Is India's Luggage Industry Set to Grow 5-7% in FY26 with New-Age Firms Capturing 25% of the Market?
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Synopsis
India's luggage industry, valued at ₹18,000 crore, is poised for a 5-7% growth in FY26. With new-age manufacturers expected to capture a significant market share, the industry is transforming, driven by changing consumer preferences and the rise of e-commerce. Discover how these trends are reshaping the market landscape!
Key Takeaways
- India's luggage industry is valued at ₹18,000 crore.
- Projected growth of 5-7% in FY26.
- New-age manufacturers to capture 25% market share.
- Growth driven by e-commerce and changing consumer preferences.
- Operating margins expected to improve significantly this fiscal year.
New Delhi, Sep 1 (NationPress) The Indian luggage industry, valued at ₹18,000 crore, is anticipated to experience a growth of 5-7% in FY26, a noticeable increase from the 3% CAGR observed over the past three years, as indicated by a recent report. This impressive growth is attributed to the rising trends in both leisure and corporate travel, along with a surge in demand for hard luggage, according to Crisil Ratings.
Within this market, emerging manufacturers are set to capture 25% of the market share, achieving an approximate growth of 20%, surpassing larger, established brands that are expected to grow in single digits, the agency reports.
The organized segment, which holds a 45% market share, will be the primary driver of this fiscal growth. New-age manufacturers are expected to expand their share to 25% of the market due to their fast-moving, modern, and stylish designs that appeal to the aspirational consumer class, alongside the expansion of e-commerce.
Analysts further note that cost-effective private label production, managed overheads, and broader distribution through e-commerce platforms will benefit these new-age luggage makers.
“We project that new-age manufacturers will increase their market share to 25% in the organized segment this fiscal, doubling over the past two years, while legacy players continue to enhance their online presence to complement their offline market strategies,” stated Rahul Guha, Senior Director at Crisil Ratings.
This fiscal year, operating margins are expected to improve by 150-200 basis points to 9.5-10.0%, aided by the rationalization of raw material prices and the liquidation of lower-margin inventory held by legacy manufacturers.
Margins for larger players had dropped by more than a third year-on-year to 8% last fiscal due to considerable pricing pressures from newer competitors.
In addition to durability, urban consumers are increasingly prioritizing aesthetics, design, and functionality, while rural consumers are gradually transitioning from traditional soft luggage to more aspirational hard luggage, the report highlighted.
Point of View
I believe the projected growth of India's luggage industry reflects broader economic trends. The shift towards new-age manufacturers showcases an evolving consumer landscape, emphasizing the importance of innovation and adaptability in today's market. By staying attuned to these changes, we can better understand the future prospects of various industries.
NationPress
01/09/2025
Frequently Asked Questions
What is the projected growth rate of India's luggage industry?
The luggage industry in India is projected to grow by 5-7% in FY26.
What market share will new-age manufacturers capture?
New-age manufacturers are expected to capture 25% of the market share.
What factors are driving the growth of the luggage industry?
The growth is driven by rising leisure and corporate travel, and increased demand for hard luggage.
How much will operating margins improve this fiscal year?
Operating margins are expected to improve by 150-200 basis points to 9.5-10.0%.
What is the market share of the organized segment?
The organized segment holds a 45% market share.
