usage is closely linked to economic growth and consumption in a country.

In the last 8 years, the CMS Cash Index™ (CCI) has proven to be a very powerful indicator to track commerce transactions by consumers and has been referred to by various policymakers as well.

Source: CMS Info Systems & S&P Global

Note: The HSBC ICPMI readings are rebased to 100 in April 2016, when the CCI™ was launched, to derive the correlations between the two indices.

Top 5 Retail Sectors with High Growth in Consumption

Source: CMS Info Systems

Key Consumption Trends of FY24

FMCG

16.76%
Annual growth in average spending in FY24

Consumer Durables

3.74%
Annual growth in average spending in FY24

Indians moving beyond the ‘roti, kapda, makaan’ paradigm

Easing inflation and rising consumer demand coupled with a narrowing of the urban-rural divide is fuelling growth in FMCG and Consumer Durables.

Aviation

6.36%
Annual growth in average spending in FY24

Railways

8.16%
Annual growth in average spending in FY24

Rise of the travel economy

The proliferation of millennials and rising per capita incomes are engendering a travel economy in India with Indians eschewing the consumption of goods in favor of experiences that can range from travel and leisure to fine dining.

E-commerce

Strong recovery in average spending in FY24

Education

Average spending is muted in FY24

Winds of change

In FY24 average spending in e-commerce declined by 14.61%, compared to 25.44% decline in FY23 indicating a strong recovery. In education average spending remained positively muted in FY24, compared to 1.61% decline in FY23, indicating a slight recovery in expenditure.

Media & Entertainment

29.30%
Annual growth in average spending in FY24

Entertainment is no longer a ‘luxury’

The growth in this sector is being fuelled by increasing spends as Indians allocate a higher portion of their household budgets to M&E, especially post the COVID-19 pandemic.

Where are the High Consumption Hotspots of India?

In FY24, 14 out of 23 States & Union Territories witnessed an annual average ATM withdrawal YoY growth of 6.45%, and 9 States & Union Territories saw an average 4.14% YoY decline.

Disclaimer: The map is only for representative purpose and not to scale.

Note: Hover on map for YoY changes in Annual average ATM withdrawals and withdrawals for spends across states.

Source: CMS Info Systems

Annual average ATM withdrawals for spends (₹ Cr)

FY23

FY24

Source: CMS Info Systems

Note: Hover on map for YoY changes in Annual average ATM withdrawals and withdrawals for spends across states.

Disclaimer: The map is only for representative purpose and not to scale.

Annual average ATM withdrawals for spends (₹ Cr)

FY23

FY24

YoY change in the annual average ATM withdrawals

-5% to -10%

0% to -5%

0% to 5%

5% to 10%

10% to 15%

15% to 20%

>20%

The Consumption Spillover

India is a vast country with a diverse population that is split across income, employability, education, and cultural choices. India is also a nation that is currently on the move - per capita incomes are rising, urban, semi-rural, and rural centres are thriving, and consumption is increasing across the country.

This is evidenced by the 5.51% growth in the monthly average ATM cash withdrawals (used as a proxy for consumption spends) which increased to ₹1.43 crore in FY24 from ₹1.35 crore in FY23.

On a monthly basis, the average ATM cash withdrawals in FY24 were higher compared to FY23 with withdrawals in 10 out of 12 months exceeding the FY23 monthly average of 7.23%.

Consumption is Reaching the Grassroots
Even as Metros Continue to Hold Sway

Growth in average cash withdrawn in FY24

Metros
10.37%

SURU
3.94%

Semi-metros
3.73%

Commensurate with FY24 average ATM cash replenishment trend compared to FY22, ATM cash withdrawals in metro locations have grown at 37.49%, whereas SURU witnessed 12.50% growth in ATM cash withdrawals.