Big Fat Indian Wedding: At ₹10 Lakh Crore, Expenses Second Only to Food & Grocery

The Indian wedding industry, valued at around ₹10 lakh crore ($130 billion), is the second-largest expense category in India, just behind food and grocery. According to a report, the average Indian spends twice as much on weddings as they do on education.

India hosts between 8 million to 10 million weddings each year, compared to 7-8 million in China and 2-2.5 million in the U.S. “The Indian wedding industry is nearly double the size of the U.S. industry ($70 billion), though smaller than China’s ($170 billion),” stated a report by brokerage firm Jefferies.

Weddings are the second-largest consumption category in India. “If weddings were considered a retail category, they would rank second only to food and grocery ($681 billion),” the report noted.

Indian weddings are known for their elaborate ceremonies and significant spending. This industry boosts consumption in areas like jewellery and clothing and indirectly benefits sectors like automobiles and electronics. Despite political efforts to limit extravagant weddings, luxury celebrations at exotic locations continue to display Indian opulence.

“With 8 million to 10 million weddings held annually, India is the largest wedding destination globally. Estimated at $130 billion in size, according to CAIT, the wedding industry is nearly twice that of the U.S. and is a vital large contributor to key consumption categories,” Jefferies said.

Indian weddings are multi-day events that can range from simple to extremely lavish. Factors like region, religion, and economic background play a significant role in how weddings are celebrated.

The Hindu calendar, which follows the lunisolar system, adds to the complexity, as weddings are held only on auspicious days in specific months, which change every year, according to the report.

“Indians, who are generally value-conscious, love to spend on weddings, often spending more than their income or wealth would suggest. This tendency to overspend is seen across all economic classes.

“The average expenditure on a wedding is $15,000, which is a multiple of the average per capita or household income. Interestingly, an average Indian couple spends twice as much on weddings as they do on education (from pre-primary to graduation), in sharp contrast to countries like the U.S., where wedding spending is less than half of education spending,” the report said.

Luxury Indian weddings often feature exotic domestic and international locations, luxurious accommodations, lavish catering with menus curated by Michelin-star chefs, and performances by professional artists and celebrities. These weddings need to be experienced to be fully understood.

“Given the size and scale, weddings are a key growth driver for several categories in India, such as jewellery, apparel, catering, stay, and travel, to name a few. For example, over half of the jewellery industry revenues come from bridal jewellery, while 10% of all apparel spending is driven by weddings and celebration wear,” the report noted.

“The wedding industry also indirectly fuels various sectors, such as automobiles, consumer electronics, and paints. These industries see a spike in demand around the wedding season, and while it’s difficult to quantify the full impact, industry players meticulously track wedding dates to align marketing strategies and inventory management.” Jefferies mentioned that wedding planning generally begins 6-12 months in advance, and the most elaborate wedding celebrations have seen as many as 50,000 guests.

Bridal lehengas in the luxury segment often feature heavy, intricate work and can weigh up to 10 kgs. Italian luxury brand Bvlgari (part of the LVMH Group) launched its first India-only jewellery piece, the Mangalsutra, in 2021.

“Decor is the most underestimated cost in an Indian wedding,” the report said.

“Some of the most unusual food requests include chocolate pani puri, waffle dosa, and pineapple-flavored paneer.”