The global Luxury Jewelry Market is estimated to be valued at US$ 56.02 Bn in 2020 and is expected to exhibit a CAGR of 7.1% over the forecast period 2021 to 2028, as highlighted in a new report published by Coherent Market Insights.
- A) Market Overview:
Luxury jewelry refers to high-end and premium jewelry made from valuable materials such as gold, platinum, diamonds, and gemstones. These jewelry pieces are often handcrafted and intricately designed, making them exclusive and sought after by consumers worldwide. Luxury jewelry is a symbol of prestige, status, and individuality, and is commonly purchased as an investment or as a statement piece for special occasions.
The market for luxury jewelry is driven by increasing disposable income, especially among the middle-class population in emerging economies. The rising number of affluent consumers, coupled with a growing preference for luxury and premium products, is boosting the demand for luxury jewelry. Additionally, changing consumer preferences, evolving fashion trends, and the growing influence of social media have also contributed to the market growth.
- B) Market Key Trends:
One key trend observed in the luxury jewelry market is the growing popularity of sustainable and ethically sourced jewelry. With increasing awareness about environmental and social issues, consumers are becoming more conscious of the origin of the materials used in their jewelry. They are demanding transparency in the supply chain and are opting for jewelry brands that use responsibly sourced materials and ethical practices. For example, companies like Tiffany & Co. and Bulgari are known for their commitment to sustainability and ethical sourcing, which resonates well with consumers looking for luxury jewelry with a conscience.
- C) Porter’s Analysis:
– Threat of new entrants: The luxury jewelry market is characterized by high entry barriers due to the exclusive nature of the products, brand reputation, and high capital requirements. Established luxury jewelry brands have a loyal customer base and extensive distribution networks, making it difficult for new entrants to compete effectively.
– Bargaining power of buyers: The bargaining power of buyers in the luxury jewelry market is relatively low. The exclusivity and prestige associated with luxury jewelry make customers less price-sensitive. They are willing to pay a premium for high-quality, handcrafted pieces and are more focused on the brand and design rather than price.
– Bargaining power of suppliers: The bargaining power of suppliers in the luxury jewelry market is moderate. Jewelry manufacturers and designers rely on a steady supply of high-quality materials such as gold, diamonds, and gemstones. However, they often have multiple suppliers and can switch to alternative sources if needed.
– Threat of new substitutes: The threat of new substitutes in the luxury jewelry market is relatively low. Luxury jewelry holds a unique appeal and offers a sense of exclusivity and prestige that cannot be easily replicated by other products.
– Competitive rivalry: The competitive rivalry in the luxury jewelry market is intense, with several established brands competing for market share. These brands differentiate themselves through innovative designs, craftsmanship, brand reputation, and marketing strategies.
- D) Key Takeaways:
– The global Luxury Jewelry Market is expected to witness high growth, exhibiting a CAGR of 7.1% over the forecast period. This growth can be attributed to increasing disposable income and changing consumer preferences for luxury and premium products.
– In terms of regional analysis, North America is expected to dominate the luxury jewelry market due to high consumer spending power and a strong presence of luxury jewelry brands. Asia Pacific is anticipated to be the fastest-growing region, driven by rising disposable income, urbanization, and growing middle-class population in emerging economies like China and India.
– Key players operating in the global luxury jewelry market include Gucci, Harry Winston, Cartier, Tiffany & Co., Richemont SA, Buccellati, Graff Diamonds, Bulgari, Mikimoto, and Chopard. These players focus on product innovation, brand building, and expanding their global presence to maintain their market position.
The global luxury jewelry market is poised for significant growth, driven by increasing disposable income, changing consumer preferences, and the growing demand for sustainable and ethically sourced jewelry.