New Delhi [India], October 29 (ANI): The Indian luggage industry is projected to reach Rs 267 billion by calendar year 2028, growing at a compound annual growth rate (CAGR) of 12 per cent over CY23-CY28, according to a report by Motilal Oswal.

The report highlighted that after contracting sharply to Rs 60 billion in CY20 due to the COVID-19 pandemic, the sector rebounded strongly, clocking a robust 37 per cent CAGR between CY20 and CY23.

It stated 'Indian luggage industry is projected to reach Rs 267b by CY28'.

This recovery was supported by a surge in domestic and international travel, rising disposable incomes, and a growing preference for organized and branded products.

Branded players, which held a 52 per cent market share in CY23, are expected to outpace overall industry growth.

The report noted that this segment will continue to benefit from rapid urbanization, premiumization, and the increasing shift from unbranded to branded products.

Product innovation, expansion of e-commerce, and rising consumer aspirations are further driving this transformation.

Industry estimates pegged the size of the Indian luggage market at Rs 170 billion in CY24, with branded products gaining higher market share and presenting significant conversion potential.

Analysts believe that the ongoing transition from utility-based purchases to lifestyle-oriented consumption is reshaping the industry.

According to the report, India's luggage market is witnessing a shift in perception, as luggage is increasingly being viewed as a status symbol.

This change is being fueled by evolving social trends, rising urban incomes, and wider exposure to global lifestyles. Increasing discretionary spending, shorter product replacement cycles, and growing demand from semi-urban and rural areas are also expanding the consumer base.

The report mentioned that the premium segment remains the fastest-growing category, supported by Millennials and Gen Z consumers aspiring for lifestyle upgrades.

The report also highlighted that technological innovations--such as smart luggage with GPS tracking, USB charging ports, and mobile app connectivity--are turning luggage into a high-utility and aspirational product.

The continued expansion of e-commerce and modern retail formats is expected to further support organized players and drive premiumization in the years ahead. (ANI)