Indian Wedding Industry Is Bound To Consolidate The Present Healthy Growth

The rising disposable income is influencing the desire of the average Indian to have a lavish wedding. As more people invest in making their weddings memorable events, India is becoming a favoured destination not just for domestic but also international weddings

India's wedding industry is expected to see a surge in economic activity this year with a number of factors contributing to the growth:

The Confederation of All India Traders (CAIT) projects that 4.8 million weddings will take place in India between November 12 and December, generating an estimated Rs. 5.9 trillion in business. This is a significant increase from the previous year, when 3.5 million weddings took place and generated Rs. 4.25 trillion in business.

There are 18 auspicious wedding dates in 2024, compared to 11 in 2023.

According to WedMeGood, 21 per cent of couples surveyed in 2023-24 had destination weddings, up from 18 per cent in 2022.

Brides are increasingly open to buying jewelry from international brands, such as Cartier, Bulgari, and Tiffany's.

Banks like IDFC First Bank, State Bank of India, HDFC, ICICI, Kotak, and Axis Bank offer financial services related to weddings. The wedding industry also indirectly benefits other industries, such as two-wheelers, four-wheelers, consumer electronics, paints, travel bags, and footwear.

India’s retail sector is bracing for an extraordinary surge in economic activity with the upcoming wedding season, starting from November 12. A CAIT study projects an astounding Rs. 5.9 trillion in business during this period, fuelled by an estimated 4.8 million weddings across the country.

This marks a significant jump from the previous year's Rs 4.25 trillion, driven by 3.5 million weddings. With a notable increase in auspicious wedding dates, the potential for economic growth is unprecedented. Delhi alone is expected to see around 450,000 weddings, contributing Rs. 1.5 trillion to the overall business.

To put things in their perspective, data released by CAIT mentions about a massive expenditure of Rs. 5.9 lakh crore in the upcoming wedding season, which is likely to see almost 48 lakh marriages.

If achieved, it'll be a huge bump up of over Rs. 1.5 lakh crore compared to last year's Rs. 4.3 lakh crore.

When we think of weddings, we usually think of hotels, food & beverages, jewellery, and apparel. Of course, it's much bigger than that. According to CAIT national president BC Bhartia the wedding expenditure will look like: 50,000 weddings with an expenditure of Rs. one crore or more per wedding; 50,000 weddings with an expenditure of Rs. 50 lakh per wedding; seven lakh weddings with an expenditure of Rs. 25 lakh per wedding; 10 lakh weddings with an expenditure of Rs. 15 lakh per wedding; 10 lakh weddings with an expenditure of Rs. 10 lakh per wedding; 10 lakh weddings with an expenditure of Rs. six lakh per wedding and 10 lakh weddings with an expenditure of Rs. three lakh per wedding.

CAIT national secretary Sumit Aggarwal says that these estimates are conservative given the massive scale of economic activities expected during the season. Besides the auspicious dates, a significant number of weddings also take place on other dates.

Khandelwal said that wedding expenses are typically divided between goods and services. The major goods sectors that will see most expenditure are clothing and apparel (10 per cent) and jewellery (15 per cent). These are followed by electronics and consumer durables (five per cent) and confectionery (five per cent), groceries and vegetables (five per cent) and gift items (four per cent). India’s hospitality sector is witnessing significant growth, strengthened by the country’s rich cultural diversity and its appeal to a global audience. By 2024, the hospitality industry is projected to be valued at $247.31 billion, with expectations to nearly double to $475.37 billion by 2029, flourishing at a robust compound annual growth rate (CAGR) of 13.96 per cent. A crucial element within this booming sector is the banquet business, particularly energised by resurgence in wedding bookings. In 2023, this segment alone saw an anticipated growth rate of 20 per cent that was to the pre-pandemic levels.

This revival is inspiring the hotels to not only expand their banquet services but also modernise them to cater to the rising trend of personalized and lavish weddings.

The rising disposable income is influencing the desire of the average Indian to have a lavish wedding. As more people invest in making their weddings memorable events, India is becoming a favoured destination not just for domestic but also international weddings.

This surge is redefining the ‘Big Fat Indian Wedding,’ making it accessible to average Indians beyond the elite.

The wedding industry itself is poised to reach a mindboggling $100 billion by 2025, setting the stage for an exponential growth in the banquet sector.