India’s luxury market set for 10% growth in 2025: Euromonitor International
- IBEF
- October 23, 2025
India is rapidly emerging as a key player in the global luxury goods market, with sales projected to reach Rs. 1,06,129 crore (US$ 12.1 billion) in 2025, according to Euromonitor International. The report noted that India, alongside South Africa and the United Arab Emirates (UAE), ranks among the fastest-growing luxury markets, recording 10% growth. The country is expected to achieve a remarkable 74% Compound Annual Growth Rate (CAGR) over the forecast period, driven by the rising number of wealthy individuals, growing urbanisation, and increased appetite for premium goods and experiences. The global luxury market, valued at Rs. 1,31,56,500 crore (US$ 1.5 trillion) in 2025, remains resilient despite macroeconomic challenges, with physical stores accounting for 81% of total personal luxury goods sales, reflecting the ongoing preference for in-person experiences.
Euromonitor highlighted a structural shift in luxury consumption, with experiential segments such as travel, fine dining, and high-end hospitality leading growth. Younger, affluent consumers are prioritising experiences and emotional engagement over product ownership, fuelling the rise of wellness and lifestyle as new status markers. Premium cars, supported by attractive financing and electric variants, are among the top value drivers. Despite digital advancements, 52% of high-income shoppers now prefer in-store fashion purchases, up from 36% in 2023, underscoring renewed appreciation for tactile luxury. As brands transform physical stores into immersive cultural spaces, India’s expanding luxury ecosystem mirrors a global pivot toward experience-led, emotionally resonant consumption.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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