India's luxury market poised for 10% growth in 2025

This surge is fueled by an affluent demographic, particularly those aged 60 and above, who are driving demand for wellness and lifestyle-led luxury experiences. As brands move beyond transactional spaces to offer curated lifestyle engagements, the role of premium packaging in enhancing the consumer experience is becoming increasingly vital.

India's luxury market is projected to reach USD 12.1-billion by 2025, experiencing a significant 10% growth, according to a report by Euromonitor International. This surge is fueled by an increasingly affluent 60+ demographic, a growing preference for wellness and lifestyle-led luxury, and the strategic expansion of eCommerce, which balances technological advancements with the enduring value of human connection.

The World Market for Luxury Goods 2025 report highlights the sector's resilience, with physical luxury stores still accounting for a substantial 81% of personal luxury goods sales in 2025. This underscores the continued importance of in-person engagement and curated lifestyle experiences over purely transactional interactions.

Fflur Roberts, global insight manager for luxury goods at Euromonitor International, noted, "Amidst market uncertainty, the industry is undergoing a profound transformation, shifting from product-centric models to experience-driven engagement. Wellness, lifestyle and emotional resonance are emerging as new markers of status, reshaping how brands connect with consumers."

India stands out as a key player in this global luxury landscape, ranking among the top five countries for market growth, alongside South Africa (15%) and the United Arab Emirates (9%). The country is expected to achieve a compound annual growth rate (CAGR) of 74% over the forecast period, reflecting its burgeoning importance in the luxury ecosystem, largely due to a rising number of wealthy individuals.

Premium and luxury cars are leading value sales, propelled by urbanisation, attractive financing options, and the introduction of new electric models. Experiential luxury, encompassing hotels, travel, fine dining, and exclusive events, is the fastest-growing segment, as younger consumers increasingly prioritise unique experiences over material possessions.

The retail experience is also evolving, with physical luxury stores transforming into expressions of identity through exclusivity and hospitality. These environments offer concierge-level service and engaging storytelling, mirroring high-end hospitality. Despite the rise of digital channels, a significant portion of high-income shoppers, 52%, prefer in-store shopping for fashion, a notable increase from 36% in 2023, indicating a renewed appreciation for tactile experiences.

Luxury spending is shifting towards experience-led categories, with luxury travel and hospitality markets growing 8% in 2025 to reach USD 103 billion. This reflects a broader consumer pivot towards wellness, lifestyle, and emotional connection as new status symbols. The "third space"—environments beyond home and work—is evolving into dynamic hubs that blend lifestyle, retail, and social experiences, offering exclusivity, community, and personal fulfilment.

The 60+ age group is a rapidly growing demographic in terms of affluence and influence. Driven by increased life expectancy and improved healthcare, this cohort is redefining luxury, seeking indulgence and sophistication alongside empowerment and simplicity. Their spending favours luxury offerings that enhance quality of life, including wellness travel, spa-led hospitality, age-inclusive luxury skincare, home innovations, real estate, and luxury retirement villages supporting "ageing in place."

Roberts concluded, "For brands, this is a prime moment to rethink premium experiences through the lens of longevity and conscious indulgence, designing services that cater to a generation with time, resources and a growing appetite for elevated living. The luxury sector’s growth will depend on its ability to adapt to these evolving consumer opportunities."

The recent PrintWeek Awards 2025, hosted by Haymarket Media India, underscored the critical contributions of the Indian print and packaging industry to this evolving luxury landscape. Jury members at the PrintWeek Awards highlighted significant developments in conversion techniques, premiumisation, and the art of storytelling through packaging. 

Experts noted how packaging is transforming into a "silent salesman," with brands focusing on delivering exceptional consumer experiences through creative designs, innovative production, and a strong "green quotient". The prioritisation of the unboxing experience and the adoption of specialty printing by homegrown brands were also key trends observed.