India’s audio market sees remarkable growth, with offline sales approaching Rs 5,000 crore: GFK, ET BrandEquity

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The Indian audio market is witnessing a “remarkable growth” as offline retail sales reached Rs 5,000 crore in annual turnover (MAT) in June 2024, driven by a 61 per cent year-on-year volume growth in the Personal Audio segment, as per a GfK report. The growth is being driven by the rise in immersive audio technologies, improved consumer experiences and rising demand for premium audio products across both home and personal categories, it said.

Moreover, the shift towards premiumisation of the category as consumers seek higher quality and immersive audio experiences is also helping the Indian audio device market.

Indian consumers have a “huge appetite” for audio devices and are looking for a cinematic experience and listening convenience.

“As the entertainment market continues to evolve, consumers are increasingly seeking high-quality, cinematic audio experiences, making this sector ripe for growth and revenue-generating opportunities,” said GFK, which is now part of NIQ Company, a leading global market and consumer intelligence firm.

While compact stereo systems still dominate the market, home theater and smart audio systems have seen rapid growth.

“The personal audio market in India, valued at Rs 3,400 crore, witnessed a 32 per cent YoY growth in value in MAT June 2024,” the company said, adding, “Headphones, headsets and mini/Bluetooth speakers have become essential for Gen Z consumers who increasingly expect flexibility, affordability, style and quality in their audio experience.”

In addition, this demand is being driven by the growth of new content formats such as podcasts and audio series, it added.

Moving Annual Turnover (MAT) is a calculation that measures the average sales or turnover over a 12-month period, with data being calculated monthly.

In the personal audio segment, True Wireless Headsets enjoyed “significant demand, with market share increasing by 38 percent” in the headset category.

“The True Wireless segment is the leader in the audio market by value, with a 50 percent share. Neckbands continue to dominate the personal audio market by volume, accounting for 55 percent of sales,” the release said.

Sales of mini/Bluetooth speakers also grew by 15% year-on-year, with entry-level products priced under Rs 2,000 accounting for 3% of sales in terms of volume.

“Consumer demand for wireless and true wireless models, as well as advanced features such as noise cancellation and voice assistant integration, continue to drive market growth,” the release reads.

Moreover, with the average selling price in the category coming down by 18 per cent, the availability of high-quality audio devices under the Rs 1,400 mark has become increasingly common.

While the speaker segment, dominated by soundbars, recorded a 24 per cent year-on-year volume growth in MAT in June 2024, reaching Rs 11 billion.

“70 percent of speaker sales come from large retail chains. The South Zone, especially cities like Bangalore, Chennai and Hyderabad, have emerged as the place where demand for speakers is the highest,” the release reads.

In addition, the growth in loudspeaker sales in smaller towns and cities, which account for almost 30 percent of sales in this category, also reflects the trend of growing demand in non-metropolitan areas.

Now, Home Audio, valued at Rs 16 billion, is becoming a premium brand, with 5.1-channel systems gaining popularity. High-end segments account for 23 percent of sales, it added.