Global gems and jewelry market is forecasted to register a CAGR of 5.5% during the forecast period 2020-2025.
- The increase in cross-cultural designs is one of the latest trends that is gaining popularity in the gems and jewelry market. 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 styling statement. Such evolving factors have led to substantial demand for single stoned stud earrings, pendants and rings.
Key Market Trends
High Diamond Demand, Owing To Emerging Middle Class in Latin America
The rising middle-income level consumers in the country, coupled with increased purchasing power and the rising fashion trends, is boosting the demand for fine, costume jewelry across the region. Similar to the gold industry, the diamond industry to has high expectations for the demand for the 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, and this has infused optimism and vitality into a region, which 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.
Asia Pacific is the Fastest Growing 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, jewelry is considered as a status symbol. Luxury jewelries, especially gold jewelries, are 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 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.
The global gems and jewelry market faces high competition; the majority of the share is held by the leading players, including LVMH, Buccellati, Richemont, and Swarovski Crystal Online AG. Key players are focusing on online distribution channels for their online marketing and branding of their products, in order to expand their geographical reach and increase their customer base. Leading manufacturers in the gems and jewelry market are focusing to leverage 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 development infused with the latest technology, so as to provide the luxury feeling and perfect craftsmanship to their product offering.
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