Band Baaja December! Booming Indian Wedding Market & Thriving Economy

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Today, on the #WhatsHappeningThursday Financial Desk, we have

• How India is powering the economy with weddings?
• An invite to investors: Why invest now?
• The future of the Indian wedding market
• Conclusion

How India is powering the economy with weddings?

It’s the season here in India. No, we are not talking about Christmas but the booming Shaadi season that’s boosting the Indian economy. Becoming the second-largest industry after food and grocery, the Indian wedding industry is valued at $130 billion. It is considered one of the most lucrative markets, with an economic impact twice the size of the US market but less than that of China.?

During November and December, deemed as ‘the wedding season,’ India will witness an estimated 48 lakh weddings, driving multiple sectors such as jewellery, food and clothing to an epoch of success. Of these 48 lakh weddings, 4.5 lakh will occur in Delhi alone, contributing Rs 1.5 lakh crore business and a boost of Rs 5.9 lakh crore towards the Indian economy as per CAIT (Confederation of All India Traders). Hosting approximately 80 lakh to 1 crore weddings annually, India is already setting itself as a global wedding destination.?

Let’s break down the estimated expenses of a ‘big-fat Indian wedding.’ According to reports, the average expenditure on a wedding is around $15,000, or Rs 12.5 lakh. Ironically, an Indian couple spends twice as much on weddings than education, a stark contrast to the US, where more money goes to education.?

The average expenditure on a wedding in India is five times the country’s per capita GDP of $2,900 (approximately ?2.4 lakh). It exceeds three times the average annual household income, around ?4 lakh. With many pre-wedding events being added to the list daily, including lavish catering, premium accommodations, entertainment, and clothing, Indian weddings have become a bonanza of glamour. It does not apply to luxury weddings. That star-studded gala featuring Michelin-star chefs and professional artists spend an average of Rs 20 million to Rs 30 million (approximately US$ 200,000 to US$ 400,000) on weddings.?

According to the latest data, 50% of all jewellery purchased in India is bridal-themed. Gold remains the top preference, with industry leaders like Kalyan Jewellers dominating the market. Weddings also contribute over 10% of the apparel industry’s revenue, followed by a surge in sectors like photography, travel, planners, automobiles, electronics, etc. Not to mention the matrimony sector itself: matrimony.com is the key player in the market, with nearly 60%? market share and a market capitalisation of over Rs 1,200 crore. Decoration costs make up 5-10% of the total wedding budget. A survey of nearly 3,000 couples and 500 vendors showed a 15-22% year-over-year increase in business from 2022 to 2023.

According to a 2023-24 report by WedMeGood, there has been an 18% increase in destination weddings in 2022, with places like Kerala, Udaipur, and Jaipur being the chartbusters. Due to this increased popularity of destination weddings, there has also been an increased demand for hotels and travel. Leading hotel and airline chains like IHCL, EIH, Chalet Hotels, Indigo, and SpiceJet have benefited from this change.?

An invite to investors: Why invest now?

The Indian wedding season benefits not just the big names in hospitality, apparel and jewellery but also you as an investor. While the companies leverage the opportunity, you can make significant returns by investing in the right stock. According to media reports, the wedding-related sector has shown impressive growth over the past week, with Kalyan Jewellers gaining 7.2%, Vedant Fashions (Manyavar) rising by 4.81%, and Raymonds going down by 6.77%.?

However, it is essential to do a fundamental analysis of the stock you are planning to invest in. Even though these stocks are bullish, that may change over time. So remember to diversify your investments to minimise losses.?

The future of the Indian wedding market

Ten million weddings take place every year in India. It is expected to grow exponentially in the next 10 years. According to a recent survey, by 2028, the total size of the events industry is expected to surpass USD 1,550 billion (1.25 lakh crore). India's rising prominence as a global wedding destination is expected to attract 10 to 20% of the worldwide wedding business. A prime example of this would be the Wed in India campaign launched by the Tourism minister. The campaign is designed to position India as a premier global wedding destination, broadening its image beyond lavish, regal ceremonies. It highlights themes such as Beach, Nature, Royal, and Himalayan weddings, encouraging couples to tailor their dream celebrations within India's rich cultural and scenic landscapes. This initiative aims to attract a broader spectrum of tourists and strategically elevate India’s standing as a sought-after wedding tourism destination.

“In India, the industry could expand 3.7 times, fuelled by government initiatives like the Wed in India campaign. This growth translates into a projected increase in event management opportunities, rising from INR 1 lakh crores to INR 3.5-4 lakh crores in the next five years,” says an industry expert.?

Conclusion

India's wedding boom shows no signs of slowing down, presenting a promising opportunity for investors to earn significant benefits with smart market choices. With an effective framework and strong collaboration between the government and the private sector, India has the potential to emerge as a global leader in the wedding economy.

Thank you for reading. Don’t forget to share your thoughts in the comments.?

(Alice Blue does not endorse any of the stocks mentioned above. The information provided is for educational purposes only.)