April 23, 2024

Luxury Jewelry Market to Grow Significantly due to Growing Adoption of Technologically Advanced Jewelry Designs

The luxury jewelry market mainly comprises diamond, gemstones, gold, platinum, and silver jewelry that offers aesthetic appeal as well as superior craftsmanship. Fine jewellery items are usually made of precious metals and gems. Jewelry has become a symbol of social status, privilege, sophistication, and wealth over the years. The growing disposable income of the middle-class population and increasing popularity of branded and designer jewelry have been driving the global luxury jewelry market.

The Global luxury jewelry market is estimated to be valued at US$ 60.11 Bn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period of 2024 to 2031.

Key Takeaways

Key players operating in the luxury jewelry market are 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. These players are focusing on adopting advanced technologies such as 3D printing and computer-aided design to offer distinctive jewelry designs.

The key opportunities in the luxury jewelry market include rising disposable incomes, increasing demand for diamond jewelry from millennials and generation Z, and the growing popularity of jewelry rental and resale platforms. Moreover, the rising trend of personalized luxury jewelry designed specifically for customers is another major opportunity.

Technological advancements such as 3D printing, computer-aided designing, and utilization of new materials are transforming jewelry manufacturing processes. 3D printing enables mass-customization by printing unique jewelry designs based on customer specifications. Meanwhile, computer-aided design lowers manufacturing costs and errors.

Market drivers
Growing influence of celebrity endorsements and brand partnerships: Celebrity endorsements and collaborations with luxury jewelry brands have significantly boosted their popularity and sales.

Increasing middle-class population in emerging economies: The rapidly expanding middle-class consumers in developing nations are allocating more on expensive gifts and luxury accessories like fine jewelry to flaunt their social class.

Rising working women population: More working women are financially independent, which translates to greater spending capacity on expensive watches, bracelets, necklaces for corporate events and celebrations.

Current Challenges in Luxury Jewelry Market: Some of the current challenges faced by luxury jewelry market are pricing concerns and availability issues. With rising inflation and economic uncertainties, many customers are hesitant to spend on expensive jewelry pieces. In addition, frequent lockdowns and supply chain disruptions during the pandemic impacted the availability of raw materials and finished luxury products in the market. Further challenges are represented by increasing competition from new digital brands offering affordable luxury options as well as threat from counterfeit products cutting into original brands’ market share.

SWOT Analysis
Strength: Branded luxury jewelry provides exclusivity and status symbol appeal to customers. Strong brand recognition and premium craftsmanship raise entry barriers for competitors.
Weakness: High dependence on economic conditions makes demand volatile. Low inventory turns mean high fixed costs have to be borne.
Opportunity: Emerging markets like China, India provide untapped growth potential. Luxury consumption is rising with growing affluence in Asia Pacific and Middle East.
Threats: Rising sustainability concerns and lab grown diamonds threaten diamond jewelry sales. Increasing online purchases raise risk of counterfeiting and information security issues.

Geographical Regions
North America region currently holds the major share of around 30% of global luxury jewelry market in terms of value sales. Presence of influential luxury brands and high spending power of customers in US and Canada support the market concentration. The Asia Pacific region excluding Japan represents the fastest growing geographical segment for luxury jewelry market between 2024-2031. Double digit economic growth and rising wealthy populations in China and India are driving the surge in luxury consumption including jewelry pieces.

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1.Source: Coherent Market Insights, Public sources, Desk research

2.We have leveraged AI tools to mine information and compile it