Jewelry Market Set to Witness an Uptick during 2019 to 2025

Posted by Mrudula Karmarkar on December 22nd, 2021

The global jewelry market size is expected to reach USD 480.5 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a CAGR of 8.1% over the forecast period. The market is expected to witness significant growth due to increase in disposable income and shift in consumer shopping preferences.

Ring accounted for the largest market share in 2018 owing to increasing consumer inclination towards elegant and stylish products. Rings are available in a variety of sizes and designs, thereby increasing their consumption among men as well. Additionally, many precious stones are discovered that can be mounted in the rings. This is expected to result in product innovation and drive the demand for rings in the forecast period.

Bracelets are expected to witness substantial growth over the projected period due to high popularity and availability. Bracelets have replaced bangles in daily wear and are seen as a style statement by majority of the working-class women. This shift in consumer perception related to jewelry products is expected to drive the overall demand.

Majority of the sales in the market were driven by gold and the maximum gold jewelry sales were recorded in China and India. Being the world’s largest jewelry market, China is the major consumer of gold and diamond. Increasing awareness among consumers related to various hallmarks to authenticate purity of gold is another factor boosting the growth of the gold jewelry. Sales of diamond jewelry are expected to increase at a significant rate owing to changing consumer lifestyle in the developed countries.

In 2018, Asia Pacific held the largest jewelry market share in terms of revenue due to the presence of the major players as well as high demand from countries like China, India, and Hong Kong. Asia Pacific is anticipated to witness substantial growth due to increasing disposable income of the population in this region. Changing fashion trends, along with awareness regarding authenticity of precious gems and metals, are the other factors propelling the market growth in this region.

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A vast client base of the jewelry industry makes it possible for manufacturers to cater to a large market and earn profits. The introduction of new designs and emerging fashion trends are attracting customers. Manufacturers are leveraging this daily change in fashion to innovate more products and designs to attract customers.

Further key findings from the study suggest:

• By material, platinum is expected to witness a decline in the forecast period owing to its costliness and increasing consumption of gold and diamond. However, its demand may increase in North America due to highly developed countries and rich lifestyle
• The ring product segment dominated the jewelry market in 2018 due to its increasing consumption in day-to-day routine and introduction of a variety of engagement and wedding jewelry collections by major manufacturers
• The industry is highly competitive in nature due to the presence of many key global players. The local players are expected to give stiff competition owing to their unorganized nature of sales
• As a step towards diamond transparency and consumer loyalty, Tiffany & Co. has begun sharing the provenance of its newly sourced diamonds with the customers.

The emerging trend of bridal jewelry is gaining momentum in the market. In countries like India, a wedding is considered a huge affair having a lot of rituals and functions. Growing expenditure on wedding functions is expected to positively impact market growth. Women are focusing on the latest trends of necklaces, hairpins, and bangles. The availability of customization of such products is an important factor likely to fuel market growth. Usage of gold chains and necklaces is no longer limited to weddings and functions. Men and women both wear rings, plain gold chains, and anklets as a fashion statement. Earrings and bracelets are also gifted on various occasions or events like birthdays and anniversaries. This consumption behavior is expected to positively impact market growth.

The global market is highly competitive and fragmented due to the presence of many key manufacturers like Tiffany & Co., Swarovski, Signet Jewels, and Chow Tai Fook. However, major manufacturers are facing stiff competition from local manufacturers in various parts of the world. Product innovation and sales via the online channel are the key trends in the market. Manufacturers are focusing on online services to learn consumer demand and update their manufacturing technologies with the latest processes. Additionally, websites are customized as per the consumer’s purchase and search history to create demand. This is expected to positively impact market growth in the forecast period.

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare