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Organized players in the Indian gold jewellery industry are expected to grow faster than the overall industry and capture a 45 per cent market share by FY30, according to a report by Nomura.
The report highlighted that the Indian jewellery market has seen significant expansion over the last few years. It grew from USD48 billion in FY18 to USD90 billion in FY25, reflecting a compound annual growth rate (CAGR) of 9 per cent. Looking ahead, the market is projected to expand further to USD150 billion by FY33E. It stated "Over FY18-25, the organized players grew 1.5x faster than the industry at a 14 per cent CAGR, with their share rising from 30 per cent in FY18 to 40 per cent in FY24; this is expected to reach 45 per cent by FY30E". The market share of organized players improved from 30 per cent in FY18 to 40 per cent in FY24 and is projected to reach around 45 per cent by FY30E. Nomura noted that this structural growth is largely underpinned by India's strong cultural affinity for jewellery. Weddings, which account for 50-55 per cent of the jewellery market, continue to be a key demand driver, supported by favourable demographics. Nearly 25 per cent of India's population falls in the "marriageable" age group, a number that is expected to rise from 365 million in 2023 to 390 million by 2030. In addition, a rising income pyramid is fueling growth in the daily wear and fashion jewellery segment. The report also said that organized players are benefitting from a combination of regulations, better workmanship, and high standards of purity and transparency, which matter significantly in a trust-sensitive category like jewellery. Despite the challenge of high gold prices, organized players have adapted by introducing innovative offerings such as installment schemes, old gold exchange programs, and lightweight jewellery. They are also leveraging opportunities in e-commerce, where penetration remains at just 6 per cent, and expanding their physical presence into untapped Tier 2, Tier 3, and Tier 4 markets. These strategies are expected to ensure that organized players continue to grow faster than the overall industry. The report added that jewellery is a staple within the discretionary sector, purchased across economic classes. With the affluent and elite income population rising steadily, demand is expected to remain strong, making organized players the key beneficiaries of the sector's ongoing transformation. (ANI)
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