Global luxury jewelry industry is as dynamic as it is fast growing. Global luxury jewelry market is highly fragmented and mostly driven by consumer behavior and fashion trends. Therefore, jewelry manufacturers need to be focused on the changing trends and developments to compete in the global and local market. Integration of new technologies such as Computer Aided System (CAD) in the manufacturing of jewelry is expected to aid in growth of the market. CAD technology makes complex designs possible and allows manufacturers to create new jewelry designs, which is otherwise challenging to design manually.
The global luxury jewelry market was valued at US$ 56.02 Bn in 2020, and is expected to reach US$ 92.35 Bn by 2028, exhibiting a CAGR of 7.1% during the forecast period.
Several companies that manufacture luxury jewelry are adopting various organic and inorganic growth strategies, in order to sustain their market position. Mergers, acquisitions, expansions in various geographies, and new product launches are some of key strategies followed by major players in the market. For instance, in September 2018, Fosun Group, a China-based investment and operating conglomerate, acquired 80% of the International Gemological Institute (IGI). Since 1975, IGI offers gemological training, diamond grading, and gem and jewelry certification through 23 laboratories and schools worldwide.
Figure 1. Global Luxury Jewelry Market Revenue Share (%), By Region, 2020
Among regions, Europe held the dominant position in the global luxury jewelry market in 2020, accounting for 32.0% market share in terms of revenue, followed by North America and Asia Pacific. Europe is a well-established market for luxury jewelry products. Key trends such as jewelry customization, increasing popularity of pop-up stores, and fusion of costume jewelry with trending fashion are boosting growth of the market in Europe. Moreover, rapid adoption of online luxury jewelry marketing is playing crucial role in boosting sales of luxury jewelry. For instance, leading luxury jewelry brands such as David Yurman, Tiffany & Co., and Swarovski are combining online and offline activities to increase product visibility. These brands are continuously active on social media and markets their products through Instagram and Facebook.
|Base Year:||2020||Market Size in 2020:||US$ 56.02 Bn|
|Historical Data for:||2017, 2018, and 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||7.1%||2028 Value Projection:||US$ 92.35 Bn|
Gucciogucci S.P.A., Harry Winston, Inc., Societe Cartier, Tiffany & Co., Compagnie Financiere Richemont SA, Buccellati Holding Italia SpA, Graff Diamonds Corporation, Bulgari S.p.A, K. Mikimoto & Co., Ltd., and Chopard International SA
|Restraints & Challenges:||
High cost of luxury jewelry is a major restraining factor for growth of the luxury jewelry market. Demand for luxury jewelry is limited to specific consumers due to its high cost. For instance, according to Coherent Market Insights’, in general, the cost of luxury jewelry falls between US$ 1,500 to US$ 10,000, whereas affordable jewelry costs less than US$ 1,500. Therefore, most of the consumers prefer affordable jewelry which costs less than US$ 1,500. However, the impact of high cost of luxury jewelry is projected to decrease with increasing disposable income of consumers worldwide.
Increasing demand for men’s jewelry represents potential opportunity for growth of the market over the forecast period. Conventionally, women are more inclined than men towards purchasing luxury jewelry. However, this trend is changing, owing to increasing focus of men on self-grooming and on aesthetic appeal. Moreover, increasing influence of social media has led to high adoption of latest fashion trends in men. Such factors are contributing to increasing demand for men luxury jewelry products such as bracelets, rings, necklaces, and others. Therefore, manufacturers are focusing on these products to gain an edge in the market.
Figure 2. Global Luxury Jewelry Market Revenue Share (%), By Product Type, 2020
On the basis of product type, in 2020, the necklace segment accounted for 28.6% of the revenue share. Necklace is available in various styles and designs including chain necklace, choker necklace, and collar necklace among others. Furthermore, thin or fine necklaces, bold neck chains, and multi-strand chains are also available. Pendants of precise metals and stones such as gold, platinum, emerald, ruby, black opal, and diamond among others are popular. Availability of a wide variety of luxury necklaces is driving growth of the luxury jewelery market.
Global Luxury Jewelry Market - Impact of Coronavirus (COVID-19) Pandemic
The COVID-19 pandemic had a significant impact on luxury jewelry market and has affected every stage of the supply chain – from mining companies to major jewelry brands across the globe. Major mining companies had lowered their level of production, owing to reduction in demand for luxury jewelry worldwide. The organizers of jewelry fairs, for their part, have resolved to postpone or cancel their events around the world in order to curb the spread of the epidemic. Various governments are focused on introducing various schemes in order to revive the luxury jewelry market. For instance, in February 2021, Government of India, educed import duty for Gold & Silver (from 12.5% to 7.5%) and Platinum & Pallidum (from 12.5% to 10%) to bring down the prices of precious metals in the Indian market.
Luxury jewelry is designed from different materials such as gold, silver, diamond, and platinum. It consists of different products such as necklace, ring, bracelet, hair ornaments, earring, leg & feet ornaments among others.
Among material, diamond segment accounted for largest revenue share in the global luxury jewelry market in 2017, owing to rising demand for diamonds in rings. To cater to this demand, key players are introducing diamond engagement ring collections. For instance, in September 2018, Tiffany & Co. (American luxury jewelry and specialty retailer) introduced new engagement ring line consisting of diamond rings. Among product type, necklace segment accounted for the largest market share in 2017, and is expected to retain its dominance, owing to lucrative demand for neckwear in Asian countries such as China, India, and Japan.
Europe dominated the market in 2020, and Asia Pacific is projected to be the fastest growing region in the global luxury jewelry market over the forecast period. Government initiatives are playing important role in growth of luxury jewelry in Asia Pacific. For instance, in India, The Gems and Jewelry Export Promotion Council (GJEPC), signed a Memorandum of Understanding with Maharashtra Industrial Development Corporation (MIDC) to build India’s largest jewelry park in Mumbai with overall investment of US$ 2.1 billion in 2018.
Several companies that manufacture luxury jewelry are adopting various organic and inorganic growth strategies, in order to sustain their market position. For instance, in April 2017, The Franco-Swiss group FM Industries Sycrilor, which manufactures luxury jewelry for companies such as Louis Vuitton, Cartier, and Mont-Blanc started one of its technological and production centers in the Portuguese city of Covilha. The center was established to cater to increasing demand for high quality precision specialization of jewelry metals.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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