Team siliconindia

• India’s luggage industry is expected to grow 5–7% in FY26, up from 3% CAGR over the past 3 years.
• New age luggage brands projected to capture 25% market share, growing much faster than legacy players.
• Growth driven by rising travel demand, shift to hard luggage, and expansion through e-commerce channels.

India’s luggage industry, currently valued at around Rs 18,000 crore, is poised for a stronger growth trajectory in FY26, with an expected rise of 5–7%, according to Crisil Ratings. This marks a significant jump from the 3% compound annual growth rate (CAGR) recorded over the past three years.

The surge is being fuelled by increasing leisure and corporate travel, alongside a rising preference for durable hard luggage among both urban and rural consumers. Notably, new age luggage manufacturers known for their stylish, affordable, and fast moving designs are rapidly expanding their footprint in the organised segment, which holds 45% of the market.

Crisil estimates that these new age companies will double their market share to 25% this fiscal, driven by their strong presence on e-commerce platforms, cost efficient production, and wide distribution networks. In contrast, traditional luggage brands are expected to grow at a slower pace, continuing to rely heavily on offline retail while investing in digital channels to remain competitive.

Also Read: NBFCs Eye Growth as Retail Credit Hits Rs 82 Trillion: Crisil

Rahul Guha, Senior Director at Crisil Ratings said “New age players are capturing consumer attention with trendy, functional products and have quickly adapted to online shopping trends”. It also notes that operating margins in the industry are expected to improve by 150–200 basis points, reaching 9.5–10%, aided by lower raw material costs and clearance of low margin stock by legacy brands. Last year, margins for larger players dropped to 8% due to intense pricing pressure.

With design, utility, and durability becoming top priorities for urban customers and rural buyers gradually shifting from soft to hard luggage. The Indian luggage industry is entering a new growth phase led by innovation and modern retail strategies.