India’s Jewellery Industry Finds Structure in a Complex Market

India’s jewellery industry, long associated with tradition, craftsmanship, and intergenerational wealth, is undergoing a structural evolution. While demand remains deeply cultural and resilient, the way jewellery is bought, sold, and branded is increasingly shaped by formalisation, organized retail, and digital adoption. As of 2024, India’s jewellery market was valued at approximately $90Bn, with projections estimating it will cross $150Bn by 2033, growing at a CAGR of 5.2%.

India is the second-largest consumer of gold jewellery globally and a critical player in the international gems and jewellery value chain. The country’s gems and jewellery export sector, already among the world’s largest, is poised for further growth – with exports projected to reach $100Bn by 2027. Between April and December 2024, India exported ₹1.84 lakh crore ($21.36Bn) worth of gems and jewellery. Of this, cut and polished diamonds accounted for the largest share at 50.2%, followed by gold jewellery at 29.2% and lab-grown diamonds at 5.2%.

India remains the top global exporter of cut and polished diamonds, and its expertise in design, craftsmanship, and volume production continues to reinforce its position in international markets.

Domestically, jewellery demand has shown remarkable resilience despite global volatility, anchored in culturally significant events like weddings and festivals. This consistent base of volume demand, coupled with export-led momentum, makes India’s jewellery industry a cornerstone of both its cultural economy and global trade footprint.

India’s jewellery market has witnessed a striking formalisation wave over the past five years. Organised retail, which accounted for just 22% of the total market in FY19, has grown to represent 36-38% by FY24, according to Motilal Oswal’s 2024 thematic report. The organized market reported 18-19% revenue CAGR, far outpacing the broader market’s ~8% CAGR over the same period. What’s more, the top 10 organised jewellery players now command over 30% of the total market, compared to under 20% in FY19, underscoring increasing consumer preference for trusted, brand-backed formats.

This formalisation is being fuelled by a mix of factors: transparent pricing, standardised quality via BIS hallmarking, availability of EMI schemes, and strong after-sales engagement. Leading retailers like Titan’s Tanishq, Kalyan Jewellers, and Senco Gold & Diamonds are leveraging these shifts to widen their footprint across metros and Tier II/III cities, often through asset-light franchise formats that allow rapid expansion without heavy capital expenditure.

Consumer behaviour in India’s jewellery market is also evolving. Bridal jewellery continues to dominate (~55% of demand), but segments like daily-wear jewellery are also becoming significant with 30-35% share. Working women, urban millennials, and younger Gen Z consumers are driving demand for lightweight, occasion-agnostic jewellery with fashion-forward aesthetics. Another 10% of market share is now held by fashion jewellery, which further reinforces the trend toward discretionary and self-purchase-led growth.

This changing product mix is strategically important for retailers. It not only supports higher average realisations per user (ARPU), but also enables more frequent consumer engagement, in contrast to the cyclical nature of wedding-related purchases. Companies like Bluestone and CaratLane have successfully tapped into this evolving demand with contemporary designs, modular pricing, and digital-first engagement tools like virtual try-ons and design consultations.

Financially, the jewellery sector exhibits stable and resilient operating metrics. Industry averages hover around 12% gross margins, 7% EBITDA margins, and 4% PAT margins, according to the same Motilal Oswal report. Notably, leading players in the organized market like Titan and Kalyan have consistently outpaced broader market’s margins over the past several years, driven by network expansion, consumer trust, and efficient inventory cycles.

Importantly, 78% of organised jewellery store count is concentrated in India’s top 10 states, which together represent over 68% of India’s GDP. This regional concentration is deliberate, aligning distribution with spending power. Players are now targeting hyper-local strategies to penetrate deeper into untapped Tier III and rural markets, without compromising on service or brand identity.

Titan holds the lion’s share in the organized retail sector with ~45% share in a network of over 900 stores spanning Tanishq, Caratlane, Mia, and Zoya. Other major retail players include Malabar, Kalyan, and Senco.

This organised expansion has supported stronger consumer trust, thanks to transparent pricing, BIS hallmarking, certification, and increasingly omnichannel access.

Digital channels remain nascent but are expanding. As of 2024, the majority of jewellery purchases still happen in physical retail, but platforms like CaratLane and Bluestone are enabling browsing, customisation, and online consultations. Customization, virtual try-ons, and tech-backed certifications are becoming mainstream, especially for high-value purchases.

Jewellery is also becoming more integrated into lifestyle branding. Premiumization is visible not just in product design, but also in store experience and after-sales care. Younger buyers are driving demand for certified solitaires, ethically sourced gold, and lab-grown diamonds.

India’s international positioning remains strong. The recently signed India-UK Free Trade Agreement is expected to double exports to the UK, reaching $2.5 billion within two years, and potentially growing total bilateral gems and jewellery trade to $7 billion. The FTA will provide new opportunities for growth and investment.

India’s jewellery industry is moving toward a more structured, consumer-aligned model. Organised retailers are consolidating market share, while demand is evolving from traditional bridal focus to a broader set of use cases, including gifting, daily wear, and investment.

Growth will likely continue, supported by expanding store networks, digital enablement, and favourable trade dynamics. Over time, the sector will reward those players who can balance trust, scale, and modern design language, while staying responsive to both domestic sentiment and global market shifts.

This structural shift complements themes from Macro Memo – May and The Strategic Blueprint Behind Value Creation in VC & PE.

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