India Gems & Jewelry Market Outlook to 2028

India Gems & Jewelry Market Overview

India Gems & Jewelry market was valued at USD 90 Bn in 2023. This growth is driven by rising disposable income, and a strong cultural affinity for jewelry in Indian society. Additionally, the expanding middle class and their growing preference for branded jewelry contribute significantly to market growth.

Key players in the Indian gems and jewelry market include Tata Group's Tanishq, Kalyan Jewellers, Malabar Gold and Diamonds, PC Jeweller, and Joyalukkas. These companies have a strong presence across the country and dominate the organized sector of the market. Their extensive retail networks and brand loyalty have been pivotal in capturing a significant market share.

In 2023, Malabar Gold and Diamonds announced plans to invest up to Rs 4,000 crore on capacity expansion and opening new stores. This move is expected to strengthen its market position and increase its revenue share in the domestic market.

India Gems & Jewelry Current Market Analysis

Jewelry holds substantial cultural and traditional significance in India, driving consistent demand, especially during festivals and wedding seasons. It is often considered an essential part of rites of passage, symbolizing wealth, status, and heritage in Indian society.

The impact of these growth drivers is evident in the robust performance of the organized jewelry sector. Branded jewelry's market share is increasing as consumers prioritize quality, authenticity, and after-sales service. Additionally, the trend towards customization and unique designs is attracting a younger demographic.

The western region of India, particularly Maharashtra and Gujarat, dominates the gems and jewelry market, accounting for over 74% of total exports in 2022-23. This dominance is attributed to the presence of major diamond cutting and polishing hubs in these states, as well as high consumer spending power.

Market Segmentation

The India Gems & Jewelry Market can be segmented based on several factors:

By Product Type: In 2023, the India Gems & Jewelry Market is segmented by Product Type into Gold Jewelry, Diamond Jewelry & others. In 2023, Gold jewelry reigns as the most dominant sub-segment, holding a substantial market share. Gold jewelry is dominant due to its cultural significance, investment value, and liquidity. The tradition of buying gold during festivals and weddings ensures a steady demand.

By Sales Channel: In 2023, the India Gems & Jewelry Market is segmented by Sales channel into Offline & Online channels. In 2023, the offline segment emerges as the most dominant, commanding a significant percentage of the market share. Offline channels dominate due to the traditional preference for physical stores where customers can see and try the jewelry before purchasing.

By Region: In 2023, India Gems & Jewelry Market by region into North India, South India, East India & West India. West India is dominating the market with a significant share. Leading jewelry brands have an extensive retail presence in West India, further solidifying the region's market dominance. The availability of a wide range of products and strong brand loyalty contribute to higher sales volumes.

India Gems & Jewelry Market Competitive Landscape

Company

Establishment Year

Headquarters

Tanishq

1994

Bengaluru, Karnataka

Kalyan Jewellers

1993

Thrissur, Kerala

Malabar Gold

1993

Kozhikode, Kerala

PC Jeweller

2005

New Delhi

Joyalukkas

1987

Thrissur, Kerala

Tanishq is a market leader, is renowned for its extensive product range and strong brand loyalty, influencing market standards in quality and design. With over 300 stores in 2023, Tanishq continues to set high benchmarks in the jewelry industry, contributing to the market's growth and competitiveness.

Kalyan Jewellers has fortified its market position with a wide retail network and strategic celebrity endorsements. In 2021, Kalyan Jewellers raised INR 800 crore through an IPO, enabling further expansion and strengthening its market presence.

Malabar Gold is distinguished for its extensive collection and competitive pricing, consistently expanding its retail presence. In 2023, Malabar Gold introduced a blockchain-based system to provide complete transparency on the origin and lifecycle of its jewellery products.

India Gems & Jewelry Industry Analysis

India Gems & Jewelry Market Growth Drivers:

Rising Disposable Income: India's per capita income saw a substantial increase from INR 72,805 in 2014-15 to INR 98,374 in 2023. The growing middle class, with its increased purchasing power, is driving higher demand for both gold and diamond jewelry.

Urbanization and Lifestyle Changes: In 2022, the urban population in India reached 1.41 billion, out of which 35% of the population resides in urban India. The urban population tends to spend more on luxury items, including jewelry, compared to their rural counterparts, significantly boosting market growth.

Digital Transformation and E-Commerce: Till September 2023, India had 510 million internet users with an internet penetration of 51.5% across the country. This digital penetration has facilitated the growth of online jewelry sales, offering consumers a convenient and varied shopping experience & jewelry sellers have embraced this change.

India Gems & Jewelry Market Challenges:

Counterfeit and Low-Quality Products: The prevalence of counterfeit and low-quality products in the market poses a significant challenge. The Gem and Jewellery Export Promotion Council (GJEPC) reported that about 20% of the jewelry sold in India is counterfeit or of substandard quality. These products not only deceive customers but also tarnish the reputation of genuine brands, affecting consumer trust and market growth.

Regulatory and Compliance Issues: The implementation of the Goods and Services Tax (GST) in 2017, with a 3% tax on gold, has impacted the jewelry industry. Additionally, the requirement for mandatory hallmarking, enforced in June 2021, adds to compliance costs and complexities for jewelers, especially small and medium enterprises (SMEs), as per the Bureau of Indian Standards.

Competition from Imitation Jewelry: The market for imitation and fashion jewelry is growing rapidly. Imitation jewelry manufacturers can quickly adapt to changing fashion trends and offer a wide range of designs, catering to the preferences of fashion-conscious consumers. This growth is driven by the affordability and wide variety of designs in imitation jewelry, posing a threat to the traditional gems and jewelry market.

India Gems & Jewelry Market Government Initiatives

Gold Monetization Scheme (2015): The Gold Monetization Scheme aims to mobilize idle gold held by households. As of December 2021, over 20 tonnes of gold had been mobilized under this scheme, according to the Ministry of Finance. This initiative is helping to recycle gold within the country, making it available for jewelers and reducing import costs.

Jewelry Park Project (2020): The Maharashtra government announced the establishment of a jewelry park in Navi Mumbai. This project, with an investment of INR 50,000 crore, aims to provide state-of-the-art infrastructure for jewelry manufacturing, boosting exports and generating employment.

Reduction in Import Duty (2021): The Indian government reduced the import duty on gold from 12.5% to 7.5%, as per the Union Budget 2021-22. This reduction has made gold more affordable, leading to increased sales in the domestic market and enhancing the competitiveness of Indian jewelers globally.

India Gems & Jewelry Future Market Outlook

The Indian Gems and Jewelry market is projected to grow rapidly. This growth will be driven by rising incomes and evolving consumer preferences.

Future Market Trends

Customization and Personalization: Jewelers like Malabar Gold & Diamonds allow customers to choose the metal, engraving style and font for a truly one-of-a-kind creation. Popular choices of jewelry include name necklaces, customized pendants, and personalized bracelets that can feature names, initials, dates or inspiring messages. Therefore, this trend will drive jewelers to offer bespoke services, enhancing customer satisfaction and loyalty.

Technology Integration: The adoption of advanced technologies such as blockchain and 3D printing for customized jewelry designs will revolutionize the market. 3D printing will enable jewelers to offer bespoke services, meeting the growing demand for personalized jewelry. These help in reducing the risk of counterfeit products, which is a major issue in Indian markets.
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