Story Highlight
– Organised players projected to capture 45% market share by FY30.
– Indian jewellery market grew from $48 billion to $90 billion.
– Weddings drive 50-55% of jewellery market demand.
– Organised players benefit from regulations and high standards.
– E-commerce growth and innovative offerings fuel competitive advantage.
Full Story
The organised segment of India’s gold jewellery sector is anticipated to outpace the overall industry growth, aiming for a 45% market share by the fiscal year 2030, as outlined in a recent report by Nomura. This analysis indicates significant growth in the Indian jewellery market, which expanded from $48 billion in FY18 to an expected $90 billion by FY25, representing a compound annual growth rate (CAGR) of 9%. Projections suggest further growth to reach approximately $150 billion by FY33.
According to the report, the organised sector has been growing at a remarkable pace—1.5 times faster than the market overall—boasting a CAGR of 14% from FY18 to FY25. Their market share has increased from 30% in FY18 to 40% in FY24. This trend is expected to continue, pushing their share to an estimated 45% by FY30.
The sustained growth is largely attributed to India’s deep-rooted cultural ties to jewellery, with weddings making up 50-55% of the jewellery market. The demographic advantage is significant, as roughly 25% of the population is in the marriageable age bracket—a figure projected to increase from 365 million in 2023 to 390 million by 2030. Furthermore, the growing middle class is enhancing demand for both daily wear and fashion jewellery.
Nomura’s findings indicate that organised retailers are benefitting from regulatory support, higher craftsmanship standards, and stringent purity and transparency norms, which are crucial in a field where consumer trust is paramount.
In response to rising gold prices, these players have been innovative, launching offerings such as instalment payment plans, old gold exchange initiatives, and developing lighter jewellery options. They are also capitalising on the e-commerce potential, which, despite being currently at a modest 6% penetration, presents considerable growth opportunities. Additionally, there is a concerted effort to establish a presence in underserved Tier 2, Tier 3, and Tier 4 cities.
The report concludes that jewellery remains a consistent choice among discretionary expenditures across different income groups. With the affluent population steadily increasing, demand is likely to persist, positioning organised players as the primary beneficiaries of the evolving landscape in the jewellery sector.