The LUXE EFFECT

A GROWING NUMBER OF CONSUMERS ARE CRAVING A LIFE OF REFINED PLEASURES, DESIRING ELEVATED EXPERIENCES AND UNPARALLELED QUALITY

In the intricate dance of India’s economic landscape, a compelling theme has emerged for equity investors - the rise of premiumization. Beyond a mere trend, it represents a strategic response to evolving consumer aspirations, a burgeoning youth demographic, and transformative shifts in economic dynamics such as income levels, working population, education and urbanization.

Let’s delve into the key pillars of the premiumization wave.

EXPLOSION IN INDIA’S MILLIONAIRE POPULATION

Despite wealth inequality concerns, India’s millionaire population is booming, expected to surge by 107% within five years, fuelled by a robust economy, a thriving stock market, and a young entrepreneurial spirit. While concentrated in major cities, this growth reflects rising income levels and changing consumption patterns, highlighting both the opportunities and challenges of India’s evolving wealth landscape.

Capgemini World Wealth Report 2023: India’s High Net Worth Individual (HNWI) population, defined as individuals with investible assets of $1 million or more, grew by 10.3% to 8,22,000 in 2022. This includes millionaires and individuals with even higher wealth.

Knight Frank Wealth Report 2023: India is expected to witness the fastest growth in the ultra-high net worth individual (UHNWIs) population (individuals with $30 million or more in net assets) globally, with a projected 34% increase between 2023 and 2027.