India's wedding industry is estimated to have grown to $130 billion, second only to food and groceries in terms of consumption, thus driving a huge economic boom, according to a recent Jefferies report.
Economic activity across India surges during the wedding season, with the first peak period between October and December, coinciding with the festive period. This year, the wedding season begins in July.
The note underscores that an average Indian spends Rs 12 lakh, or roughly $15,000, on a wedding, which in some cases exceeds the amount spent on 18 years of a child's education. Compared globally, India's wedding spend-to-GDP ratio stands at 5x, significantly higher than several other economies, according to the Jefferies note.
The wedding season
India hosts approximately 80 lakh to one crore weddings annually, making it perhaps the largest such wedding destination worldwide, bigger than China and the US. When it comes to the size of the wedding market, the Indian wedding industry is nearly double that of the US but smaller than China.
The big-ticket events also incur huge spend in India across categories like jewellery, apparel, food and beverages, with strong regional preferences.
The Jefferies report says that nearly 50 percent of all the jewellery bought in India is bridal-themed, with gold as the default choice, contributing over 80 percent to the total demand. Titan and Kalyan Jewellers are among the stocks that have traditionally benefitted from this.
The Big Fat Indian Wedding
Weddings also contribute to over 10 percent of the apparel industry’s revenue. Adding to this, industries like catering, decoration, photographers, planners, invites, travel, gifts, electronics, automobiles and paints benefit from the wedding-related demand surge.
Spending surge
Modern wedding extravaganzas include professional services such as event planners, top-notch entertainment and global cuisine. The discerning clients are also increasingly opting for destination weddings, with beaches and cruises as preferred choices, lasting 2-3 days in an elaborate affair.
Destination drive
The wedding industry has also begun to showcase India's heritage locations as destinations for non-Indian couples. Some of the favourite destinations for weddings in India continue to be Goa, Rajasthan, Himachal Pradesh, and the Andamans, with new locations emerging to cater to the opportunity, the Jefferies report said.
The note cited a survey that showed over 90 percent of marriages in India were arranged by parents, and this has remained consistent across decades and education levels.
Matrimony.com is the marker leader in this business, with nearly 60 percent market share and a market capitalisation of over Rs 1,200 crore.
The Jefferies note added that campaigns such as the government-promoted 'Wed in India' encourage even greater economic activity, and create opportunities for businesses across sectors as well as for local vendors.
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