According to industry estimates quoted by brokerages, the jewelery market will achieve a compound annual growth rate (CAGR) of 15-16 per cent, reaching $145 billion by FY2028.
Overall, the jewelery sector has seen around 8 per cent revenue CAGR during FY 2019-24, reaching Rs 6,40,000 crore in market value, with the organized sector growing at 18-19 per cent.
The organized 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 for such rapid growth in the industry, ranging from rising disposable incomes (high per capita growth in double digits), better mix for regular wear (beyond weddings and investment-based), increased product offerings (e.g. Are inspired. designs and diamonds), trust-building through hallmarking, and better shopping experience at organized retail outlets,” the report said.
The top 10 states, which include Tamil Nadu, Maharashtra, Karnataka, West Bengal and Uttar Pradesh, account for 78 per cent of the organized retail network and contribute 68 per cent to GDP.
The brokerage is bullish on the jewelery sector as it believes consumers are increasingly shifting towards organized players.
In FY 2018, the jewelery market was valued at US$48–50 billion, with the organized market share at 20–22 per cent.
From FY18 to FY24, the total market registered a CAGR of 9-10 per cent, while the organized market registered a CAGR of over 17 per cent.
The last three years have been particularly strong for the industry, which saw 20 percent to 30 percent price growth for the total and organized market segments.
Overall, the jewelery sector has seen around 8 per cent revenue CAGR during FY 2019-24, reaching Rs 6,40,000 crore in market value, with the organized sector growing at 18-19 per cent.
The organized 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 for such rapid growth in the industry, ranging from rising disposable incomes (high per capita growth in double digits), better mix for regular wear (beyond weddings and investment-based), increased product offerings (e.g. Are inspired. designs and diamonds), trust-building through hallmarking, and better shopping experience at organized retail outlets,” the report said.
The top 10 states, which include Tamil Nadu, Maharashtra, Karnataka, West Bengal and Uttar Pradesh, account for 78 per cent of the organized retail network and contribute 68 per cent to GDP.
The brokerage is bullish on the jewelery sector as it believes consumers are increasingly shifting towards organized players.
In FY 2018, the jewelery market was valued at US$48–50 billion, with the organized market share at 20–22 per cent.
From FY18 to FY24, the total market registered a CAGR of 9-10 per cent, while the organized market registered a CAGR of over 17 per cent.
The last three years have been particularly strong for the industry, which saw 20 percent to 30 percent price growth for the total and organized market segments.
