If you have been following jewelry trends, you would know that the outlook for the industry remains positive despite recent hiccups. Even though jewelry may not be considered a necessity, some still see it as an industry worth investing in. And in the case of the costume jewelry market, it’s set to see quite the rise.
What divides some jewelry enthusiasts may be in the kind of jewelry they want to buy. Because a burgeoning segment of the market will see a significant growth in the future. The costume jewelry segment may see a great expansion in the next eight years.
Costume Jewelry market: Great Investment, Lower Cost
Perhaps the biggest issue with the jewelry market may be the rising cost of raw materials. Even in the midst of a pandemic, jewelry production and sales did not slow down. If anything, retailers saw a change in behavior and spending habits of jewelry consumers. Additionally, these same retailers have been able to adapt to the changes. They either adapt to the shift to an online platform, or they incorporate more sustainable ways of creating jewelry.
This seems to have created a massive room for growth in the different sectors. A recent report shows that the costume jewelry segment performed far better than expected across five territories. These include North America, South America, Asia and the Pacific, the Middle East, and even Africa. Asia-Pacific took the biggest slice of the pie, despite the five other regions being more known for mass production of jewelry all over the world.
Currently, the costume jewelry market has crossed the $30 billion mark in terms of value. In the near future come 2027, analysts have pegged it to reach the value of $47 billion at a compound annual growth rate of 7.36%.
Costume Jewelry Market: Understanding the Segment
Considering the common view of costume jewelry, one might wonder, “Is there a market for costume jewelry?” If one were looking at the industry as an investment, costume jewelry holds far too small a value.
In fact, wearable costume jewelry can easily wear out when worn. Its main purpose may be relegated to everyday wear. Some even expect costume jewelry to tarnish easily compared to fine jewelry.
One of the biggest advantages of costume jewelry lies in its use of less expensive and more readily available materials. This may include synthetic precious stones, natural but inexpensive ones like glass crystals and other semi-precious stones, as well as inexpensive precious metals like brass and aluminum.
An Explosion of Designs to Choose From
It’s true that fine jewelry has already been moving quickly into the realm of innovation. In recent times, more sustainable designs have been released. New technology has allowed jewelry designers to come up with unique designs using more sustainable materials.
However, a main concern especially for buyers on a budget is that the prices of fine jewelry have been on the rise. While this makes for great investment, it also means one’s spending money right now will mean smaller carats or diamonds of lesser quality.
According to Business Wire, experts even note that fast fashion trends tend to support the fast rollout of fashion jewelry. This may even be complemented by the rise in disposable income, as well as demand for more affordable accessories that can complement daily wear.
A Shift Towards More Affordable Options
Still, many may wonder, “How do I know if my costume jewelry is valuable?” Fast fashion may sometimes equate to a low value for jewelry. But thanks to the changing trends, more costume jewelry makers have been innovating in their materials of choice as well.
It’s no more common to find semi-precious stones and intricate beads used in fashion jewelry. Artisanal beads and bespoke jewelry are also all the rage for the younger market.
Fortune Business Insight also noticed a new trend, this time involving customers’ preference for more cost-effective jewelry over expensive ones. Analysts see this shift as progress, because the demand is highly met by new supply, which comes in the form of new styles, designs, and materials used. This corroborates the long-standing trend that fashion and jewelry often go hand-in-hand in terms of growth.
Is Costume Jewelry a Good Business?
There’s no doubt that fine jewelry has become more accessible. Case in point: Signet Jewelers, which has started to grow its own tactics. The company’s recent acquisition of Blue Nile, a brand that undoubtedly caters to the younger market, reflects jewelry brands’ continued efforts to understand and reach the market.
While a lot of the players in fine jewelry either have established names or merged powerhouses, costume jewelry appears more flexible for incoming business. Because demand has started to surge for more accessories, more players have started getting into the industry.
According to reports, costume jewelry’s biggest market restraint may be the issue of counterfeit products offered at lower value. For smaller costume jewelry makers, the fast-paced demand may come as a blessing.
As more women in the corporate setting delve into costume jewelry, Grand View Research reports that the market has also shifted towards quantity over quality at times. Costume jewelry seems to be at the heart of this. Without too much investment, new jewelry enthusiasts can get into the fashion habit without shelling out too much for a single jewelry piece.