India’s jewellery market is seeing a shift in buying patterns as elevated gold prices reduce volumes while keeping overall jewellery spending resilient. The market, estimated at around INR 7 lakh crore, is increasingly moving towards value per gram rather than volume-led growth.

According to the World Gold Council’s India Focus report, jewellery demand declined 15.4% year-on-year to 75.1 tonnes in Q2 CY2026. However, the value of jewellery demand increased 34.4% to INR 1.13 lakh crore during the quarter. For H1 2026, jewellery volumes fell 17.1%, while value rose 40% to INR 2.13 lakh crore.

The price-led shift is prompting consumers to opt for lighter-weight, lower-carat and studded jewellery, while exchange transactions are also gaining traction. The trend is changing the way retailers approach growth, with higher ticket values offsetting lower gold volumes.

Organised retailers are reporting growth despite the volume decline. Titan’s jewellery business grew 43% in Q1 FY27, while Kalyan Jewellers reported 46% growth in consolidated revenue. Titan also added 33 jewellery stores during the quarter, taking its jewellery network to 1,227 outlets.

The market is also seeing a wider shift towards diamonds, newer designs and branded retail formats. Recycled gold is emerging as another growth driver for organised jewellers as retailers seek to manage gold costs and consumer affordability.

“While the overall volume demand for jewellery could remain under pressure owing to the steep rise in gold prices and price-sensitive nature of purchases, the overall consumer spending on jewellery is expected to remain resilient,” said Akhil Goyal, director, CareEdge Ratings.

For jewellery manufacturers and retailers, the shift points to a market where product mix, design, purity and value proposition are becoming increasingly important as gold prices remain elevated.