Gold Jewellery Consumption to Dip by 9-10% in FY26 on Rising Prices: Report

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By Priya Sharma, Nisha Gupta, & Aditi Mehta – Team asarkari

The jewelry market has witnessed fluctuating consumer demand in recent years, heavily influenced by the rising prices of gold. According to a recent report, gold jewellery consumption in India is anticipated to decline by 9-10% in the fiscal year 2026 (FY26), due to the continuous hike in gold prices. This dip comes at a time when the consumption of bars and coins has seen marked increases, showcasing a significant shift in consumer behavior.

Shifting Trends in the Gold Market

As reported, consumption of bars and coins surged by 17% in FY24 and an impressive 25% in FY25. The Indian market has consistently seen consumers opting for gold in forms other than jewellery amid soaring prices. This declining trend in jewellery consumption raises concerns about the overall health of the gold market, which has historically been a hallmark of tradition and cultural significance in India.

Rising gold prices have not only deterred consumers from purchasing jewellery but have led many to reassess their investment portfolios and savings strategies. As more consumers channel their funds into bars and coins, this trend indicates a potential paradigm shift in how gold is viewed—more as a financial asset than merely decorative adornment.

Factors Contributing to Falling Consumption

The forecasted decrease in gold jewellery consumption can be attributed to multiple factors:

• Price Volatility: With gold prices soaring, many consumers are opting to defer or reduce their jewellery purchases, leading to a downward trend in overall consumption.
• Investment Preference: The increasing appreciation of gold as a stable investment is making it more attractive for consumers to buy physical gold in the form of bullion rather than jewellery.
• Evolving Customer Preferences: Many younger consumers are now prioritizing experiences and digital assets over traditional gold purchases.

The Broader Economic Impact

This change in consumption patterns will likely have broader implications for the economy. The jewellery sector not only contributes significantly to employment but is also a major driver of the Indian economy. A continued dip in jewellery consumption may result in lower revenues for manufacturers and retailers, creating a ripple effect across the supply chain.

Conclusion: Navigating Future Trends

As we move closer to FY26, stakeholders in the gold market will need to adopt innovative strategies to counter the emerging trends. Educating consumers on the long-term benefits of jewellery investments and exploring new ways to connect with the younger demographic may prove essential. While the short-term forecast indicates a decline, the foundational love for gold remains strong in India, suggesting that adaptability will ultimately define the future of gold consumption.

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