Story Highlight
– Organised players to capture 45% market share by FY30.
– 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.
– High gold prices spurred innovative offerings and e-commerce growth.
Full Story
According to a recent report from Nomura, organised segments of India’s gold jewellery market are forecast to expand more rapidly than the overall industry, potentially reaching a 45% market share by the fiscal year 2030. The Indian jewellery market has experienced notable growth, rising from $48 billion in FY18 to an anticipated $90 billion by FY25, representing a compound annual growth rate (CAGR) of 9%. Projections suggest that this market could further increase to $150 billion by FY33.
The report indicates that between FY18 and FY25, organised players within the industry reported growth at a rate 1.5 times that of the overall market, achieving a CAGR of 14%. Their market share has risen from 30% in FY18 to a forecasted 40% by FY24, with expectations that it will climb to 45% by 2030.
Nomura emphasizes that this growth is significantly supported by India’s cultural connection to jewellery, which is especially pronounced in the wedding sector, accounting for 50 to 55% of jewellery demand. The demographic trends are promising, with nearly 25% of the population in the marriageable age group, projected to increase from 365 million in 2023 to 390 million by 2030. Moreover, an expanding middle class is driving further demand for daily wear and fashion jewellery.
Organised firms are capitalising on favourable regulations and are enhancing their appeal through improved craftsmanship and stringent purity standards, critical in an industry where consumer trust is paramount. Despite facing challenges such as elevated gold prices, these players have adapted their offerings, introducing initiatives like instalment plans, old gold exchange programs, and lightweight jewellery options.
Additionally, they are tapping into the e-commerce sector, where online penetration remains relatively low at just 6%, while also aiming to strengthen their physical presence in Tier 2, Tier 3, and Tier 4 cities. These strategies position organised players to continue their growth trajectory, outpacing the broader industry.
Jewellery remains a core component of discretionary spending across various socioeconomic groups in India. With a growing population of affluent consumers, demand is expected to persist, making organised players the primary beneficiaries of the ongoing changes within the sector.