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The India jewelry market size is projected to grow by USD 21.54 billion at a CAGR of 5.54% between 2022 and 2027. Growth is driven by rising disposable income, technological advancements, and a shift toward online sales channels. Increasing demand for lightweight and fusion jewelry as well as diamond jewelry also reflects evolving consumer preferences, despite challenges like high gold prices and counterfeit competition.
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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. This market analysis and report includes market drivers, trends, and challenges.
The Indian jewelry market, encompassing the gems and jewellery sector, is driven by a demand for plain gold, gold-studded jewellery, diamond-studded jewellery, silver jewellery, loose diamonds, and luxury fashion jewellery. Key players include jewellery manufacturers and family jewellers. Events like the Internal Jewellery Show and innovations in gold refineries and jewellery units highlight industry growth. Trends include branded jewellery, platinum, ruby, stone-studded jewellery, imitation jewellery, and high-end fine jewellery segments. Market dynamics are analyzed through Statista market models, considering factors like luggage, bags, and workforce needs in this evolving sector.
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 & Jewellery industry, encompassing lab-grown diamond, 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. The gold refinery and jewellery unit play crucial roles in the Indian market, driving the demand for jewellery. Key segments include silver coins, gold coins, and the fine jewellery segment, reflecting a robust interest in diverse, high-quality adornments. 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.
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.
Moreover, 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.
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.
Moreover, 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 market growth and trends during the forecast period.
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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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.
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.
The gems and jewelry sector is a dynamic industry that encompasses a wide range of products, including gold-studded jewelry, diamond-studded jewelry, and silver jewelry. It caters to various buyers, from the elite class to women seeking trust in their purchases. The sector also includes lab-grown diamonds and fine jewelry segments, offering a diverse selection to international visitors and buyers.
Moreover, key events like internal jewelry shows attract exhibitors, delegations, and jewelry manufacturers, showcasing the latest trends and designs. The industry is also influenced by factors such as current exchange rates, import duty, and custom duty, with trade associations and statistical offices providing valuable insights.
Additionally, initiatives like the gold monetisation scheme and low-cost gold metal loans support the sector's growth, while hallmarking ensures quality assurance for consumers. Overall, the gems and jewelry sector remains a vibrant and integral part of the global economy, driven by innovation and consumer demand. The internal jewelry show featured a variety of gem and jewelry items, including lab-grown diamonds, showcasing the industry's latest trends and innovations.
Market Scope |
|
Report Coverage |
Details |
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 our market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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