The luggage market in India has been evolving rapidly in recent years. What was once considered a basic utility item is now an important part of lifestyle and travel choices. Today, people look at luggage not only for its functionality but also for its design, style, and the value it adds to their overall experience. The Indian luggage market has grown at an 11% CAGR over the past decade, shifting from a price-led utility segment to a lifestyle-driven one.
Keeping in mind the upcoming festive season and the winter wedding rush, in this article, let us explore India’s luggage industry and identify a potential investment opportunity.
Current State of India’s Luggage Industry
The Indian luggage industry is valued at Rs 170 billion in CY24, marking a 9.7% YoY increase from Rs 155 billion in CY23, according to CRISIL and MOFSL. During the COVID-19 pandemic, the market contracted sharply, falling 55.6% from Rs 135 billion to Rs 60 billion. However, the sector rebounded quickly with 41.7% growth in CY21 and 64.7% in CY22.
The market has grown at an 11% CAGR in the past decade, reflecting its transformation from utility-driven to lifestyle-oriented.
In CY19, organised players held a 39% share, which rose to 54% by CY24 and is projected to reach 60% by CY27. Conversely, the unorganised market, which dominated with 61% in CY19, has now dropped to 46% and is expected to shrink further to 40% by CY27. In the soft luggage category, unorganised players still hold a significant presence, but their dominance is gradually declining.
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In India, luggage priced below Rs 4,000 dominates the market, accounting for about 60% or Rs 102 billion.
Growth Drivers for the Luggage Industry
Luggage No Longer Just Utility: Consumers now view luggage as a lifestyle and fashion accessory. Urban and semi-urban buyers prefer stylish, lightweight, and durable products that reflect their identity and status, boosting innovation in the branded segment.
Rising Spending Power: Increasing incomes and discretionary spending are driving travel and luggage adoption. Urban buyers favour branded products for their quality and design, while semi-urban and rural markets fuel growth through value offerings and e-commerce exposure.
Shorter Replacement Cycles: Affordable branded options and rising aspirations are encouraging faster upgrades. Backpacks and soft luggage, in particular, are replaced more often, creating recurring demand.
Rise of Organised Players: Brands like VIP, Safari, and Samsonite are steadily gaining ground as consumers seek quality, after-sales service, and warranty benefits. The shift from unorganised to organised players is driving consolidation.
Lifestyle Upgrades: Higher incomes and exposure to global trends are pushing demand for mid-premium and premium luggage. Consumers now place greater value on durability, style, and brand image.
E-commerce Expansion: Online platforms are boosting sales in smaller towns by offering discounts, returns, and variety. This, combined with strong retail expansion, is supporting both established and emerging brands.
Challenges and Risks in the Indian Luggage Industry
Ongoing Conflicts: The industry’s dependence on travel makes it vulnerable to disruptions from geopolitical tensions and conflicts, such as the Russia–Ukraine war, which reduce travel demand and squeeze margins.
Rising Raw Material Costs: Higher input costs, polycarbonate, polypropylene, freight, warehousing, and fuel, are weighing on profitability. Import-dependent players face the highest risk.
Dependence on Chinese Imports: Heavy reliance on China for raw materials and soft luggage creates supply chain risks and policy vulnerabilities, highlighting the need for local sourcing.
Price Competition: Strong discounting in the mass-market segment and aggressive e-commerce promotions are eroding margins and brand value.
Slower Adoption in Smaller Cities: Premium demand remains concentrated in metros due to price sensitivity, weaker brand awareness, and limited retail reach in smaller towns.
Travel and Aviation Growth Driving Luggage Demand
India’s domestic tourist visits rose from 2.3 billion in 2019 to 2.51 billion in 2023, surpassing pre-COVID pandemic levels by 8%. Foreign tourist arrivals are also recovering, from 6.4 million in 2022 to an estimated 9.7 million in 2024, lifting demand for mid-premium and premium luggage.
India’s aviation market is now the world’s third-largest, with domestic passenger growth mirroring China’s 11.2% CAGR from 2009–2019. In 2023, India’s traffic reached levels similar to China’s in 2008, signalling the start of rapid air travel growth.
The revenue of luggage companies remains highly sensitive to drops in air and rail traffic, as seen during COVID-19 pandemic.
Moreover, India now has 162 operational airports compared to 74 in 2014, with 150 more planned in the next five years. This expansion will further enhance connectivity and support travel-driven industries like luggage and accessories.
Wedding Seasons: Boosting India’s Luggage Market
Weddings in India are major consumption events, driving strong demand for premium luggage used in trousseaus, gifting, and family travel. The trend of destination weddings in Rajasthan, Goa, Thailand, Bali, and Dubai has further boosted purchases.
Nearly 4.8 million weddings take place during November and December alone, creating significant demand for luggage.
In FY26, around 67 auspicious wedding dates are expected (up 20% YoY), with FY28 projected to peak at nearly 95 dates. According to the Confederation of All India Traders, weddings during November–December alone could create a market worth Rs 6,000 billion.
Stocks to Add to the Watchlist
In India, the leading listed players in the luggage industry are VIP and Safari Industries, with market shares of around 29% and 20% respectively in the organised segment. Other prominent players include Samsonite, Wildcraft, Nasher Miles, Acefour, Mokobara, Dismantle, Priority Bags, Hidesign, and more.
Over the past three years, Safari Industries has delivered strong returns of nearly 180%, while VIP Ltd has seen negative returns of about 35%.
Future Prospects
The luggage industry is entering a new phase shaped by technology and lifestyle trends. Smart luggage is expected to grow rapidly in India, with a projected CAGR of 20% between 2025 and 2030, reaching $245 million by 2030. Globally, the segment is also expanding at a CAGR of over 12%.
Digitalisation and social media, particularly Instagram, are fuelling demand for stylish and branded luggage, especially among millennials who seek products that align with lifestyle and social validation.
Tourism growth will further support demand, with domestic visits projected to reach 5 billion by 2030 and 15 billion by 2047. Coupled with the government’s $1 billion infrastructure push, improving travel experiences will continue to create strong tailwinds for India’s luggage market.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
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