It is no secret that the wedding industry in India is a gargantuan ecosystem, with families spending lakhs and lakhs for every wedding. Many might see it as a prestige event for the family, while for many it is aspirational – whatever the reasons might be, Indian families do not shy away from loosening their pursestrings when it comes to the “big, fat Indian wedding”.
In his latest post, Zerodha co-founder Nikhil Kamath, talking about weddings in India, said that “traditionally uncool industries” appear to hide the biggest opportunities. “With this industry as fragmented as it is, I can’t think of 5 dominant brands in this space that occupy any kind of mindshare. With everyone focused on the IN-industry right now, whatever is the flavor of the season. Traditionally uncool industries might be where massive opportunities are hiding,” he said in a social media post along with staggering statistics collated from CAIT, The Knot Worldwide, Wedding Wishlist, Global Opportunity Analysis and industry forecast.
Some of the staggering stats that Nikhil Kamath included in his post are as follows:
- One in four weddings in the world are from India
- Last year, 2023, saw wedding business of Rs 4.25 lakh crore, up 13% from 2022
- India is the second-largest wedding market in the world, next only to the US
- The wedding industry is also the country’s fourth largest industry, as per estimates
- In the next 15 years, 40 crore weddings are expected in India – more than US’ population
Kamath’s post stated that as per the Wedding Wishlist, the over $50 billion Indian wedding market is expected to grow at a CAGR of 30 per cent, and is soon expected to overtake the US wedding industry to become the largest in the world. Since most of the wedding spendings are in cash, the industry in reality could be bigger than reported.
According to ICMAI data from 2018, Indians spent Rs 90,000 crore on gold and diamond jewellery during weddings, followed by apparel (Rs 50,000 crore) and durable goods (Rs 30,000 crore).
Kamath’s post, quoting the Economic Times and Wedding Wire, stated that Indians spent an average Rs 20 lakh in weddings but have a per capita income of Rs 1.17 lakh, meaning that they spent around 12 years’ of earnings on weddings. Twenty per cent of loans taken by Indians are for weddings only.
Thirty per cent of weddings are fully-funded by parents, while 70 per cent are co-funded by parents and the couple. Four out of five Indian weddings are funded through loans, said Kamath, quoting IndiaLends and WedMeGood.
But there’s an environmental cost to Indian weddings too, apart from personal costs.
As per Wedding Wishlist, 20 per cent of wedding food are trashed, leading to a wastage to the tune of Rs 10,500 crore yearly. Rs 1 lakh crore per year is spent by Indians on wedding gifts.
While the industry reflects “grandeur and huge financial scale”, the cost on average of Rs 20 lakh raises concerns about “extravagant spends and environmental waste”, he said.
