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MUMBAI — India's jewellery retail sector has recorded rapid growth in the last five years surging from INR 5,04, 400 crore in 2019 to 6,40,000 crore in 2024 on the back of rising incomes in the economy and greater trust in the products due to hallmarking, according to a Motilal Oswal report.
Industry estimates cited by the brokerage project the jewellery market to achieve a 15-16 per cent compound annual growth rate (CAGR), reaching $145 billion by FY28.
Overall, the jewellery sector has seen an approximately 8 per cent revenue CAGR during FY19-24, reaching INR 6,40,000 crore in market value, with the organised segment growing at 18-19 per cent.
The organised market is expected to grow at over 20 per cent CAGR, accounting for 42-43 per cent of the total market.
“There are multiple drivers in the industry-leading to such rapid growth, driven by rising disposable income (higher per capita growth in double digits), an improving mix for regular wear (beyond weddings and investment-led), enhanced product offering (such as design and diamonds), trust-building through hallmarking, and a better buying experience at organized retail outlets,” the report states.
The top 10 states, which include Tamil Nadu, Maharashtra, Karnataka, West Bengal, and Uttar Pradesh, account for 78 per cent of the organised retail network and contribute 68 per cent of the GDP.
The brokerage is optimistic about the jewellery sector as it believes consumers are increasingly shifting towards organised players.
In FY18, the jewellery market was valued at USD 48–50 billion, with the organised market accounting for 20-22 per cent share.
From FY18 to FY24, the total market reported a CAGR of 9–10 per cent, while the organized market registered a CAGR of over 17 per cent.
The past three years have been especially strong for the industry, which saw a 20 per cent to 30 per cent value growth for the total and organised market segments.