Story Highlight
– Organised players in gold jewellery to reach 45% market share.
– Indian jewellery market projected to grow to $150 billion.
– Organised players grew 1.5x faster than overall industry.
– Weddings drive 50-55% of jewellery market demand.
– Innovative offerings and e-commerce enhance organised player growth.
Full Story
Major players in India’s gold jewellery sector are anticipated to significantly outpace the overall industry growth, potentially reaching a market share of 45% by the fiscal year 2030, as outlined in a report by Nomura. The Indian jewellery market has experienced notable expansion, climbing from $48 billion in FY18 to an estimated $90 billion by FY25, which corresponds to a compound annual growth rate (CAGR) of 9%. Projections suggest this growth trajectory will continue, with the market poised to reach approximately $150 billion by FY33.
The report indicates that organised jewellery businesses are growing at a rate 1.5 times faster than the sector as a whole, with a CAGR of 14% between FY18 and FY25. Their market share increased from 30% to 40% during this period, and they are expected to garner around 45% by FY30.
Nomura attributes this growth to the deep cultural significance of jewellery in India, particularly in relation to weddings, which account for between 50% and 55% of total jewellery sales. With nearly a quarter of India’s population falling into the marriageable age group—expected to rise from 365 million in 2023 to 390 million by 2030—demand in this segment remains robust. Simultaneously, an expanding income base is driving interest in daily wear and fashion jewellery.
Organised players have benefitted from regulatory developments, improved craftsmanship, and high standards of transparency and purity, which are critical in an industry reliant on consumer trust. In response to challenges such as elevated gold prices, these businesses have innovated by offering flexible payment plans, old gold exchange options, and lighter jewellery designs. They are also tapping into the e-commerce space, which still has significant room for growth, as penetration currently stands at just 6%. Additionally, efforts to enter Tier 2, Tier 3, and Tier 4 markets are part of strategies to sustain and accelerate their growth.
The report concludes that jewellery remains a fundamental purchase across various economic classes within the discretionary sector. With a continuous rise in affluent consumers, demand is likely to stay strong, positioning organised players as key beneficiaries amid ongoing changes in the industry.