Indian luggage industry to touch US$ 3.02 billion by 2028, says Motilal Oswal Report
- IBEF
- October 30, 2025
India’s luggage industry is projected to reach Rs. 26,700 crore (US$ 3.02 billion) by 2028, growing at a compound annual growth rate (CAGR) of 12% between 2023 and 2028, according to a report by Motilal Oswal. After a sharp contraction to Rs. 6,000 crore (US$ 678.81 million) in 2020 due to the COVID-19 pandemic, the sector witnessed a strong rebound, growing at a 37% CAGR between 2020 and 2023. The recovery was supported by increasing domestic and international travel, higher disposable incomes, and a growing shift towards organized and branded products. Branded players, which held a 52% market share in 2023, are expected to outpace the overall industry growth driven by urbanization, premiumization, and product innovation.
The report pegged the size of the Indian luggage market at Rs. 17,000 crore (US$ 1.92 billion) in 2024, with rising demand from both urban and semi-urban regions. The industry is witnessing a transformation as consumers increasingly view luggage as a lifestyle accessory rather than a utility item. Growing aspirations, shorter product replacement cycles, and exposure to global trends are reshaping the segment, particularly among Millennials and Gen Z. The premium category remains the fastest-growing segment, fuelled by technological innovations such as smart luggage with GPS tracking, USB charging ports, and mobile connectivity. The continued expansion of e-commerce and modern retail formats is expected to further boost organised players and sustain the industry’s premiumization momentum.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
