Story Highlight
– Organised players to capture 45% market share by FY30.
– Indian jewellery market grew from $48B to $90B.
– Weddings drive 50%-55% of jewellery market demand.
– Organised players benefitting from regulations and transparency.
– E-commerce and new strategies fuel organised growth.
Full Story
Organised players within India’s gold jewellery sector are anticipated to outpace the broader industry, potentially achieving a 45 per cent market share by the fiscal year 2030, according to a recent analysis by Nomura. The study outlined notable growth in the Indian jewellery market, which escalated from $48 billion in fiscal year 2018 to an estimated $90 billion by fiscal year 2025, representing a compound annual growth rate (CAGR) of 9 per cent. Future projections suggest the market could reach $150 billion by fiscal year 2033.
The report indicates that organised players are expanding at a rate 1.5 times that of the overall industry, with an impressive 14 per cent CAGR from FY18 to FY25. Their market share has risen significantly, from 30 per cent in FY18 to 40 per cent forecasted for FY24, and is expected to climb to 45 per cent by FY30.
Nomura attributes this growth to India’s deep-rooted cultural connection to jewellery, particularly in the context of weddings, which constitute approximately 50-55 per cent of the jewellery market. The demographic landscape is shifting, with the eligible marrying population projected to increase from 365 million in 2023 to 390 million by 2030, further boosting demand. Additionally, an emerging middle class is driving interest in daily wear and fashion jewellery.
The report emphasises that organised jewellers are capitalising on regulatory frameworks, superior craftsmanship, and a commitment to purity and transparency—factors critically important in a market where consumer trust is paramount. Despite facing challenges from elevated gold prices, these businesses are finding ways to adapt, introducing innovative solutions like installment plans, old gold exchange options, and lightweight jewellery designs.
Moreover, organised players are tapping into the growing e-commerce space, which currently has a penetration rate of only 6 per cent, while also extending their reach into underserved Tier 2, Tier 3, and Tier 4 markets. These approaches are set to sustain their accelerated growth trajectory beyond that of the overall sector.
Furthermore, jewellery remains a fundamental aspect of discretionary spending across diverse income levels. As the affluent segment of the population continues to expand, the demand for jewellery is expected to stay robust, positioning organised players as significant beneficiaries in the evolving landscape of the jewellery market.