Market Trends

Exponential Growth Expected in India's Jewelry Market

NEW YORK, May 16, 2024 /PRNewswire/ -- Recent analysis released by Technavio predicts a significant growth phase for the Indian jewelry market over the period from 2023 to 2027. With projections showing an increase of USD 21.54 billion in market size, the jewelry sector is anticipated to experience a compound annual growth rate (CAGR) of 5.54% within the forecast period.

This growth can be attributed to a range of factors. The detailed assessment of these projections along with historic data from 2017 to 2021 is available through Technavio's comprehensive reports. Interested parties can obtain these insightful market reports here.

Technavio has officially released its latest market research report titled "Jewelry Market in India 2023-2027". This report promises to be a valuable resource for industry stakeholders, providing a thorough analysis of the market landscape and its potential trajectory in the coming years.

Market Overview

Forecasts for the period 2023-2027 position the market on a trajectory of consistent growth, with the previous base year being 2022. This growth is being steered by the market's primary segments: types of jewelry such as gold, diamonds, and others; distribution channels including specialist retailers and online platforms; and the geographical spread across the Asia-Pacific (APAC) region, with a particular focus on India.

Analysts have conclusively profiled key companies in the market that are anticipated to influence this growth trend. These include prominent names such as ALANKEET CREATIONS LLP, Bhima And Bullion Pvt. Ltd., Derewala Industries Ltd., Dwarka Jewel, and many more that are foundational to India’s flourishing jewelry market landscape.

Driving Forces Behind the Market Surge

The transformation observed in India's jewelry market is, in part, due to a resurgence in online sales. The online marketplace is enticing consumers with its convenience and extensive selections, which have been further amplified in the wake of the COVID-19 pandemic. Notable industry players like Tanishq have witnessed a whopping 106% uptick in their online sales during 2020, marking a significant contribution of 13% to their total sales figures. Competitive pricing, particularly of gold jewelry, loose diamonds, and gemstones, is also playing a pivotal role, as consumers can now make more informed purchasing decisions from the comfort of their homes. Industry authorities like the World Gold Council foresee these trends as harbingers of a more enduring pivot to online sales, even beyond the pandemic's impact.

Online sales are not the only sector within the jewelry domain witnessing such a boost. The fine jewelry, accessories, watches, and the broader B2C enterprises are all experiencing exponential growth. The industry continues to navigate through factors such as currency exchange rates, import and export duties, and hallmarking standards that significantly influence its operation.

The Underlying Challenges

Despite the market's positive growth, the Indian jewelry sector faces continual challenges at its core. Given the centrality of gold within the industry, the high cost and fluctuation in prices of gold render a direct impact on affordability and demand. This was apparent during peaks in the gold price amid the pandemic, reaching a staggering Rs 56,191 (approx. USD 684) per 10 grams, resulting in dampened market demand.

The Indian jewelry landscape encompasses an expansive variety of offerings including an array of accessories, watches, luggage, bags, and retail sales that are impacted by consumer spending which is influenced by cultural occasions spanning from festivals like Baisakhi, Karva Chauth, Durga Puja, to auspicious days like Akshaya Tritiya and an array of wedding seasons.

India’s dynamic position as the largest exporter of jewelry globally factors in the collective efforts and craftsmanship of countless family jewelers and brands. These establishments cater to a diverse clientele seeking everything from stone-studded to imitation and luxury fashion jewelry. Each segment of the market, including gold, diamonds, platinum, ruby, and other precious stones, remains uniquely affected by various market dynamics, which are continually observed and reported by trade associations, currency statisticians, and organizations such as Statista.

For an in-depth analysis of the impact trends, key drivers, and challenges that are currently shaping the market, interested parties can purchase the full report here.

Segment Analysis

The comprehensive segmentation analysis highlights distinctive areas of market growth, dividing the domain into various categories and channels that cater to an extensive demographic of consumers.

1. Gold Jewelry Sector

In particular, gold jewelry dominates discussions within the B2C enterprise spectrum, driving remarkable sales across the categories of jewelry, accessories, watches, luggage, and bags. Rooted deeply in cultural tradition, gold purchases see seasonal peaks around traditional festivities and ceremonial events, which have historically spurred market sales. Celebratory events and national festivals are known to escalate consumption patterns. The nuanced and expansive export industry of India relies heavily on these cultural backdrops, supported by revered family jewelers and branded entities renowned for their mastery in gold jewelry.

2. Distribution Channels

Specialist retailers and the burgeoning realm of online sales compose the fundamental channels through which jewelry is distributed in the Indian market. These platforms not only guarantee accessibility but also ensure diversity in selection and competitive service to consumers.

3. Geographical Outlook

With a geographical lens, the market spans across the entire APAC region, with specific focus areas in subdivisions that harbor rich tradition and consumer bases such as India, which is also structurally supported by the wealth of artisanal expertise and generational knowledge present within the country.

Gold – The Timeless Trend

Focusing on gold as a segment, it's evident that the Indian jewelry market is robust, strongly influenced by cultural norms, exponentially rising consumer spending, and key celebratory occasions. India’s grandeur in gold is globally acknowledged, housing an extensive array of both family-owned and branded jewellers. The market's diversity is showcased through products that range from stone-studded to imitation and luxury fashion jewelry.

Statistical data on current exchange rates, along with the insights provided by trade associations, market forecasts from Statista, combine to offer a crystal-clear understanding of market behavior. Trust and authenticity, especially concerning gold and precious stones, remain essential considerations for the elite class and conscious consumers alike.

For a deeper dive into the market's intricate segmentation, geographical analysis, and forecast data extending from 2023 to 2027, interested readers can download a sample report that provides a snapshot of the expansive research conducted by Technavio.

Market Research Insights

The Jewelry Market in India is a cornerstone in the spectrum of merchandise exports with virtual Buyer-Seller Meets revolutionizing the way B2C enterprises project their products, which range from gemstones to lab-grown diamonds, and from accessories to luggage. Consumer behavior particularly around festive seasons and Indian weddings highlight the intrinsic value and unyielding demand for jewelry.

The export prowess of India takes center stage with its world-renowned quality and craftsmanship in gold which solidifies its stature as the largest exporter globally. These enduring market traits are indicative of the integral role that jewelry plays within the Indian cultural framework and the heightened global appetite for Indian traditional and modern designs.

Econometric Landscape

The jewelry industry stands as a proud pillar contributing extensively to India's economic fortitude. Encompassing gold, diamonds, pearls, and silver, the sector is revered not just for its cultural impact but also for its pursuit of innovation and increasing consumer awareness. The industry's design and craftsmanship are a magnet for worldwide clienteles, further emboldened by consumer trends, growing disposable income, and supportive government policies.

India's booming economy serves as a fertile ground for skilled workmanship and traditional techniques that speak volumes of its historical wealth and modern-day relevance. The projected growth of this sector is not simply a number; it represents an evolution resonating across today's global economy.

The Bigger Picture

To encapsulate the breadth of the market, Technavio’s report covers various critical aspects of the industry's workings. Including an executive summary, an in-depth market landscape, sizing, and segmentation. The report doesn't stop at just analyzing customer and geographic landscapes but dives deeper into trends, challenges, company overviews, and comprehensive analyses.

The voluminous appendices provided give readers the resources to understand the intricate details that govern this vibrant sector. Stakeholders looking to grasp the complete picture of India's jewelry market will find this report an indispensable tool.

About Technavio

Technavio stands at the vanguard of technology research and advisory firms globally with their finger on the pulse of emerging market trends. Their analysis provides strategic insights that empower businesses to seize market opportunities. Their expansive report library, which includes over 17,000 reports on various technologies and distributed across 50 countries, speaks for their authoritative presence in the industry.

Technavio's clientele is diverse, featuring enterprises of all magnitudes, including over 100 Fortune 500 companies. These organizations rely on Technavio's research for understanding developing market situations and for positioning themselves competitively within their respective industries.

Interested parties can reach Technavio research at www.technavio.com for further inquiries and resources.

SOURCE: Technavio