Story Highlight
– Organised players projected to capture 45% market share by FY30.
– Indian jewellery market expected to reach $150 billion by FY33.
– Organised players grew 1.5x faster than overall industry.
– Weddings drive demand, with 25% in marriageable age group.
– High gold prices overcome by innovative offerings and e-commerce.
Full Story
According to a report by Nomura, organised players in India’s gold jewellery sector are forecasted to outpace the overall industry growth, potentially achieving a 45% market share by the fiscal year 2030. The Indian jewellery market has undergone considerable growth over recent years, expanding from $48 billion in FY2018 to an estimated $90 billion by FY2025, representing a compound annual growth rate (CAGR) of 9%. Further projections indicate a possible increase to $150 billion by FY2033.
The report highlights that from FY2018 to FY2025, organised jewellery players experienced growth at a rate 1.5 times that of the broader market, marked by a 14% CAGR. Their market share has increased significantly from 30% in FY2018 to 40% in FY2024, with expectations to reach 45% by FY2030.
The sustained expansion is attributed to India’s deep-rooted cultural ties to jewellery, particularly in the context of weddings, which account for 50-55% of the market. The demographic landscape supports this trend, with 25% of the population considered of marriageable age—a figure projected to rise from 365 million in 2023 to 390 million by 2030. Additionally, increased disposable incomes are driving demand in the daily wear and fashion jewellery segments.
Nomura’s analysis suggests that organised players are capitalising on a mix of stringent regulations, superior craftsmanship, and high standards of purity and transparency, which are critical in a sector that relies heavily on consumer trust. In response to the challenge posed by elevated gold prices, these entities are innovating with offerings such as instalment plans, old gold exchange initiatives, and lightweight jewellery options.
Moreover, the report noted that organised jewellery brands are strengthening their presence in the e-commerce space, which currently sits at a low penetration rate of just 6%. There are also efforts to expand into unexploited Tier 2, 3, and 4 markets, further enhancing their growth prospects.
Jewellery remains a fundamental component of discretionary spending across various income brackets. With an increasing number of affluent consumers emerging, strong demand is anticipated to persist, positioning organised players as primary beneficiaries in an evolving marketplace.