The Global Luxury Jewelry Market was valued at USD 52.38 Billion in 2022 and is projected to reach USD 93.72 Billion by 2030, registering a CAGR of 7.43% for the forecast period 2023-2030.
Market Defintion
The world's luxury jewelry market is expanding quickly and is very dynamic. The global market for luxury jewelry is extremely fragmented and primarily driven by fashion trends and consumer behavior. As a result, in order to compete in both local and international markets, jewelry manufacturers must keep an eye on emerging trends and technologies. It is anticipated that the market will expand with the incorporation of new technologies, such as Computer Aided Systems (CAD), in the jewelry manufacturing process. Growing westernization, modernization, and disposable income are the primary forces behind the growth of the luxury jewelry market. The development of the jewelry industry, the emergence of new fashion jewelry, and consumers' growing inclination for opulent products are additional indirect factors propelling the growth of the luxury jewelry market. The increasing inclination of consumers towards branded jewelry has incentivized manufacturers to encourage the broad distribution of high-end jewelry options in the market. With the rise in television marketing and the growing usage of ornaments in ceremonies, there will be rich and satisfying long-term prospects for the luxury jewelry market. Furthermore, a significant increase in customer faith in astrology will open doors for the luxury clothing industry.
Market Size:
- 2022: USD 52.38 Billion
- 2030: USD 93.72 Billion
- CAGR (2023-2030): 7.43%
Luxury Jewelry Market Dynamics
Drivers Propelling the Demand for Luxury Jewelry include
Growing Need for Jewelry That Is Gender-Neutral : Gender nonconformity is more prevalent than before. An estimated 35% of Generation Z are aware of someone who identifies as non-binary. Customers purchase jewelry for themselves in addition to special occasions. Furthermore, Gen Z is particularly resistant to categorization or labels. Brands can now target products for specific people and occasions thanks to this. One pioneer in gender-fluid jewelry is Shaun Leane, a jeweler based in London. Gay couples are requesting more custom engagement rings from his brand. A lot of high-end jewelry companies are now producing gender-neutral collections in response to this expanding consumer demand. For instance, Gucci has introduced a line of watches that are gender-neutral, and Cartier has introduced a line of engagement rings that are suitable for both sexes. Luxury jewelry sales are being propelled by the popularity of these collections among consumers. The market for luxury jewelry is expanding due to several factors, including the increasing demand for jewelry that is gender-neutral. People are more inclined to invest in jewelry and other luxury items as they have more money to spend. Growing demand for personalized and specially created Unique jewelry that expresses a person's style is becoming more and more popular. The demand for unique and custom-designed jewelry has increased as a result of this. Escalating desire for sustainable and ethically sourced luxury Concerns about how their purchases will affect society and the environment are growing among consumers. As a result, there is a growing market for luxury jewelry made from sustainable and ethical sources, overall, this factor drive the growth of luxury jewelry market.
For instance, in February 2022, according to Retail Jeweler of India, looking up to global fashion, male celebrities are setting new trends for multiple earrings, charms and rings. Eventually, 2022 is paving way for gender-fluid fashion and keeping up with the glorious times of self-love, Prakshi Fine Jewellery has launched its gender-fluid collection called ‘I Love Me’.
Growing interest in sustainable jewelry : Globally, there is an increasing demand from millennial and Gen Z consumers for jewelry that is ethically and sustainably made. Customers are looking for products made of recycled materials as they become more conscious of sustainability. While brands like Vieri and Lilian Von Trapp exclusively use recycled gold, many contemporary jewelers also use it. Sustainable jewelry will grow dramatically as a result of fine jewelry purchases being influenced by sustainability factors. Luxury jewelry made with sustainable practices includes lab-grown diamonds that use renewable energy, traceable gems that are ethically sourced, recycled or ethical metals, ecological gold, restoring vintage or secondhand pieces, ethical employment throughout the supply chain, and preserving craftsmanship. Using recycled materials like gold and diamonds as well as creating innovative, environmentally friendly production techniques are two examples of this. For instance, the Swiss Federal Institute of Technology Zurich and the jewelry company Chopard are working together to create a novel method of recovering gold from obsolete electronic gadgets. Growing consciousness of how jewelry production affects society and the environment: Customers are growing more conscious of the negative effects that jewelry manufacturing has on the environment and society, including the use of harsh chemicals and the mining of precious metals. Customers are becoming more conscious of this and are looking for jewelry that is made ethically and sustainably. In response to the increasing demand for sustainable jewelry, high-end jewelry brands are utilizing innovative design and production techniques, this factor fueling the growth of luxury jewelry market.
For instance, in August 2023, according to Larsen Jewelry, the global trend for sustainable Jewellery has surged each year, rising from 166 searches per month in 2018 to 2,548 in 2022, a 1,434% increase.
Recent Developments
In June 2023, Explora Journeys, the luxury lifestyle hospitality brand of the MSC Group, announces the launch of an all-new luxury watch and Jewellery retail offering on board EXPLORA I and EXPLORA II, partnering with brands among the most desirable and renowned for craftmanship, reflecting Explora Journeys ‘European heritage and commitment to excellence.
In April 2021, This spring, Tiffany & Co. debuts, Charles Tiffany Setting, its first men’s engagement ring featuring a bold solitaire diamond. The ring is named after founder Charles Lewis Tiffany, who, in 1886, captivated lovers around the world with the introduction of the women’s solitaire diamond engagement ring.
Restraint
Variation in raw material prices is restraint the growth of market : Platinum and gold are common raw materials used in the production of high-end jewelry. Since fine jewelry is frequently made of gold, the price of gold is crucial to producers of luxury goods. Because of the COVID-19 pandemic, raw material supply chains have been disrupted by blocked trade routes and global lockdown, which has resulted in a persistent increase in gold prices. A decrease in product demand was also observed by the luxury jewelry industry despite the rising price of gold. The escalating cost of platinum, a highly sought-after precious metal utilized in upscale jewelry, is hindering the growth of the market. Jewelry manufacturers find it challenging to effectively manage their inventory levels and predict production costs due to fluctuating raw material prices. A sudden increase in the cost of raw materials could catch manufacturers off guard and make it difficult for them to keep enough inventory on hand to satisfy customer demand. On the other hand, manufacturers might be left with extra inventory that they have to sell at a loss if prices fall suddenly. Disruptions to the supply chain can also result from variations in the cost of raw materials. A shortage or price increase at a critical supplier has the potential to destabilize the entire supply chain and postpone the manufacturing of high-end jewelry. Missed sales opportunities and product shortages may result from this., overall due to this factor, hinder the growth of luxury jewelry market.
For instance, in January 2022, according to SUP and LUXE, the model 2.55 in quilted leather signed Chanel is now 7800 euros against 6050 euros in December 2020. An increase of 30% justified by the increase in the price of raw materials but also due to strong fluctuations in exchange rates.
Challenges
Tight Rules Governing the Exchange of Exotic Jewellery : High tariffs and indirect taxes apply to the import and export of jewelry and precious metals in a number of nations, raising the final product's overall cost. Due to the fact that many potential customers are starting to second-guess their decision to buy luxury goods, this could hinder the market's overall growth. Moreover, there is an uneven distribution of precious metals used in the production of luxury jewelry worldwide. Political unrest among nations also impedes the free flow of luxury goods, which could stunt the expansion of the world market for luxury jewelry. For luxury jewelry companies, breaking the law can result in penalties, legal issues, and reputational harm. This can damage a brand's reputation and erode consumer trust, which will ultimately hurt sales and profitability. Regulations that are too onerous may reduce the transparency of the luxury jewelry market and make it challenging for customers to confirm the legitimacy and ethical sourcing of goods. This may erode customer trust and lower demand.
Opportunities
Increasing wealth of women is a significant opportunity : The purchasing power of women increases in tandem with their economic empowerment as wealth rises. Women are now able to set aside a portion of their income for luxuries like fine jewelry because they are financially independent. The market for luxury jewelry can take advantage of this expanding customer base and modify its products to suit the tastes and inclinations of wealthy women. The demand for luxury jewelry is rising as a result of shifting cultural standards and the changing roles that women play in both the personal and professional spheres. Luxury jewelry is more likely to be seen by women as investments and status symbols than as simple accessories. Demand for upscale and exclusive jewelry items is driven by an increasing desire for distinctive and prestigious pieces. Women are becoming wealthier, and this often means that they want to buy things for themselves instead of waiting for special occasions to give gifts. These days, women are more likely to treat themselves to expensive jewelry as a way to celebrate big life achievements and express themselves. This change in consumer behavior creates a new opportunity for marketing tactics that highlight the self-indulgence and empowerment that come with owning expensive jewelry.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 52.38 Billion |
| Market Forecast in 2030 | USD 93.72 Billion |
| Compound Annual Growth Rate (CAGR) | 7.43 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Material, By Product, By Application Outlook, By Distribution Channel & By Region |
| By Material |
|
| By Product |
|
| By Region |
|
| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Luxury Jewelry Market
The Luxury Jewelry Market is segmented by material, product, application outlook, distribution channel and region.
By Material
The gold segment held the largest market share in 2022 : By Material is sub segmented into diamond, gold, platinum, precious pearl, gemstones, others. The gold segment accounted for highest market share in global luxury jewelry market for 2022. Gold is expected to hold the largest market share owing to the high demand for gold-based jewelry in the Asia-Pacific, especially in developing countries like India, China, and Bangladesh. According to the World Gold Council, the world's three most vital gold trading centers include the London OTC market, the U.S. futures market (COMEX), and the Shanghai Gold Exchange (SGE). The usual gold futures contract size is 100 troy ounces. During times of political and economic turmoil, gold is an appealing investment. Gold jewelry accounts for half of the global gold consumption, whereas investments account for 40% and industry accounts for 10%. In addition, China, Australia, the U.S., South Africa, Russia, Peru, and Indonesia are among the world's top gold producers. India, China, the U.S., Turkey, Saudi Arabia, Russia, and the UAE are among the highest gold jewelry buyers.
On the other hand, the diamond segment has the significant market share over the forecast period, due to Diamonds are frequently associated with status, luxury, and love. They are a well-liked option for investment pieces, other jewelry gifts, and engagement rings because of this perception. Given that they are the hardest natural material on Earth, diamonds are incredibly resilient and stain- and damage-resistant. They are therefore a fantastic option for jewelry that will be worn regularly. Since they are so rare, diamonds are created under conditions of intense heat and pressure. Their perceived value is enhanced by their rarity, which also makes them an appealing investment piece. Emeralds are a rare and exquisite type of deep green gemstone, they are frequently utilized in necklaces, earrings, and rings.
By Product
The necklace segment was the leading segment in 2022 : By Product, which is divided into necklace, ring, earing, bracelet, others. The necklace segment accounted for largest share 28.6% in global luxury jewelry market for 2022. a necklace can be found in many different designs and styles, such as a collar, choker, or chain necklace. In addition, there are bold neck chains, multi-strand chains, and thin or fine necklaces. It's common to see pendants made of precise metals and stones, like gold, platinum, emerald, ruby, black opal, and diamond. The abundance of luxurious necklaces on the market is fueling the expansion of the luxury jewelry industry.
On the other hand, the ring segment is anticipated to expand over the forecast period, Since the demand for luxury rings for daily use is so high, rings are predicted to dominate the global jewelry market. The most common item of diamond jewelry that buyers are currently purchasing, according to a De Beers Group study (36% of all respondents), is a ring. Couples also purchase separate sets of rings for various occasions, which is another important factor propelling the market. The demand for rings is also being fueled by the strong influence of Western culture, particularly on developing economies in the Asia-Pacific region.
By Application Outlook
The Women segment was the leading segment in 2022 : By application outlook, which is divided into women, men, children. The Women segment accounted for largest share 69.20% in global Luxury Jewelry market in 2022. One of the main reasons propelling the luxury jewelry market is the rise in the number of female self-buyers. The enormous influence of self-buyers in this market has been highlighted by the 2021 JCK State of the Jewelry Industry Report. In one of its surveys, 76% of participants in the jewelry industry reported that they had observed a rise in women making large purchases of jewelry for themselves. According to JCK report data collected over the previous two years, 73% of female jewelry buyers purchased at least one piece of jewelry for themselves, citing research results from Platinum Guild International. Though 45% of older generations also reported purchasing at least one piece of jewelry for themselves, Gen Z was the most influential age group for self-purchasing. Players in this market can create new designs by concentrating on women who purchase things for themselves.
Men segment is anticipated to register rapid growth in forecast period, Males are becoming more and more financially independent, giving them more money to spend on upscale items. Men are utilizing jewelry to express their personal style and are growing more at ease with donning it. The growing popularity of men's engagement rings is fueling the demand for high-end men's jewelry. Men are becoming the target of more and more marketing campaigns from luxury jewelry brands, which is contributing to the increase in awareness of men's jewelry. The most common style of opulent jewelry for men is the watch.
Regional Analysis
Asia Pacific occupied the largest market share in 2022 : Asia Pacific has the largest revenue market share 40% in 2022, The global luxury jewelry market is primarily controlled by Asia Pacific, with China and India being the region's two most significant jewelry markets. The prominent factors associated with the market growth in this region are the latest designs and the demand for high-quality jewelry among elite customers. In addition, integrating emerging technologies, such as computer-aided design in jewelry manufacturing, drive the Asia-Pacific luxury jewelry market. The growing focus on visual appeal, the power of social media, and the widespread tendency of internet browsing among consumers also result in market growth. Furthermore, the presence of many top global players, such as Tanishq, Malabar Gold and Diamonds, Qeelin, and Wallace Chan, in the region significantly impacts the consumption of luxury jewelry.
On the other hand, North America accounted for the significant share over the forecast period, The North American region has a notably high demand for luxury jewelry because of the high disposable incomes of its consumers. The area presents a distinct opportunity for retail luxury jewelry sales since it is a popular luxury travel destination. The market for luxury jewelry has benefited from the rise of e-commerce, particularly since the COVID-19 outbreak. Some of the main advantages of e-commerce include easy access to data about product design, price, and quality as well as the ability to source raw materials online. Additionally, the e-commerce industry stepped up to ensure market stability as the COVID-19 pandemic disrupted sales at physical stores throughout the region. During this period, luxury jewelry sales on the internet increased.
List of the prominent players in the Luxury Jewelry Market:
- Guccio Gucci S.p.A.
- The Swatch Group Ltd.
- Richemont
- Tiffany & Co.
- GRAFF
- Louis Vuitton SE
- Signet Jewelers Limited
- Mikimoto
- Pandora Jewelry
- LLC.
- Harry Winston Inc
- Chopard International SA
- Bulgari S.P.A.
Segmentation Analysis of the Luxury Jewelry Market
By Material
- Diamond
- Gold
- Platinum
- Precious Pearl
- Gemstones
- Others
- Necklace
- Ring
- Earing
- Bracelet
- Others
- Women
- Men
- Children
- Online
- Offline
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Luxury Jewelry Market:
Following the COVID-19 pandemic, the world market for luxury jewelry came to an abrupt stop. Since most luxury jewelry is composed of mine-derived precious metals like gold, diamonds, platinum, and so forth, the entire market was put on hold while all mining activities were temporarily outlawed in the wake of the global lockdown imposed by governments to stop the virus's spread. In addition, consumers' priorities quickly changed from purchasing luxury goods to consumer goods, which decreased the market for luxury jewelry. Moreover, the complete shutdown of all distribution networks hindered the import and export of goods, making it impossible to meet the widespread demand. The COVID-19 pandemic had a significant impact on the global luxury jewelry market, causing initial disruptions and shifts in consumer behavior. However, the market exhibited resilience and showed signs of recovery as the pandemic progressed. The initial outbreak of COVID-19 in 2020 led to widespread lockdowns and restrictions, forcing physical jewelry stores to close and disrupting supply chains.
