Gems & Jewellery: Formalisation and the Rise of Branded Gold
A shift from unorganised to branded, hallmarked jewellery is powering organised players in a large, cultural market.
Market Size
~$85 Bn (India jewellery, FY26E)
Growth
~11% CAGR (FY26–30E)
Read
7 min
Published
Jun 2026
Overview
Jewellery is a large, culturally embedded consumption category in India, historically dominated by unorganised local jewellers. Mandatory hallmarking, GST formalisation and rising trust in branded retail are driving a structural shift toward organised players, who are gaining market share. Gold remains both an adornment and a savings/investment asset for households.
Organised chains benefit from trust, design, transparency and financing (schemes, EMIs), enabling faster same-store and new-store growth. Diamond and studded jewellery, plus lightweight daily-wear designs, are expanding the addressable market and improving margins. Lab-grown diamonds are an emerging disruptor to the natural-diamond value chain.
The business is sensitive to gold-price volatility (which affects demand and inventory), wedding-season cyclicality and regulatory changes. Organised players with strong brands, hedging discipline and design capability are best positioned to consolidate the market.
Illustrative projection from the report's stated market size (~$85 Bn (India jewellery, FY26E)) and growth (~11% CAGR (FY26–30E)).
Key Highlights
- Structural shift from unorganised to branded retail
- Hallmarking and GST formalising the market
- Studded and daily-wear designs lifting margins
- Lab-grown diamonds an emerging disruptor
Growth Drivers
- Formalisation and organised-retail market-share gains
- Rising incomes and wedding/occasion demand
- Gold as cultural adornment and savings asset
- Design innovation and financing-led purchases
Key Players
Investment Outlook
Gems and jewellery offers a formalisation-led growth story with organised players consolidating a vast market, subject to gold-price and cyclicality risks. We favour trusted brands with hedging discipline, design strength and profitable store expansion.
Key Risks
- Gold-price volatility affecting demand and inventory
- Wedding-season and discretionary-demand cyclicality
- Lab-grown diamond disruption to studded margins
The Neoma View
We favour organised jewellers gaining share through trust and design, with disciplined gold hedging; formalisation is the durable tailwind we underwrite here.
Talk to an advisor →All figures are indicative and for information only - not investment advice or a recommendation. Market sizes, growth rates and financial metrics are hedged estimates that vary by source and period. Please consult your advisor before investing.
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