What drives the unstoppable growth of India's wedding economy?
Our demographic dividend is a major concern when it comes to jobs. But when it comes to matrimony, there are few constraints. An estimated 11-12 mn weddings take place each year, involving 22-24 mn individuals. With a potential pool of 600 mn unmarried people, the wedding economy is vast, and growing. Spending on weddings has surged across all income levels, with even those at the bottom of the pyramid trying to emulate the lavishness of the top.
Thorstein Veblen's theory of conspicuous consumption - 'keeping up with the Joneses', or, perhaps, more suitably, 'with the Agarwals' - has become the norm. The journey typically begins with dating platforms, where the search for a partner can start for as little as ₹1,000. From there, it extends to matrimonial websites and elite sweetheart brokers who offer more curated matchmaking services, often including background checks. Together, these services cater to a wide spectrum of users. Dating platforms alone are estimated to have a turnover of around ₹8,000 cr, with 80-90 mn persons actively using them.Jefferies has reported that the wedding market is the second-largest retail segment in India, second only to food. Weddings are expensive affairs, typically involving spending on venues, catering, wedding planners, event managers, decorators, make-up artists and DJs - especially for the ubiquitous sangeet, a tradition now gaining popularity even in southern and eastern states.
These celebrations often stretch over several days, with significant outlays not just by the bride's and groom's families, but also by guests - on clothing, jewellery and gifts. Destination weddings, which have grown increasingly common, add travel costs for 100-200 guests to the overall spend.
At the lower end, a wedding may cost ₹3-5 lakh, with the average hovering around ₹10-12 lakh across India's roughly 10 mn marriages each year. At the upper end, lavish weddings can cost ₹3-5 cr or more, depending on the scale and the 'statement' the hosts wish to make. As a result, the Indian wedding industry is valued at ₹11-12 lakh cr. India Brand Equity Foundation's estimate: ₹10.8 lakh cr ($130 bn). Beyond visible expenses, there's also the oft-unspoken cost of 'gifting' - the usual euphemism for dowry - which can include property, luxury vehicles, jewellery and furniture. The scale and spread of wedding-related spending have a significant multiplier effect across several sectors, particularly services. For instance, a single wedding can employ 100-200 people on a gig basis, providing a temporary, but vital, boost to the informal workforce.How does economics explain this process? Nobel Prize-winning economists Alvin Roth and Lloyd Shapley developed a matching algorithm that underpins much of the logic behind modern dating platforms. These platforms have adapted and scaled such algorithms to bring potential partners together efficiently.
Once a match is made, behavioural economics kicks in. The bandwagon effect prompts couples to emulate popular wedding trends, leading to a demonstration effect - where weddings evolve into multi-day spectacles to uphold social appearances. As the number of affluent individuals in India has grown, so has the snob value attached to weddings. This has fuelled demand for differentiators such as destination weddings, themed ceremonies and even celebrity appearances, each adding a premium to the overall experience.The wedding industry is notably recession-proof and is projected to grow to ₹18-20 lakh cr over the next five years. While Covid temporarily disrupted the trend - with online weddings becoming a brief norm - those days are behind us. Much like companies calling employees back to office, society, too, has returned to full-scale, in-person celebrations. (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.) Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Tech company CEO shown the door is back with AI bang
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