Festivals like Diwali and Dusshera are usually followed by the wedding season with many Indians spending on gifts, decor, jewellery, fuelling massive demand & consumption across sectors. Indian wedding season peaks twice a year—from November to mid-December and mid-January to July. These periods also align with high economic activity, particularly during the first season, which overlaps with major festivals.

In today’s video, we will look at the wedding industry and see why this evergreen industry is expected to do well in the coming months.

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Market Analysis of Indian Wedding Industry

The Indian wedding industry is booming. It has bounced back stronger, growing at an impressive 7-8% annually. According to WedMeGood, the industry neared a remarkable $75 billion during the 2023-24 wedding season—a strong recovery since the pandemic. A survey of nearly 3,000 couples and 500 vendors showed a 15-22% year-over-year increase in business from 2022 to 2023.

There are over 1 crore weddings annually in India - 4th largest industry in the country, currently valued at a staggering $130 billion. It creates employment for about 10 million people, from wedding planners to photographers, caterers, makeup artists, artisans, and entertainers.

The impact extends beyond weddings, boosting allied sectors such as

• Hospitality sector with hotel bookings for weddings reaching around $603 million annually.

• Tourism sector draw more travelers, benefiting local economies

• Retail sector with nearly $1.2 billion spent annually on wedding clothing and $7.2 billion on gold and jewelry.

• Technology and logistics sectors

3 Growth Drivers Of The Indian Wedding Industry

First, . With increasing household income, families are ready to spend more on lavish weddings that reflect their social status, turning these events into grand experiences.

Celebrity culture also plays a big role. Bollywood and high-profile celebrity weddings set trends in fashion, decor, and overall wedding style. Couples now look to these weddings as inspiration, creating demand for luxury services that mirror the glamour of celebrity life.

Lastly, government initiatives like ‘Wed in India’ are promoting India as a top destination for weddings. With rising disposable income and social media influence, destination weddings are more accessible and attractive than ever.

Let’s look at each of these in more depth.

Changing Wedding Preferences Amid Rising Disposable Incomes

The wedding industry saw significant growth in 2023 as weddings became larger and more extravagant post the pandemic blues. Average guest size grew by nearly 15%, from 270 guests in 2022 to 310 in 2023. Celebrations also expanded, with couples now hosting an average of 4.2 functions, up from 3.2.

Expenses for weddings have historically been borne by the Bride’s family - we are seeing a changing pattern here largely in urban areas. Around 59% of wedding costs are split equally, but 32% still fall solely on the bride’s family.

Millennial couples are more financially involved - in urban areas. 70% of brides and grooms now contribute financially, spending on meaningful experiences and luxury services like premium outfits, professional photography, honeymoons, and custom engagement rings.

In terms of consumption, 54% of weddings remain alcohol-free, while 29% offer it selectively and 17% in all functions.

A trend in 2023 was the rise in artificial jewelry, with 36% of brides opting for it and 16% choosing rental options. This trend points to changing attitudes on ownership, with practicality often taking precedence over tradition.

The recent reduction in gold import duty—from 15% to 6%—is expected to further increase gold purchases this season, as gold remains both an investment and cultural product.

Luxury Spending Rises Amid Celebrity Culture

Luxury spending in India has grown beyond traditional limits. Where gold and luxury items once signaled exclusivity, today they’re more accessible, fueled by rising incomes and aspirations. India sees a large number of weddings across varied spending tiers. A significant 27 lakh weddings fall in the ₹10-25 lakh range, reflecting the popularity of mid-range wedding budgets. Smaller budgets like ₹3 lakh and ₹6 lakh account for 10 lakh weddings each, while high-end weddings costing ₹1 crore or more make up 50,000 weddings.

India’s luxury market is on track to triple, potentially reaching $85 to $90 billion by 2030. The rapid growth is driven by a growing middle class, expansion into Tier 2 and Tier 3 cities, and rising demand for entry-level luxury products.

India’s ultra-premium shopping malls are booming. Last year, JIO World Plaza opened, bringing luxury brands like Louis Vuitton, Gucci, and Cartier to the heart of Mumbai. Luxury homes in Delhi, Mumbai, and Hyderabad have seen record sales, while luxury car brands like Mercedes-Benz, Audi, and BMW reported strong growth in India’s market. Credit card spending, too, has surged, reflecting a growing appetite for premium products and experiences.

Watch our last video to understand more about luxury consumption.

Destination Wedding Heating Up

India is a prime location for destination weddings. From the majestic forts of Rajasthan to Kerala’s peaceful backwaters, Goa’s beaches, and the lush hills of Uttarakhand, couples are choosing unique, picturesque venues. With rising disposable income and social media influence, destination weddings are more accessible and attractive than ever.

Inspired by “Make in India,” Prime Minister Modi introduced “Wed in India,” urging wealthy industrialists to host destination weddings within India, particularly in Uttarakhand. This program aims to retain $12.1 billion within the country by promoting local wedding tourism.

The Ministry of Tourism’s wedding tourism campaign positions India as a top global wedding destination, moving beyond the "royal" wedding image to themes like Beach, Nature, Royal, and Himalayan weddings. This campaign showcases about 25 key destinations, offering couples a chance to create their dream weddings amidst India’s natural beauty.

Investment Opportunities In Indian Wedding Industry

The wedding sector is valued at ₹10.7 lakh crore and second to only food and grocery. Other significant sectors related to wedding include apparel & accessories, home decor, jewelry, consumer durables and health & beauty care.

IHCL is one such company that is a leader in luxury hospitality with strong financials and an impressive 32.3% operating profit margin. Although priced at a high P/E, it has a diversified portfolio of services and 62.6% sales growth over 3 years.

EIH is another hospitality stock that manages luxury hotel brands Oberoi and Trident. It saw a 72% 3 -year sales growth and boasts a strong financial position. It also has a low debt-to-equity ratio of just 0.05.

But beware of the cyclical nature of the hospitality industry.

Another iconic brand is Titan, which provides watches, jewelry, and eyewear - currently trading at a premium. It has a strong brand presence and steady sales growth of 33.1% over 3 years.

Kalyan Jewellers is one of India’s largest jewelry retailers - with a 29.3% 3 year growth rate. Despite high valuation multiples, Kalyan’s brand and retail network are strong.

As one of India’s leading textile companies, Arvind maintains a steady 15.1% sales growth. Priced reasonably, it has a diversified textile portfolio.

Known for its men’s wedding wear, Vedant Fashions has achieved a 34.3% three-year sales growth. While trading at a high P/E, the brand’s market position and efficient operations offer growth potential.

Future of the Indian Wedding Industry

India is expected to have around 40 crore weddings taking place over the next 15 years. With 600 million people yet to marry, and 11 to 13 million weddings celebrated annually, the scale of this market is immense.

This growth is fueled by rising disposable incomes, a booming luxury market, and demographic trends, with millions reaching marriageable age in the next five years.

With international destinations vying for high-net-worth Indian weddings, the domestic tourism industry is recognizing weddings as a key attraction. Rising costs for overseas ceremonies are also encouraging more couples to choose Indian destinations.

In 2024, the Indian wedding sector is set to grow at a rate of 15-20% CAGR, reaching ₹5 lakh crore or around $67 billion. This growth is driven by demand for luxury services, digitalization, and sustainability.

The future of the Indian wedding industry is bright, with rising demand for luxury, digitalization, and sustainability.

So what do you think about the Indian Wedding Industry? Let us know in the comments below.

Be sure to check out our other videos! You can also read find detailed analysis, blogs & reports on our website for more in depth information - links available in the description.

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