India’s jewelry market, the second-largest consumer of gold globally, is undergoing significant changes as escalating gold prices influence buyer preferences.
With prices surging 22% in 2024 following a 15% increase in 2023, many consumers are now opting for lightweight and lower-carat gold jewelry to accommodate their budgets.
Lightweight Jewelry in High Demand
Traditional jewelry remains popular in India, especially during significant occasions such as weddings. However, jewellers report a rising preference for lightweight designs that preserve traditional aesthetics while being more cost-effective.
“Most Indian buyers prefer traditional jewelry, but now they want it crafted in lightweight designs to fit their budgets,” said Bachhraj Bamalwa, partner at Nemichand Bamalwa & Sons. To cater to this demand, many jewellers are adjusting their inventory strategies by reducing stock of heavier designs in favour of lighter alternatives.
Advancements in jewelry manufacturing have enabled the creation of intricate, traditional designs using less gold, making them more accessible to consumers while retaining their traditional appeal, said Sachin Jain, CEO of the World Gold Council’s Indian operations.
Growing Popularity of Lower-Carat Jewelry
There has been a noticeable increase in demand for lower-carat gold jewelry, as many buyers focus on affordability and durability. Traditionally, Indian consumers have preferred 22-carat gold for its high purity. However, the price of 18-carat gold, which is nearly 20% cheaper and more robust due to its alloy composition, is attracting a growing number of buyers.
“I preferred the 18-carat jewelry because it was cheaper compared to the 22-carat and is much stronger than it,” said Guddi Devi, a teacher from Bihar, who purchased jewelry for her daughter’s wedding.
Market data supports this shift, with Surendra Mehta, Secretary of the India Bullion and Jewellers Association, reporting that 18-carat jewelry now accounts for over 15% of total sales, compared to 5% to 7% two years ago.
Implications for the Jewelry Industry
Adapting to these shifts enables jewellers to cater to budget-conscious consumers while meeting evolving market demands. The industry is adjusting to these changes through flexible strategies and technological advancements.
