New Delhi: The organised retail sector in India will grow at a higher rate than GDP growth in the next five years driven by changing lifestyles, strong income growth and favourable demographic patterns, according to a KPMG report titled `Consumer Markets in India: the next big thing.'

According to the report, the annual growth of department stores has been estimated at 24 per cent, which is faster than overall retail; and supermarkets have taken an increased share of general food and grocery trade over the last two decades.

Though affluence remains concentrated in urban centers the report reveals that the sheer size and potential of the rural segment has been underestimated. The Indian market is evolving dynamically and there is hidden consumption power in the low-income rural areas that offers considerable opportunities for organised retailers in the kind of rural territories that many companies have failed to address.

The retail growth therein is expected to be double-digit if infrastructure allows the consumer companies to reach new markets at reasonable costs.

The KPMG report further reveals that the Indian consumer is emerging to be more trend-conscious with the development of modern urban lifestyles.

The reports adds that the food and beverages segment is an emerging growth area while the gems and jewellery market is a key emerging area with significant potential.