Taxable Retail Market Size and Trends

The taxable retail market size is expected to reach US$ 22.97 billion by 2030, from US$ 13.49 billion in 2023, growing at a CAGR of 7.9% during the forecast period.

The taxable retail market refers to the portion of overall retail sales that is subject to sales tax. This includes most tangible goods sold through retail channels like grocery stores, department stores, drug stores, convenience stores, online retailers, and more. Key offerings in this market include food and beverages, apparel, consumer electronics, home furnishings and improvement goods, personal care items, toys and games, and other miscellaneous retail merchandise. Growth in the taxable retail market is driven by factors like rising disposable incomes, population growth, urbanization, and evolving consumer preferences.

The taxable retail market is segmented by product type, distribution channel, and Region By product type, the largest segment is food and beverage, accounting for 2022 over 25% of the market. The food and beverage segment is growing due to increasing demand for fresh, healthy, and convenient food options.

Taxable Retail Market Trends:

Experiential Retail Gaining Traction: Experiential retail that immerses customers in unique in-store adventures rather than merely product shopping is a growing trend. Retailers are incorporating food & beverage, entertainment, technology, community events, and more to make physical stores engaging destinations. For example, the NBA Experience store in New York lets customers shoot hoops and feel like star players. Brands aim to embed within cultural zeitgeists. Pop-up shops that attract social media photo shares are another example of this trend in action. According to India Retail, in 2022, the retail sector in India boasted a total value of US$ 836 billion. Traditional retail plays a dominant role, contributing 81.5% to the overall market, in 2021, followed by organized brick-and-mortar retail at 12%, with online sales channels making up 6.5%. in 2022.

Sustainability and Ethical Sourcing: Sustainable retail practices such as renewable energy in stores, reduced packaging waste, LEED-certified buildings, recycling programs, responsibly sourced materials, and transparency around supply chains cater to eco-conscious consumers. More shoppers, especially younger demographics, align their values with brands that are ethical, inclusive, and environmental stewards. Retailers pursuing sustainability, fair trade, and local sourcing tend to foster consumer trust and loyalty. This trend drives growth for eco-friendly brands. According to Invest India, 2015 to 2021 over the past 8.5 years, India has witnessed an impressive 396% surge in its installed non-fossil fuel capacity, which nowxceeds 179.322 gigawatts, encompassing large hydro and nuclear sources. This accounts for approximately 43% of the nation's total capacity as of July 2023. Notably, India achieved the highest year-on-year growth in renewable energy additions, reaching 9.83% in 2022.

Sustainability and Ethical Sourcing: Sustainable retail practices such as renewable energy in stores, reduced packaging waste, LEED-certified buildings, recycling programs, responsibly sourced materials, and transparency around supply chains cater to eco-conscious consumers. More shoppers, especially younger demographics, align their values with brands that are ethical, inclusive, and environmental stewards. Retailers pursuing sustainability, fair trade, and local sourcing tend to foster consumer trust and loyalty. This trend drives growth for eco-friendly brands. According to Invest India, 2015 to 2021 over the past 8.5 years, India has witnessed an impressive 396% surge in its installed non-fossil fuel capacity, which now exceeds 179.322 gigawatts, encompassing large hydro and nuclear sources. This accounts for approximately 43% of the nation's total capacity as of July 2023. Notably, India achieved the highest year-on-year growth in renewable energy additions, reaching 9.83% in 2022.