National Roaming: India’s growing wanderlust drives luggage sales

The industry is poised to grow at a CAGR of 15-16 percent in the next five years, as per analyst estimates.

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26 Aug, 2025 12:21

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The Indian luggage sector, comprising well established brands such as VIP and Safari, is expected to see strong growth in the coming quarters, driven by the travel aspirations of young Indians. There has also been a shift in consumer behaviour, as younger people are opting to buy luggage that not only provides quality and durability, but also looks fashionable

“Post Covid, the travel behaviour  has changed, and now people are travelling more than four times a year,” said Sobhit Shinghal, Analyst at Anand Rathi Institutional Equities. “There are also new  travel destinations emerging, such as spiritual and religious places,” he added.

The recent uptick in interest coincides with the promising outlook of India's outbound tourism sector, expected to grow steadily at a compound annual rate (CAGR) of 11.4 percent from 2023 to 2032, reaching a total of $44.8 billion, per a report titled 'Outbound Tourism in India,' by FICCI and advisory firm Nangia Andersen. The outbound travel market was valued at $15.16 billion in 2022.

Earlier, for luggage, durability was the main concern, with bags expected to last eight to 10 years. However, with the percentage of Gen Z and millennials in India being higher than in any other country globally, these travellers are now also focusing on the look of the product,  and not just durability.

“Typically, we've seen the male head of the household handling travel needs. However, now, with both men and women working and travelling independently, the overall demand in the luggage sector has considerably increased and would continue to do so. Women are increasingly independent, undertaking solo and company trips” said Yash Dalal, Research Analyst at Sushil Financial Services.

Additionally, the focus has shifted from utility to fashion in the luggage sector, which augurs well for the organised businesses. " This trend is not only visible in metro cities, but also noticeable among the younger generation from Tier 2 and Tier 3 cities, where there is a greater emphasis on aesthetics and fashion rather than just durability when selecting luggage.” he added.

In its Q3 earnings call, the VIP Industries management said that, “Travel now includes what you bring along, focussing more on fashion than just convenience.”

This means design, colour, and innovation matter a lot more in what people choose to carry, the management added.

Listed luggage maker Safari Industries reported net sales of Rs 387.93 crore, and a sharp growth of 28 percent in the last quarter. VIP Industries reported a net sales of Rs 549 crore, growing 4 percent in Q3.

Analysts said that the luggage industry in India is worth Rs 10,000 crore, of which organised players comprise around 56 percent.

The industry is poised to grow at a CAGR of 15-16 percent in the next five years, per analyst estimates.

The luggage sector in India has seen investments recently both in the listed and the unlisted space, signifying investor confidence in the industry. Mokobara, a direct-to-consumer (D2C) luggage company, has secured approximately $12 million (Rs 100 crore) in its series B funding round, with Peak XV Partners (formerly Sequoia Capital India) as the lead investor. The startup's valuation, post-funding, is estimated to be around $80 million.

Similarly, Lighthouse Funds, a mid-market consumer and healthcare-focused fund, has invested Rs 229 crore in luggage manufacturer Safari Industries through its recent fund Lighthouse India Fund IV AIF. Sachin Bhartiya, Co-Founder and Partner at Lighthouse Funds, highlighted the Indian luggage market's growth, fuelled by increased leisure and wedding travel, supported by advancements in transport infrastructure over the past decade.

Analysts noted that the luggage space is experiencing a shift towards premiumisation.

VIP Industries, in their Q3 earnings call, said the company has seen  double-digit growth because of the launch of premium products.

“We are growing in double digits now in January (2024) and for the quarter, it should be upwards of 15 percent,” the management said in their post earnings call. Analysts noted that Safari mainly caters to the mass segment and would continue to do so in the coming quarters.

Smaller players are entering the market and transitioning towards organised branding to stay relevant. “While this increases competition, market share and effective marketing remain crucial. Currently, VIP, Safari, and Samsonite dominate the domestic industry, and face minimal threats,” said Yash Dalal, Research Analyst at Sushil Financial Services.