Even as gold prices scale record highs, India’s jewellery market is showing a clear split in consumer behaviour, one that is reinforcing, rather than weakening, the premiumisation trend.
Industry leaders say rising prices have done little to dent demand for high-value, design-led pieces. Instead, they have sharpened consumer segmentation. “Premiumisation and formalisation are only gaining steam,” said Arun Narayan, CEO of Tanishq, pointing to a growing cohort of affluent buyers who remain largely unfazed by price spikes. This segment, he noted, is increasingly driven by design discovery and global exposure, seeking pieces that stand out rather than simply store value.
At the same time, a more price-sensitive middle class is becoming measured in its purchases—opting for lighter designs and maximising value. This divergence is shaping what many describe as a K-shaped recovery in the sector.
Joyalukkas has seen a steady rise in average ticket sizes, alongside higher contribution from studded and premium collections. “The momentum is not purely price-led,” said Chairman Joy Alukkas, adding that there is clear volume growth in premium segments, driven by customers prioritising design, quality and brand experience.
While weddings remain a key demand driver, the premium push is no longer occasion-bound. Rising self-purchases and gifting trends are expanding the category’s appeal, signalling a broader move towards lifestyle-led consumption.
For jewellers, this evolving demand mix is critical. Even as entry-level growth remains tepid due to elevated gold prices, the resilience of premium buyers, combined with a shift towards branded, design-centric offerings, continues to drive overall value growth.
The takeaway is clear: in India’s gold market, higher prices may be tempering mass demand, but they are simultaneously accelerating a structural shift towards premiumisation.