Indian jewellery industry organised retail rose to 36–38% in FY25

Indian jewellery industry organised retail rose to 36–38% of the market in FY25 from 22% in FY19, a gain of 14–16 percentage points. The supplied industry data attributes the structural shift to hallmarking, Goods and Services Tax (GST) compliance and consumer preference for branded jewellery, although unorganised sellers retained 62–65% of the market.

Why has organised retail share in the jewellery industry risen?

Organised retail share in the jewellery industry has risen because compliance-led reforms and branded purchasing have moved more sales to formal retailers. The increase from 22% in FY19 to 36–38% in FY25 occurred over six financial years, while the remaining 62–65% share held by unorganised sellers shows that formalisation has not yet reshaped the majority of the market.

Hallmarking and GST are the two policy and compliance mechanisms identified in the industry data as supporting this transition. Hallmarking relates to jewellery quality certification, while GST brings transactions into the indirect-tax system. Continued growth in organised share depends on retailers maintaining compliance and consumers continuing to choose branded jewellery over unorganised alternatives.

How large is organised retail compared with unorganised sellers?

Organised retail remained smaller than unorganised retail in FY25, despite reaching 36–38% of the jewellery industry. Unorganised sellers accounted for 62–65%, meaning that organised chains and platforms must continue converting existing purchases or grow faster than smaller retailers for their market share to rise further.

The available FY23 and FY24 data show that the value of organised players increased alongside the longer-term share shift. These figures measure organised retail value, whereas the FY19 and FY25 figures measure its share of the total market, so they are different indicators.

Organised retail value increased by Rs 35,500 crore between FY23 and FY24, from Rs 1.895 lakh crore to Rs 2.25 lakh crore. The domestic jewellery market was valued at more than Rs 5 lakh crore, but the source does not provide a single FY25 market-value base for the 36–38% organised-share estimate. An exact FY25 rupee value for organised retail therefore cannot be calculated from the supplied data.

Which jewellery categories matter most to organised retail growth?

Gold jewellery matters most because it accounts for 80–85% of the jewellery industry, while studded jewellery accounts for 15–20%. A separate chart places gold at 82% and studded jewellery at 17%, with the difference reflecting rounded chart values against the ranges stated in the text.

Fine jewellery represents nearly 90% of the overall market, compared with 10% for other categories. Because the source identifies preference for branded jewellery as a driver of organised retail, the dominance of gold and fine jewellery means that changes in formal retail primarily affect the industry’s core categories rather than only specialised segments.

Non-gold jewellery is projected to grow at a compound annual growth rate of 18.8% between FY23 and FY28, reaching USD 19 billion in FY28 from USD 8 billion in FY23. A compound annual growth rate is the annualised rate implied by a starting and ending value over a defined period. The supplied material does not provide an exchange rate for these dollar figures, so a rupee conversion is not supported.

Lab-grown diamonds are another cited growth category, with India contributing around 15% of global output and exports rising eightfold from FY21 to FY24. The Indian lab-grown diamond segment is projected to reach USD 1.2 billion by 2033 at growth of nearly 15%. The source does not provide organised-retail shares by category, so it does not establish that gold, non-gold jewellery or lab-grown diamonds individually caused the FY19-to-FY25 market-share change.

Can digital sales increase organised retail share?

Digital sales could increase the reach of organised retailers if e-commerce reaches its projected 18–21% share of jewellery sales by 2029. Online jewellery sales are projected to grow at a compound annual rate of 19–21% through 2028, but these are forecasts rather than reported FY25 outcomes.

The industry data links projected online growth to augmented reality and virtual reality virtual try-ons and artificial-intelligence-driven personalisation. These tools are intended to help customers assess jewellery remotely, but the source does not quantify their separate effect on sales. Their contribution to organised share will depend on consumer adoption and retailers’ ability to execute online sales models.

Women accounted for 43% of online jewellery shoppers in the supplied material. That figure identifies an existing online customer group, not a projection for the whole market. Even if e-commerce achieves an 18–21% sales share by 2029, online sales alone would not determine the final division between organised and unorganised retailers.

What does formalisation mean for the jewellery industry?

Formalisation means a larger share of the jewellery industry is being sold through retailers associated with hallmarking, GST compliance and branded offerings. The move from 22% organised share in FY19 to 36–38% in FY25 is the clearest measure of this change, while the 62–65% unorganised share shows the transition remains incomplete.

The wider jewellery sector contributes about 7% of India’s gross domestic product and roughly 15% of merchandise exports, according to the supplied material. Those figures apply to the entire sector rather than organised retail alone, but they indicate that changes in retail structure can affect a market connected to manufacturing, domestic consumption and exports.

Conclusion

The combined evidence points to a measurable rebalancing in the jewellery industry. Organised retail gained 14–16 percentage points of market share between FY19 and FY25, and organised-player value increased from Rs 1.895 lakh crore in FY23 to Rs 2.25 lakh crore in FY24. Hallmarking, GST compliance and branded-jewellery preference are the stated drivers, while gold’s 80–85% share keeps the shift concentrated in the market’s largest category.

The next measures to watch are whether the unorganised 62–65% share declines further, whether e-commerce reaches 18–21% of jewellery sales by 2029, and whether non-gold jewellery achieves its projected 18.8% FY23-to-FY28 growth rate. These disclosed forecasts and market-share measures will indicate whether the FY25 formalisation trend continues.