Rising Disposable Incomes Boost Luxury Denim Category in India

Rising e-commerce penetration allowed allowed consumers access to luxury denim in tier-1 and, tier-2 and tier-3 cities, who have always had disposable income but lacked accessibility...

- Pallavi Arora

The super-premium men and women jeans category is expected to grow at a CAGR of 14.8% and 14.3%, respectively from 20232028 in India. The robust growth is attributed to the evolving economic landscape in the country. Real GDP in India continued to expand over 2022, recording 7.0% growth, outperforming the average growth of 3.9% in Asia Pacific. According to Euromonitor International's Economies and Consumers data, the disposable incomes of Indians recorded a 10.5% CAGR over the period from 2018-2023, with predictions for a 10.3% CAGR over the forecast period.

With rising disposable incomes in the country, consumers are expected to be inclined to spend more on luxury and discretionary items. According to Euromonitor Economies and Consumers data, consumer expenditure on clothing and footwear in India in 2023 increased by 44% from 2018 in absolute terms. Additionally, the rising e-commerce penetration of luxury brands has aided the visibility and uptake of luxury apparel brands.