India's luxury market set for 10% growth in 2025: Euromonitor International

India is emerging as a 'significant' player in the global luxury goods market, as per the latest report from Euromonitor International.

As per the report, India (10%) South Africa (15%), and the United Arab Emirates (9%) are among the leading countries in luxury goods market growth. The total market value is projected to be $ 12.1 billion this year. The country is expected to achieve a Compound Annual Growth Rate (CAGR) of 74% over the forecast period, highlighting its growing importance in the luxury ecosystem. A key factor contributing to India's growth is the increasing number of wealthy individuals.

Euromonitor International’s World Market for Luxury Goods 2025 report highlights that the global luxury market – valued at $ 1.5 trillion in 2025 - remains resilient, despite continued macroeconomic and geopolitical disruptions. In 2025, physical luxury stores accounted for 81% of personal luxury goods sales, reflecting the sector’s resilience and the continued importance of in-person engagement, according to the report.

Referencing the latest findings within the Luxury Goods category from Euromonitor International’s Passport knowledge hub, Fflur Roberts, global insight manager for luxury goods at Euromonitor International, said: “Amidst market uncertainty, the industry is undergoing a profound transformation, shifting from product-centric models to experience-driven engagement. Wellness, lifestyle and emotional resonance are emerging as new markers of status, reshaping how brands connect with consumers.”

Premium and luxury cars led value sales, fuelled by urbanisation, affluent consumers, attractive financing, and new electric models. Experiential luxury—especially hotels, travel, fine dining, and exclusive events—was the fastest-growing segment, as younger buyers increasingly sought unique experiences over products, spurred by a surge in tourism and personalised offerings.

Although digital channels are more personalised, many affluent consumers value human touch. According to Euromonitor’s Voice of the Consumer: Retail Survey 2025, 52% of high-income shoppers prefer shopping in-store for fashion – up from 36% in 2023 – highlighting renewed appreciation for tactile experiences that digital platforms cannot fully replicate.

While e-commerce surges, luxury brands are reimagining stores as cultural destinations that inspire, connect and reward loyalty through interactive experiences, according to Euromonitor.

Luxury spending has shifted from personal goods towards experience-led categories, reflecting deeper changes in consumer values. Experimental luxury showed resilience, with luxury travel and hospitality markets growing 8% in 2025 to reach $ 103 billion.

This momentum highlights a broader consumer pivot, where wellness, lifestyle and emotional connection are becoming new status symbols, as per the report. "The third space– environments beyond home and work – has evolved into dynamic hubs and wellness real estate blending lifestyle, retail and social experiences. These spaces offer exclusivity, community and personal fulfilment, prompting brands to expand into new verticals," Euromonitor stated.