Creator economy in India hits Rs 3,500 crore, fueled by ecomm, FMCG sectors: Kofluence

India’s influencer marketing industry is estimated at Rs 3,000–3,500 crore and growing steadily, reveals a report titled 'Decoding Influence: The 2025 Influencer Marketing Report' by Kofluence. As per the report, Instagram continues to dominate the creator economy, with 1.8–2.3 million Indian content creators active on the platform.

Short-form video content, particularly Instagram Reels, has become the preferred format for monetization. Commercial rates range from Rs 500–5,000 per reel for creators with fewer than 10,000 followers, and go upwards of Rs 2 lakh for mega influencers and celebrities.

"India's influence economy has not only seen growth but also a decentralisation of influence. There is a dynamic shift with creators in Tier 2 and Tier 3 cities, often creating content in regional and vernacular languages, who are building strongly engaged communities through hyperlocal narratives. Amidst a trillion-dollar influencer advertising opportunity in India, we’re seeing brands approach influencer partnerships with far more intention and as a strategic marketing lever, driven by data, sustained by technology, and measured against business outcomes," observes Sreeram Reddy Vanga, CEO and Co-Founder of Kofluence.

The report highlights that the ecommerce emerges as the largest spending sector, accounting for 23% of annual influencer budgets, followed closely by FMCG at 19%. The report also notes a sharp uptick in influencer investments during product and service launches, underscoring the format’s increasing impact on brand discovery and conversions.

Regional and hyperlocal marketing are on the rise, with 52% of marketers saying they rely on micro-influencers (10,000–100,000 followers) to drive culturally resonant campaigns. Diwali remains the peak season for campaign rollouts, with most brands initiating planning between two to four weeks in advance.

On the technology front, 61% of brands surveyed are using digital platforms to manage influencer operations, while 29% have already adopted generative AI for creative development, now the leading AI application in the space. As AI, automation and cookie deprecation reshape digital marketing, the report observes a steady transition toward what Kofluence calls “integrated influence”, where advertising mediums converge and influencer content plays a central role in omnichannel strategies.

"With India crossing 900 million internet users, the creator economy is poised for continued expansion, fueled by government initiatives as well as significant technological advancements," said Ritesh Ujjwal, Co-Founder of Kofluence.

Read More: India’s influencer marketing industry hits Rs 3,600 crore in 2024, reveals The Goat Agency-Kantar report