Ethnic wear market size in India | Consumer Preferences, Competitive Landscape & Forecast 2025

Q: How is the India ethnic wear market expected to grow?

The market is anticipated to grow at a CAGR of 12.4%, primarily driven by festive demand and evolving fashion sensibilities.

Q: Who are the leading companies in the India ethnic wear market?

Soch Apparels, W for Woman, Global Desi, and Libas are the leading companies in the industry.

Q: What are the main factors bolstering the ethnic wear sales in India?

Increasing fashion awareness and the celebration of cultural heritage are pivotal growth drivers.

Q: Which regions within India are witnessing the fastest growth in ethnic wear consumption?

Emerging urban cities are experiencing faster growth due to improved digital access and rising lifestyle aspirations.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA4288

Publication Date: Jun 2025

What is the Ethnic wear market size in India?

According to 6Wresearch internal database and industry insights, the India ethnic wear market is projected to grow at a CAGR of 12.4% over the forecast period.

This massive growth is primarily bolstered by the key factors including rising cultural affinity, an increase in festive and wedding-related expenditures, and a significant shift toward premium, designer ethnic fashion across urban and semi-urban segments.

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Growth Factors of the India Ethnic Wear Industry

Rapid urbanization and higher disposable incomes are leading consumers to spend more on traditional clothing.
E-commerce penetration has drastically increased the reach of ethnic wear brands to Tier 2 and Tier 3 cities.
Growing popularity of fusion styles among younger consumers.
Growing number of Indian festivals and ethnic theme-based events boosting year-round demand.
Expansion of private labels and celebrity-endorsed ethnic fashion lines.
Increasing adoption of sustainable ethnic wear appealing to environmentally conscious buyers.

India Ethnic Wear Market Trends

The ethnic wear industry in India is undergoing a transformational growth of consumer behaviour characterized by digitally native consumers looking for ethnic ways that combine the values of tradition and trends. One of the emerging trends is the steady increase in tailored ethnic wear collections being generated by AI-led personalization fashion recommendation engines. There is a youthful demand for gender-neutral and comfort driven ethnic clothing, and a shift towards eco-friendly fabrics and handlooms is reshaping a consumer preference, forcing locally curated labels to respond through design and cultural storytelling with clothing.

Emerging Developments in the India Ethnic Wear Industry

The India Ethnic Wear industry is experiencing several transformations based on innovation with increased levels of technology and innovative retailing. The hybrid fashion shows, virtual try-on methods utilising AR/AI, drops and resale through social and e-commerce platforms are redefining the consumption methods ethnic fashion is presented, and brands are innovating towards custom stitching services and extended, suitable sizes collections which weigh heavily on presenting value and inclusiveness. Several government-backed programs to reinvigorate local craftsmanship and support for Khadi and handicrafts, are creating a buoyancy within the sector.