The ongoing shift from unbranded to branded products, driven by premiumisation and ecommerce expansion, is set to spur robust volume and value growth
Emphasising that the sector has recovered with a 37 per cent compounded annual growth rate (CAGR) since calendar year 2020, a report has highlighted that India’s luggage industry is projected to grow at 12 per cent CAGR to Rs 267 billion by CY2028.
Motilal Oswal Financial Services, in its report, mentioned that branded players, holding 52 per cent market share, are expected to grow faster, led by increased disposable incomes and rising domestic and international travel. Key brands include VIP, Samsonite and Safari, as per the report.
“The ongoing shift from unbranded to branded products, driven by product innovation, premiumisation, and ecommerce expansion, is set to spur robust volume and value growth in the organised segment. Additionally, industry experts note that luggage is increasingly viewed as a status symbol, further fueled by evolving social trends,” the report pointed out.
Rising income levels in urban India are shifting consumer preferences toward premium luggage, with greater emphasis on quality, brand reputation, technology, and status. This marks a clear move away from basic, utility-driven products. The report added that steady increases in air and rail passenger traffic strongly correlate with rising luggage industry revenues.
Weddings significantly boost luggage demand in India, driven by gifting customs, trousseau packing, and the rising trend of destination weddings. The market witnessed peak demand during November- December 2024, with over 4.8 million weddings during this period alone. For this financial year, the number of auspicious wedding dates is likely to rise to 67, marking a 20 per cent year-on-year (YoY) rise, ensuring cyclical but predictable demand patterns.
The report further emphasised that the resurgence of academic activities and increasing student mobility are driving significant and steady demand for luggage products like backpacks, duffel bags, and travel luggage in India. Factors fuelling this include hostel life, educational trips, and university admissions, with parents preferring branded, durable, and ergonomic products. The revival of corporate travel and the hybrid work model have bolstered demand for compact, professional luggage solutions, it added.
