Organised retailers held only 36.7% of India’s gold jewellery market

Organised retailers held 36.7% of India’s retail gold jewellery market in CY25, while unorganised sellers held 63.3%. The split shows that branded chains had gained a substantial base but remained smaller than decentralised trade in a market valued at Rs 5,73,160 crore in CY25.

What share of India’s gold jewellery market did organised retailers hold?

Organised retailers held 36.7% of India’s retail gold jewellery market in CY25, against 63.3% for the unorganised segment. The 26.6-percentage-point gap means the organised segment remained smaller, even as branded chains expanded store networks, franchise formats and digital customer channels. The market remains fragmented, with thousands of regional and local jewellers serving customers.

The unorganised segment’s 63.3% share is supported by a craftsmanship-led production model. Small retailers and manufacturers provide raw gold to karigars, or skilled artisans, who make finished jewellery for labour charges. This structure permits customisation, intricate work and design flexibility, but it can create variability in quality and restrict scale. Organised retailers’ 36.7% share can rise only if purity assurance, billing, design and buyback policies continue to shift purchases from local jewellers.

How large is the retail gold jewellery market behind this 36.7% share?

India’s retail gold jewellery market was worth Rs 5,73,160 crore in CY25, up from Rs 3,74,820 crore in CY20, representing an 8.9% compound annual growth rate, or CAGR. CAGR measures the smoothed annual rate of change across a period rather than a single year’s movement. The market declined slightly from Rs 3,74,820 crore in CY20 to Rs 3,73,350 crore in CY21, then rose to Rs 5,64,700 crore in CY22 before falling to Rs 4,86,560 crore in CY23.

The CY25-to-CY30P projection is for a 10.8% CAGR, with CY30P denoting a projection rather than a reported market size. The forecast is based on rising disposable incomes, formalisation, branded and hallmarked jewellery, and buyback and exchange programmes. Value growth does not necessarily mean equivalent volume growth: elevated gold prices softened volume growth while lifting revenue through higher realisations.

Which jewellery categories shape demand for organised retailers?

Bridal wear is the largest retail gold jewellery category, accounting for 54% to 57% of the CY25 market, compared with 33% to 35% for daily wear and 9% to 11% for occasional wear. India hosts more than one crore weddings annually, providing a large demand base for wedding jewellery. Bridal wear is projected to remain 55% to 58% of the market in CY30P, indicating that wedding-led demand is expected to retain its central role.

Bangles and bracelets were the largest product type at 33% to 35% in CY25, followed by chains at 25% to 26% and neckwear at 18% to 19%. By CY30P, bangles and bracelets are projected at 31% to 33%, while chains are projected at 26% to 28% and neckwear at 19% to 20%. This comparison indicates a projected shift toward chains and neckwear, alongside demand for lighter and more versatile products among working professionals and younger buyers.

What is moving purchases from local jewellers to organised retailers?

Mandatory hallmarking, introduced in January 2021, and the Goods and Services Tax, or GST, are policy mechanisms supporting formalisation. Hallmarking focuses attention on certified gold and authenticity, while GST replaced differing state tax structures with a single system. Gold sales attract 3% GST and making charges attract an additional 5% GST. Organised retailers are better equipped to meet regulatory and documentation requirements than many informal competitors.

Consumer preferences also support the organised model through assured purity, transparent billing, modern designs, buyback policies, loyalty programmes and omni-channel retailing. Omni-channel retailing combines physical-store and digital customer interactions, including online discovery, virtual try-ons, consultations and customisation. These features matter as chains enter Tier II and Tier III cities through company-owned and franchise stores, but local jewellers retain advantages in customer relationships, rural presence, product variety, flexible pricing and instalment-based payment arrangements.

What could limit organised retailers’ future market-share gains?

Gold prices, import rules and inventory funding needs can limit the pace at which organised retailers gain share. India’s gold imports rose 30.6% year on year in value terms in FY26 to Rs 6,39,520 crore from Rs 4,89,750 crore in FY25, while import volume declined 4.8%. That contrast shows how higher prices can increase the rupee value of inventory even when physical volumes fall, raising working-capital requirements for retailers carrying gold stock.

The policy outlook is also unsettled. Customs duty on gold and silver was cut from 15% to 6% in the July 2024 Union Budget, then increased to 15% in May 2026 through a 10% Basic Customs Duty, or BCD, and a 5% Agriculture Infrastructure and Development Cess, or AIDC. Higher duty is expected to increase jewellery prices and manufacturers’ and retailers’ working-capital needs, although it may support recycling. Continued share gains therefore depend on brands maintaining customer trust and store expansion while managing price volatility, compliance costs and competition from local sellers.

Conclusion

Organised retailers’ 36.7% CY25 share identifies both their progress and the remaining scale of India’s informal jewellery trade. The market’s Rs 5,73,160 crore size, projected 10.8% CY25-CY30P CAGR and continued consumer interest in certified and branded products create scope for formalisation, but the 63.3% unorganised share shows that local retail remains the larger channel.

The next measure to watch is whether expansion into Tier II and Tier III cities, including company-owned and franchise formats, converts into a greater share of incremental market growth. The outcome will also depend on gold-price movements, the May 2026 15% duty structure, hallmarking compliance and whether local jewellers maintain their appeal through customisation, rural reach and flexible payment practices.