The short-form video apps (SFV) market in India could potentially become an opportunity of $8-12 billion by 2030, courtesy of the increase in adoption and usage of smartphones, says a new report by Redseer Strategy Consultants. Homegrown short-form video companies such as Moj, Josh and Chingari gained popularity in India after the government banned TikTok and other Chinese apps. They were joined by global players such as Meta-owned Instagram Reels and YouTube Shorts too.
The new report added that fashion and beauty (53 per cent), personal care (45 per cent) and packaged food and beverages (35 per cent) are the three categories that will see exponential growth in short video platforms.
According to last year’s report by Oxford Economics, YouTube, the world’s largest video platform’s ecosystem of creators generated considerable economic value, thus, contributing Rs 6,800 crore to the Indian GDP.
“Currently, brands and influencers mostly engage via intermediary agencies – a model that is broken and lacks efficiency,” Mohit Rana, Partner, Redseer Strategy Consultants, said in a statement.
“There is a need for a tech-enabled, transparent and scalable solution. Creator marketplaces can bridge this gap”, Rana added.
In India, video commerce has just started, with short-form video platforms expected to capture 40 per cent of the $8-11 billion video commerce market in 2030. Globally, short-form video platforms and e-commerce platforms are increasingly focusing on video commerce to enhance customer engagement and boost sales.
Furthermore, the report mentioned that the preferred language for content consumption in metro and tier 1 cities is Hindi, followed by English and other regional languages. The report also noted that user-generated content (UGC) platforms are developing creator marketplaces that can become a centralised network for creators to connect with brands. This can benefit both creators and brands, as it provides a platform for creators to showcase their work and for brands to find suitable creators to work with.
The report also highlighted that virtual gifting on short-form video platforms in India is expected to hit $1.7 billion by 2030.