Where money flows: 54% of India's retail space goes to apparel, F&B in 2025

India’s retail landscape is undergoing a transformation, as consumer preferences evolve in real time—and so are retail brands’ expansion strategies. According to fresh research by ANAROCK, apparel and food & beverage (F&B) brands together accounted for 54% of the total 2 million sq. ft. retail space leased in the first half of 2025 across India’s top seven cities. This marks a significant jump from their combined 37% share in 2023.

 

However, the deeper story lies in the shifting weight within these categories.

 

“Apparel, though still the top leasing category, has seen a consistent dip in its share—from 42% in FY19 to 37% in FY25. We expect this to decline further to 32% by FY30,” said Anuj Kejriwal, CEO & MD, ANAROCK Retail.

 

 

In contrast, F&B continues its steady upward march, growing from 8% in FY19 to 12% in FY25, with a projected share of 16% by FY30.

 

The dip in apparel leasing mirrors a broader trend affecting other value-driven retail categories such as hypermarkets. These segments are increasingly being squeezed by the twin forces of traditional e-commerce and fast-growing quick commerce platforms.

 

Retailers, especially in fashion and grocery, now face the challenge of competing with doorstep delivery, broader choices, and dynamic pricing. As a result, the focus is shifting towards experience-oriented, high-engagement categories.

 

Categories offering more than just products—such as F&B, beauty and wellness, jewellery, and sports—are seeing significant traction. Jewellery leasing, for instance, rose from a mere 2% in FY19 to 5% in FY25, and is projected to rise further to 13% by FY30.

 

Kejriwal notes, “From an asset-use perspective, these brands bring in aspirational value and repeat footfalls. They help malls transform into experience-led destinations.”

 

Break-up of Retail Leasing in H1 2025

Of the total net absorption of 2 million sq. ft. across top seven cities in H1 2025:

 

Apparel brands leased 33%

 

F&B brands took up 21%

 

Entertainment zones accounted for 16%

 

Home & lifestyle brands made up 11% 

Of net retail absorption of over 2 Mn sq. ft. across the top 7 cities in H1 2025, nearly 33% was leased by apparel brands, 21% by F&B brands, 16% by entertainment zones, and 11% by home & lifestyle brands.

 

Unlike previous generations who swore by brand loyalty and peer recommendation, today’s consumers value convenience, emotional resonance, and personalization. They’re more likely to engage with brands that offer a digital-first experience and align with their beliefs around sustainability, innovation, and individuality.

 

“We’re seeing a clear shift towards quick, customized, value-rich experiences that are increasingly influenced by digital platforms and social media,” Kejriwal explained. “Retail success now lies in tapping into the aspirations of India’s tech-savvy, fast-paced consumers.”

 

“Retailers must rethink how their spaces serve the customer. It’s not about square footage anymore, but about strategic engagement,” added Kejriwal.

 

Key points to know:  

• Of net retail absorption of over 2 Mn sq. ft. across top 7 cities in H1 2025, apparel brands leased nearly 33% and F&B leased 21%; entertainment zones leased 16%, home & lifestyle brands 11%
• Beauty & wellness, F&B, sports, and jewellery gaining major traction in malls on the back of high-value consumption trend
• Jewellery held a 2% leasing share in FY19 which rose to 5% in FY25, projected to reach 13% in FY30
• E-commerce impact - despite currently having maximum share, apparel leasing declining - from 42% in FY19 to 37% in FY25, projected to reach 32% by FY30
• Conversely, F&B leasing share increased from 8% in FY19 to 12% in FY25, to touch 16% in FY30