Gems and Jewelry Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Gems and Jewelry Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The gems and jewelry market is expected to register a CAGR of 5.5% during the forecast period, 2021-2026.

The COVID-19 pandemic has created a disruption in the supply chain across countries, significantly impacting the trade of gems and jewelry. Moreover, the spending on watches and jewelry, apparel, accessories, and cosmetics witnessed a decline during the initial stage, as consumers started stocking up essentials and staple food items globally. For instance, a prominent player like Pandora closed nearly a third of its stores in China during the pandemic as its business in China was ground to a halt. The company makes about 10% of its annual sales from Hong Kong, China, and its tourists. However, the market is anticipated to be normal once the restrictions are completed lifted.

The increase in cross-cultural designs is one of the latest trends gaining popularity in the gems and jewelry market. The demand for jewelry inspired by Italian, European, and Egyptian cultures is expected to drive the market studied over the forecast period.

The rise in urbanization has resulted in changing consumer behavior related to accessories, switching from wearing more pieces of jewelry to keeping it minimal and sophisticated while maintaining the style statement. Such evolving factors have led to a substantial demand for single-stoned stud earrings, pendants, and rings.

Key Market TrendsHigh Demand for Diamonds Owing to the Emerging Middle Class

The rising middle-income consumers in the developing country, coupled with the increased purchasing power and the rising fashion trends, are boosting the demand for fine costume jewelry across the region. Similar to the gold industry, the diamond industry has high expectations for the demand for diamond, primarily due to the huge emerging middle class in Latin American countries. Sales have indeed increased dramatically in these regions. In June 2015, the first World Jewelry Hub (WJH) was inaugurated in Panama City, and it is the first dedicated diamond, colored gemstone, and jewelry trading center in Latin America, which has infused optimism and vitality into a region that was envisaged to become the world’s next top jewelry market in the near future. Prices for bigger, higher-quality diamonds have indeed risen, but prices for smaller, more commercial stones have remained relatively flat or increased quite modestly, thus driving the market forward.

Asia-Pacific is the Largest Market

In Asia-Pacific, the gems and jewelry market is witnessing changes in consumer preferences due to the adoption of the Western lifestyle. Consumers are demanding new designs and varieties in jewelry, and branded jewelers are able to fulfill their changing demands better than the local unorganized players. Moreover, an increase in per capita income has led to an increase in sales of jewelry in countries like India where jewelry is considered a status symbol. Luxury jewelry, especially gold jewelry, is witnessing an increase in demand in the country. The strong performance of the real jewelry segment is expected to drive the Asian jewelry market. Manufacturers of gems and jewelry in the region are more focused on developing new and innovative design to fulfill the changing needs and demands of consumers by using advanced technologies, such as computer-aided design (CAD) and rapid prototyping (RP), that play a vital role in incorporating 3D printing in jewelry.

Competitive Landscape

The gems and jewelry market is highly competitive with the presence of key players such as LVMH, Buccellati, Richemont, and Swarovski Crystal Online AG. Key players are focusing on online distribution channels for the online marketing and branding of their products to expand their geographical reach and increase their customer base. Leading manufacturers in the gems and jewelry market are focusing on leveraging the opportunities posed by the emerging markets of Asia-Pacific, like China and India, to expand their revenue base because of the rising income levels and their religious traditions, as they consider giving jewelry ornaments as auspicious. The key brands are embarking on innovation and new product developments infused with the latest technology to provide the luxury feeling and perfect craftsmanship to their product offerings.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

LVMH Group
PANDORA JEWELRY LLC
Richemont SA
The Swatch Group AG
Chow Tai Fook Jewelry Company Limited
Tata Sons Private Ltd
De Beers Jewellers US Inc.
Swarovski Crystal Online AG
Signet Jewelers
Chow Tai Fook Jewellery Company Limited

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