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Key Points

India's luggage industry is set for strong 5-7% growth in FY26 after years of slower expansion. New-age manufacturers are capturing market share rapidly through contemporary designs and e-commerce channels. These companies are growing at approximately 20% while legacy players manage only single-digit growth. The shift reflects changing consumer preferences toward stylish, aspirational luggage across both urban and rural markets.

Key Points: India Luggage Industry Growth Hits 5-7% FY26 New-Age Firms Gain

  • New-age luggage makers growing 20% vs single-digit legacy growth
  • Operating margins to improve 150-200 bps to 9.5-10.0% this fiscal
  • Growth driven by rising leisure and corporate travel demand
  • Urban consumers focus on aesthetics while rural shift to hard luggage
2 min read

India's luggage industry to grow 5-7 pc in FY26, new-age firms to capture 25 pc market

India's Rs 18,000-cr luggage market to grow 5-7% in FY26, with new-age firms capturing 25% share through stylish designs and e-commerce expansion.

"We see new-age makers increasing their market share to 25% in the organised segment this fiscal – doubling over the last two fiscals - Rahul Guha, Crisil Ratings"

New Delhi, Sep 1

India's Rs 18,000-crore luggage industry is projected to grow 5-7 per cent in FY26, an increase from a 3 per cent CAGR over the past three years, a report said on Monday.

The robust growth is owed to rising leisure and corporate travel and increased demand for hard luggage, according to a report by Crisil Ratings.

Within this segment, new-age manufacturers will capture 25 per cent market share after growing approximately 20 per cent, outbeating larger legacy ones, who will grow in single digits, according to the rating agency.

The growth this fiscal will be driven by the organised segment, which enjoys a 45 per cent market share, the report added.

New-age manufacturers will increase their share to 25 per cent of the market due to fast-moving, contemporary and stylish designs across segments catering to the aspirational class, and e-commerce expansion.

Further, analysts said that low-cost private label-based production, controlled overheads and wider reach through distribution across e-commerce will aid new-age luggage makers.

"We see new-age makers increasing their market share to 25 per cent in the organised segment this fiscal – doubling over the last two fiscals, even as legacy players continue to invest in online channels to augment their offline market presence,” said Rahul Guha, Senior Director, Crisil Ratings.

Operating margins will improve 150-200 basis points (bps) to 9.5-10.0 per cent this fiscal year, backed by rationalisation of raw material prices and liquidation of lower-margin inventory with the legacy manufacturers.

Margins of large players had declined by more than a third year-on-year to 8 per cent last fiscal because of significant pricing pressure from new-age rivals.

Besides durability, urban consumers focus on aesthetics, design and utility, while the rural ones are slowly shifting from traditional soft to the more aspirational hard luggage, the report noted.

- IANS

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Reader Comments

P
Priya S
The shift from soft to hard luggage in rural areas is interesting. Even in my village in UP, people are now preferring hard suitcases for weddings and travel. It's become a status symbol of sorts. Good to see Indian consumers becoming more aspirational.
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Aman W
While the growth is impressive, I hope these new companies don't compromise on durability for style. Traditional brands like VIP have lasted decades in Indian households. Hope the new players maintain quality standards as they scale up.
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Sarah B
As someone who travels frequently for work, I appreciate the innovation these new brands are bringing. The lightweight designs and smart features like USB charging ports make business travel so much easier. The legacy brands need to catch up quickly!
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Vikram M
E-commerce has really changed the game! I bought my last suitcase from Amazon during a sale - got a good quality hard luggage for half the price of offline stores. No wonder these new companies are growing so fast with online focus.
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Nisha Z
The margin pressure on big players shows how competitive this market has become. Consumers are benefiting from better prices and more choices. Hopefully this growth creates more manufacturing jobs in India too 🇮🇳

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