Experiential luxury, cars and beauty driving Indian luxury market

March 13, 2026

Experiential luxury is one of the fastest-growing luxury categories in India. Seen here: a wildlife safari in a tiger sanctuary in Tadoba National park in India's Maharashtra state. Image credit: Shutterstock, DebashisK

By Sheetal Jain

The Indian luxury market is entering a decisive growth phase.

By the end of 2026, the country will likely not just be a high-potential market, it will be one of the most structurally important luxury growth engines globally.

With strong macro fundamentals, rapid wealth creation and a young, aspirational consumer base, India is now firmly positioned among the top three fastest-growing luxury markets in the world.

According to Euromonitor International, India’s luxury goods market is projected to grow at 10 percent annually, reaching $12.1 billion by 2025 and expected to cross $14-15 billion by 2026.

This growth significantly outpaces mature markets such as Europe (2-3 percent) and even China (4-5 percent), making India a rare high-growth, high-scale opportunity for global luxury brands.

Wealth creation: The core growth engine
Luxury growth in India is fundamentally driven by wealth expansion.

India added 39,000 new dollar millionaires in 2024, taking the total to around 917,000 millionaires.

By 2027, India is projected to cross 1.2 million millionaires.

India now accounts for nearly 30 percent of new global middle-class consumers – the highest share worldwide.

By 2030, an addition of 110 million middle-income households is predicted, according to a recent Deloitte report.

‘HENRY’ (high-income-not-rich-yet) and ‘DINKs’ (dual-income-no-kids) are a rapidly growing force in India’s luxury market. This segment of working professionals with rising disposable incomes is pushing demand for experiential, lifestyle-led, digitally influenced and authentic luxury.

Urbanization and tier-2 expansion
India’s luxury consumption is no longer concentrated solely in metropolitan hubs such as Delhi and Mumbai.

Recent findings from a Tata Cliq Luxury report reveal that more than 50 percent of luxury sales now originate from tier 2 and tier 3 cities, including Surat, Raipur, Lucknow and Guwahati. This shift highlights a significant transformation in the country’s consumption landscape.

To capitalize on this growing opportunity, international luxury brands are increasingly embracing digital platforms to penetrate emerging markets.

Brands such as Bulgari, for instance, are leveraging online channels to connect with affluent consumers beyond traditional metros.

The expansion of luxury demand is not limited to fashion alone.

Non-metro regions are also contributing substantially to luxury car and jewelry sales. This trend is also evident in the automobile sector, where approximately 25 percent of Lamborghini’s super-luxury car sales in India now come from cities outside the major metropolitan areas.

Urbanization is acting as a catalyst for economic and social transformation, creating a large, aspirational consumer base that is willing to splurge on luxury goods and experiences.

Digital, social and omnichannel luxury
India is redefining luxury distribution.

The country has 900 million-plus Internet users and 450 million-plus social media users.

More than 60 percent of luxury discovery now happens online.

Luxury brands in India are investing heavily in omnichannel strategies, private previews, WhatsApp commerce and influencer-led storytelling to localize global brand narratives.

Recently, the entry of the iconic French department store chain Galeries Lafayette into India housing more than 250 global luxury and designer brands within a 90,000-square-foot experiential retail space in Mumbai stands as a strong testament to the rapid evolution and growing maturity of India’s luxury retail landscape.

Key high-growth luxury segments

Luxury cars: Luxury automobiles remain the largest and fastest-scaling luxury category in India.

According to Euromonitor International, luxury cars segment is expected to close 2025 with $4.82 billion in sales marking 18 percent year-over-year growth.

This sector is further projected to expand at a 17.2 percent CAGR between 2026 and 2030.

German brands dominate, but ultra-luxury marques such as Bentley, Rolls-Royce and Lamborghini are witnessing 20–25 percent annual growth, driven by ultra-HNWIs and business families.

Experiential luxury: Travel, wellness, bespoke dining, private aviation and curated experiences are emerging as the most disruptive growth engine in India’s luxury market.

According to Euromonitor International, the experiential luxury category which includes fine dining, luxury holidays, high-end events and lifestyle experiences is projected to reach $2.69 billion in 2025, growing at a 21.4 percent annual rate.

Over the next five years (2026-2030), this segment is expected to post a transformational 77.8 percent CAGR.

Indian consumers are increasingly prioritizing “memories over materialism”, spending more on private villas, destination weddings and wellness retreats.

Luxury beauty and personal care: Luxury beauty is rapidly emerging as a gateway category for first-time luxury buyers in India, driven by affordability relative to other luxury segments, high brand visibility and strong digital distribution.

India’s luxury beauty and personal care market is expected to double in size from approximately $800 million in 2023 to $1.6 billion by 2028, representing a 15–18 percent CAGR – nearly twice the global luxury beauty growth average.

Younger consumers, influencers and global brand accessibility via ecommerce are accelerating penetration beyond tier1 cities.

Future outlook
By 2030, India’s luxury market is expected to exceed $20 billion, with experiential luxury, automobiles and beauty accounting for more than 65 percent of total value.

More importantly, India will shift from being a “future market” to a core global growth pillar for luxury brands.

In a world of slowing luxury demand, India offers something rare: scale, speed and sustained aspiration, making 2026 not a peak, but a powerful inflection point for the Indian luxury economy.

Sheetal Jain is founder/CEO of Luxe Analytics, Delhi, India. Reach her at [email protected].

We'll be discussing many of these issues, including experiential luxury, cars and beauty and personal care at Luxury Roundtable's third annual Luxury Women Leaders Summit April 15 in New York. We'll have 100 top execs in the exclusive executive summit sharing insights and knowledge and looking to make strong connections with fellow luxury professionals. Do check out our agenda and join us!

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