With over 62 per cent share in FY24, the market is currently dominated by the unorganised jewellers
Highlighting that the Indian jewellery industry is undergoing a significant transformation, a report has revealed that organised players are expected to account for around 43 per cent of the domestic jewellery market size by the financial year 2028.
With over 62 per cent share in FY24, the market is currently dominated by the unorganised jewellers as the organised players make up 38 per cent of the market in the same time period, according to a report by Minerva Capital Research Solutions.
As far as the market size is concerned, the Indian domestic jewellery market size is expected to grow at 16 per cent compounded annual growth rate from FY24 to FY28 to grow from USD 80 billion to USD 145 billion.
On the regional front, the report highlighted that southern states contribute around 40 per cent of the Indian gold jewellery market. The western region contributed around 25 per cent in FY23. Gross margins for plain gold jewellery ranges from 10 per cent to 14 per cent, while diamond-studded has higher 30 per cent to 35 per cent gross margins.
The report noted that southern consumers prefer buying traditional plain gold jewellery while northern and western regions witness higher studded and lightweight jewellery. Fine jewellery contributes around 90 per cent or USD 63 billion (FY23) of the jewellery market bifurcated across gold and non-gold.
Pointing out the breakup of jewellery by requirement in India, the report noted that bridal wear holds the largest share (55 per cent), followed by daily wear (35 per cent) and fashion (10 per cent) in FY23. Going ahead, the bridal wear will dominate the space with 57 per cent by FY28, followed by 32 per cent in FY28.
