Will Merchandising save Sinking Esports Economy in India?

Exploring the untapped potential and resilience of Indian esports, where merchandising emerges as a consistent lifeline amid a rapidly evolving ecosystem.

- IMRAN FAZAL

During and after the COVID era, it was considered a golden period for the Indian gaming industry. However, one must not overlook how the growth of the Indian esports industry struggled to grow, causing financial challenges for esports team owners in the country. The reason behind this slow growth was due to the limited options available for expanding revenue streams. Nevertheless, merchandising consistently remained a viable option for these esports teams, serving as a tool to periodically boost their income.

It should be noted that the Indian esports industry is expected to grow from $40 million in 2022 to $140 million by 2027, according to the State of India Gaming Report 2022 from AWS and Lumikai. The report found the number of esports players in India grew four-fold - from 150,000 in 2021 to 600,000 in 2022 - and is expected to grow 2.5 times over the next five years, reaching 1.5 million by 2027. Furthermore, esports revenue, currently at $0.04 billion, is a small segment but is likely to grow rapidly at a 32 percent CAGR through 2027.

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