ARS Special Report · Code SP-16

Tamil Nadu & Chennai Jewellery Market Report 2026

How big Tamil Nadu’s jewellery market is, what record gold prices are doing to buyers, how fast organised chains are growing, and which trends jewellers and investors must plan for.

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Executive summary

South India accounts for about 40% of India’s jewellery demand, and Tamil Nadu holds nearly a third of the South Indian market, making it one of the largest jewellery markets anywhere. In 2025, gold prices in India rose by about 74%. Indians bought 24% less jewellery by weight, but spent a record amount by value.

Buyers are moving to lighter designs, exchange and savings schemes, coins and bars, and in the South, lab-grown diamonds. Organised chains keep gaining share from standalone jewellers. This report sets out the numbers and what they mean for Tamil Nadu.

~40%South India’s share of India’s jewellery demand
31-33%Tamil Nadu’s share of the South Indian jewellery market
-24%Fall in India’s jewellery demand by volume in 2025, while value hit a record
37-42%Organised chains’ share of India’s jewellery retail in FY2026, up from 30-35% in FY2020

Sources: World Gold Council Gold Demand Trends 2025; CRISIL report cited in the Lalithaa Jewellery Mart Limited RHP; industry news up to September 2026. Full source list in the report.

What’s inside the full report

  1. Executive summary and key figures
  2. National context: record prices, lower volumes, 2026 outlook
  3. Tamil Nadu and South India market size, with ARS state estimates
  4. The shift to organised retail and Tier 2 and 3 expansion
  5. Consumer trends: lightweight jewellery, exchange, savings schemes, lab-grown diamonds, silver, younger buyers
  6. Opportunities and risks for jewellers and investors
  7. Questions only field research can answer
  8. Full sources

🔒 The full report (7 pages, PDF) is delivered by email after payment. It is not available for download on this website.

Who it’s for

  • Jewellery chains and family jewellers in Tamil Nadu
  • Lab-grown diamond and silver brands entering South India
  • Investors, banks and gold loan companies
  • Mall developers and retail real estate consultants
  • Researchers, journalists and students

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