India - Jewelry Market by Type, and Distribution Channel - Forecast and Analysis 2023-2027

India Jewelry Market Forecast 2023-2027

The India Jewelry market size is estimated to grow by USD 21.54 billion at a Compound annual growth rate (CAGR)  of 5.54% between 2022 and 2027. The market is deeply entrenched in cultural traditions, reflecting the nation's rich heritage and the significance of adornment. With rising disposable income and technological advancements, there's a notable surge in demand for jewelry, both traditional and contemporary. The shift towards online sales channels signifies evolving consumer preferences and accessibility. Additionally, the market witnesses increasing demand for lightweight and fusion jewelry, catering to modern tastes. However, challenges such as high gold prices, competition from counterfeit products, and a shortage of skilled labor pose hurdles to market growth. This market analysis and report includes market drivers, trends, and challenges. 

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The market exhibits a fascinating blend of tradition and modernity, deeply rooted in cultural festivities like Baisakhi, Karva Chauth, Durga Puja, Gudi Pavda, and Akshaya Tritiya. With exponential trend smoothing, there's a noticeable surge in consumer spending per capita, particularly during auspicious occasions and Indian weddings. India, known as the largest exporter of cut and polished diamonds, plays a pivotal role in global jewelry consumption. Gold remains a timeless favorite, reflecting India's enduring love affair with precious metals and ornate craftsmanship.

Market Dynamics

The gold and diamond trade significantly contributes to the Gross Domestic Product, with merchandise exports bolstered by the gems and jewelry sector. Export promotion efforts are amplified through Virtual Buyer-Seller Meets, facilitating transactions of diamond and gold ornaments. The Gem & Jewelry industry, encompassing lab-grown diamonds, thrives with B2C enterprises offering accessories like watches and jewelry. Retail sales surge alongside consumer spending, marked by traditional occasions like Baisakhi and Karva Chauth. Indian weddings drive global jewelry consumption, making India the largest exporter of cut and polished diamonds. Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Drivers

The cultural significance of jewelry is notably driving market growth. Gold has traditionally been associated with wealth and prosperity, whereas jewelry has long played a significant role. India is the world's second-largest consumer of gold due to its cultural significance, particularly during religious and socially significant celebrations like weddings, festivals, and other occasions. For instance, the bride typically wears hefty gold jewelry during the wedding ceremony and weddings (across all communities and religions) as a symbol of her family's wealth and status.

The market has grown significantly as a result of the high demand for weddings. In fact, the Indian wedding industry is thought to be worth USD 50 billion, with jewelry accounting for a significant portion of this total. Similarly, people buy gold jewelry during festivals like Diwali, Dussehra, and Akshaya Tritiya because they believe days like these to be lucky. As a result, demand for gold jewelry (and gold prices) rises during such auspicious occasions. According to the World Gold Council, during the holiday season in 2020 compared to 2019, the demand for gold increased by 35%. Hence, such factors will spur the growth of the market during the forecast period.

Significant Market Trends

The rise in online sales is an emerging trend in market growth. Online jewelry sales are rising as more people choose to buy jewelry online due to its convenience and a large selection of goods. The COVID-19 pandemic has accelerated the trend and led to an increase in online shopping. One of the top jewelry brands, Tanishq, for instance, reported a 106% increase in online sales in 2020, with the online channel accounting for 13% of its total sales.

The competitive pricing on e-commerce platforms, which enables customers to compare prices and make informed decisions, is another factor contributing to the increase in online sales. In the upcoming years, the trend is also expected to persist, with a noticeable shift in the market's emphasis on online sales. In conclusion, the trend of online jewelry sales is being driven by the convenience and wide range of products available online. Hence, such factors will boost the growth of the market during the forecast period.

Major Market Challenge

The high gold prices are major challenges impeding market growth. Given that gold is the primary component of Indian jewelry, it can be challenging for jewelers to offer customers jewelry that is affordable given the ongoing fluctuations in gold prices. As jewelers struggle to keep their prices for their products competitive during times of high gold prices, sales of gold jewelry suffer. The high price of gold also causes a shift in consumer purchasing patterns, favoring lighter, more affordable jewelry, which has an impact on sales of traditional heavy gold jewelry.

Additionally, it is anticipated that during the forecast period, the price of gold will increase due to inflation and economic unpredictability, causing fluctuations in gold prices. Given that Indian consumers still favor gold jewelry, this poses a significant challenge for the country's jewelry industry. Hence, such factors will likely hinder the growth of the market during the projection period.

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Market Segmentation

This market growth analysis report extensively covers market segmentation by type (gold, diamond, and others), and distribution channel (specialist retailers and online). It market research and growth report also includes an in-depth analysis of drivers (factors influencing market growth), trends (emerging patterns or shifts in consumer behavior), and challenges (barriers or obstacles faced by the industry). In India, the jewelry market encompasses various types, reflecting the rich tradition and cultural heritage of the country. The type segment predominantly includes gold and diamond trade, which has been a cornerstone of India's gems and jewelry sector for centuries. This segment contributes significantly to the country's Gross Domestic Product (GDP) and merchandise exports, with India being a prominent player in the global gems and jewelry market. To promote exports and facilitate trade, the industry often organizes Virtual Buyer-Seller Meets, connecting manufacturers and buyers worldwide. Alongside traditional diamond and gold ornaments, the market also embraces modern trends, including lab-grown diamonds and a diverse range of accessories, catering to the preferences of B2C enterprises and consumers alike. Additionally, watches have emerged as sought-after accessories, adding versatility to India's vibrant jewelry market.

By Type 

The market share growth by the gold segment will be significant during the forecast period. Gold has long held a prominent position in the Indian Market and still does. The demand has increased year after year as a result of rising income levels and a cultural preference for metal.

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The gold segment was valued at USD 41.33 billion in 2017 and continued to grow until 2021. The market environment for gold jewelry is subject to change based on gold prices, which are in turn influenced by a number of regional and global factors, such as inflation, monetary policies, and global trade. The emergence of substitute materials and styles has also affected the younger generation's desire for gold jewelry. However, despite these challenges, including the availability of alternative materials and designs, it is still worn on special occasions and is a preferred investment option. As a result, gold is expected to witness an increase in demand in the market in focus, hence, driving the market growth during the forecast period.

Market Major Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the  Market. Some of the major companies in the market include:

Essentials Jewelry - The company offers sterling silver jewelry in a wide variety of different styles. The key offerings of the company include jewelry such as gemstones and silver.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:  ALANKEET CREATIONS LLP, Bhima And Bullion Pvt. Ltd., Derewala Industries Ltd., Dwarka Jewel, DWS Jewellery Pvt. Ltd., Essentials Jewelry, Gurukrupa Gems, Hari Krishna Exports Pvt. Ltd., Joyalukkas India Ltd., Kalyan Jewellers India Ltd., Kanhai Jewels, Malabar-Gold and Diamonds, Nsb Jewellery, PC Jeweller Ltd., Rajesh Exports Ltd., Titan Co. Ltd., Tribhovandas Bhimji Zaveri Ltd., Vaibhav Global Ltd., Vivah Creation, and Padmavati Jewellery

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

The market plays a pivotal role in the country's economy, contributing significantly to the Gross Domestic Product through its thriving gems and jewellery sector. India stands as one of the world's largest exporters of gold and diamond ornaments, leveraging export promotion initiatives and platforms like Virtual Buyer-Seller Meets to bolster trade. The market encompasses a diverse range of offerings, from traditional gems & jewelry to modern accessories such as watches and bags. Consumer spending, especially during cultural events like Baisakhi, Karva Chauth, Durga Puja, and Gudi Pavda, fuels the industry's growth, reflecting an exponential trend in retail sales and consumer spending per capita. India's status as a global hub for cut and polished diamonds further solidifies its position in the global jewelry consumption landscape.

The market encompasses a dynamic landscape, driven by the country's rich tradition in gold and diamond trade and its prominence in merchandise exports of diamond and gold ornaments. Emerging trends, such as the rise of Lab-grown Diamond and the advent of B2C enterprises, are reshaping the industry. Events like the Internal Jewellery Show attract exhibitors, international visitors, and delegations, fostering collaborations and showcasing the latest innovations. India's role as a gold refinery and jewelry unit is underscored by its production of plain gold, gold-studded and diamond-studded jewelry, silver jewelry, and precious coins. Regulatory measures like custom duty and hallmarking ensure quality in the fine jewelry segment, while initiatives like the gold monetization scheme incentivize responsible gold ownership.

The market thrives on a myriad of factors, including the cultural significance of Indian weddings and the demand for exquisite gold-studded jewelry. With a growing trend towards luggage as a fashion accessory, the market is witnessing an exponential trend smoothing in consumer preferences. Consumers also seek investment options in precious metals like loose diamonds, silver coins, and gold coins, navigating challenges such as import duty regulations. Jewelry manufacturers cater to this demand while facilitating access through low-cost gold-metal loans. Despite fluctuations, the enduring demand for jewelry underscores its enduring appeal and economic significance in India's vibrant market landscape.

India Jewelry Market Scope
Report Coverage	Details
Page number	120
Base year	2022
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 5.54%
Market growth 2023-2027	USD 21.54 billion
Market structure	Fragmented
YoY growth (%)	5.5
Regional analysis	India
Performing market contribution	India at 100%
Key consumer countries	India and APAC
Competitive landscape	Leading companies, Competitive Strategies, Consumer engagement scope
Key companies profiled	ALANKEET CREATIONS LLP, Bhima And Bullion Pvt. Ltd., Derewala Industries Ltd., Dwarka Jewel, DWS Jewellery Pvt. Ltd., Essentials Jewelry, Gurukrupa Gems, Hari Krishna Exports Pvt. Ltd., Joyalukkas India Ltd., Kalyan Jewellers India Ltd., Kanhai Jewels, Malabar-Gold and Diamonds, Nsb Jewellery, PC Jeweller Ltd., Rajesh Exports Ltd., Titan Co. Ltd., Tribhovandas Bhimji Zaveri Ltd., Vaibhav Global Ltd., Vivah Creation, and Padmavati Jewellery
Market dynamics	Market trends and analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If ou rmarket trends and analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period 2023-2027
• Detailed information on factors that will drive market growth and forecasting  during the next five years
• Precise estimation of the Market  size and its contribution to the parent market
• Accurate predictions on upcoming market growth and trends and changes in consumer behavior
• The growth of the Market  industry across India
• A thorough analysis of the market’s competitive landscape and detailed information on companies
• Comprehensive details of factors that will challenge the growth of Market  companies

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