India's Influencer Marketing Industry Expected to Reach ₹3,375 Crore by 2026

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Amidst the rapid evolution of the digital landscape, India's influencer marketing industry is poised for remarkable growth. Recent projections suggest an exponential surge, with three-quarters of brand strategies prioritizing influencer marketing as a pivotal component. Anticipated to grow by 25% in 2024, reaching ₹2,344 crore, this dynamic sector is forecasted to expand even further, soaring to ₹3,375 crore by 2026.




According to a report by professional services network EY and Big Bang Social, the creator marketplace owned by talent management agency Collective Artists Network, 56% of brands have already invested more than 2% in influencer marketing. Moreover, 70% of brands plan to maintain or increase their influencer marketing budget in 2024, with half intending to increase it by up to 10%.

The report reveals that 71% of brands engage with influencers on a fixed fee model, while 29% are exploring performance-linked models to drive influencer accountability. Additionally, 77% of influencers reported income growth in the past two years, with 86% expecting over a 10% increase in their income over the next two years.

Amiya Swarup, partner, marketing advisory, EY India, remarked, "Coupled with the projected growth in influencer marketing, it's clear that influencers now define an unprecedented era of knowledge and impact, while also unlocking vast opportunities for brands and marketers."

The growth of influencer marketing is expected to be primarily driven by lifestyle, fashion, and beauty categories, with sectors such as automobiles, e-commerce, and FMCG increasing their spending on influencer marketing the most. Vijay Subramaniam, group CEO and founder of Collective Artists Network, stated, "It is heartening to see that brands are recognizing the potential of the creator economy and are increasingly investing in influencer marketing, with sectors like FMCG, automobiles, and consumer durables leading the way."

Marketers are advised to strike a strategic balance between mega or macro influencers to drive awareness and brand loyalty, while also tapping into the power of micro or nano influencers to drive engagement. Micro or nano influencers, who often create content in regional languages, can be utilized for regional or niche brand promotions.

Interestingly, nano influencers exhibited the highest engagement rate compared to other influencer categories, with 47% of brands preferring to drive influencer campaigns with micro and nano influencers due to the lower cost per reach.

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