India’s luxury goods market to grow at 1.34% CAGR from 2024-2028: Report
15 January 2024, Mumbai
Currently worth $7.86 billion, India’s luxury goods market revenue is projected to grow at 1.34 percent CAGR from 2024–2028. As per a report by Bain & Co., India's luxury market is expected to grow exponentially to 3.5 times its current size by 2030.
One of the fast-growing luxury markets in the world, has the potential to become the next big thing in the industry. The market's largest segment is prestige cosmetics and fragrances, with a market volume of $2.28 billion in 2024.
Evolutionary paradigm
In a bid to tap into new demographics and showcase their collections, luxury brands have collaborated with Indian retailers in the recent past. This harmonious fusion has brought a diverse spectrum of luxury brands within arm's reach of Indian enthusiasts.
Reliance Brands (RBL) has partnered with over 60 premium global brands such as Burberry, Giorgio Armani, Valentino and Balenciaga. Aditya Birla Fashion Retail partnered with the niche French luxury department store chain Galleries Lafayette.
Data-point
The Indian luxury market maintained its exclusivity with a high price point and limited sales volumes and outlets. According to recent reports, the number of millionaires in India is projected to grow by 105 percent by 2026. These UHNIs will drive the explosive expansion of the Indian luxury market.
A report by Cushman and Wakefield notes that the supply of new retail space in the country’s top eight cities will continue as developers strive to meet rising demand from retailers.
