Some people may think that in an economic crisis or even during recovery, luxury items would not be the top-of-mind commodities for many individuals. However, some industries, like the jewelry market, tend to stay for the long haul. This, according to a latest jewelry market forecast.
Many countries have started to pick up the pace to get into gear with the new normal. With this in the background, the jewelry industry reflects an unexpected growth and an even bigger projection for its market’s future. In terms of the jewelry market forecast, investors with some assets in this industry may be in for a sunny outlook in the next few years.
Beyond a 5% Growth Expected
In a recent market dynamics analysis conducted by The Luxury Jewelry Market, the luxury jewelry segment seems to be looking at a 7.1% CAGR in the next six years. After sealing a value of $56 billion in 2020, the projected growth before the decade ends will sit at roughly $92.4 billion.
There’s no one reason to be thankful for the jewelry industry’s progress. But an interesting trend shows that the competitors and big players in the industry seem to contribute quite a bit. Instead of a divided industry, the competitors serve as inspirational pulls to each other’s progress.
Recently, many brands started creating ripples in the long-standing industry. Some brands like Mignon Faget overhauled branding to make room for new customers. Other innovative brands like Aether Diamonds made waves by rolling out its line of air diamonds.
Between new technology advancements in jewelry making to a more inclusive approach to fine jewelry, the industry seems to face only an upward direction.
What is the Future of Jewellery Business?
Beyond the figures, practices seem to also be ripe and ready for some major changes. EIN Newswire reported that more brands have moved to the the online platform to cater to younger markets. Even traditional names like Bulgari and Tiffany & Co made headlines when they expanded their presence in the online sphere.
This isn’t at all surprising, if one were to really examine the trends. There’s quite a bit of revenue for going online, starting with the new practice of direct-to-consumer lines. Reports showed that consumers now look at this new mode of purchase for its better pricing alternatives and superb return policy.
It’s no wonder that some long-standing brands like Signet Jewelers eyed e-commerce market drivers like Blue Nile. The recent acquisition just further shows how much the online market means to jewelry companies, regardless of tradition.
What is the Demand for Jewelry?
If numbers are anything to go by, buyers continue to see jewelry as an essential affair. When compounded with consumers’ rising spending power, some even see it as a good investment that can withstand global fluctuations.
Outside the United States, the luxury jewelry market also seems to aim quite high, with an estimated reach of $40.19 billion by 2030. Similar trends for physical jewelry stores got reflected in global sales. Many saw fewer sales, which contributed to a slight dip in numbers for many sectors. Part of this may also have been due to a lack of materials for import for creating jewelry in the first place.
But as all of these now seem poised to change, a recuperation may mean a jumpstart not just in production but also in purchase from the consumer side.
The Focus of Growth: Precious Metals, Sustainable Jewelry
If you’re interested in keeping up with jewelry trends, it might be good to look at recent fashion trends to get a sense of what may experience bigger demand. While rings will forever be the favorite and most-bought jewelry piece, necklaces and earrings do not lag far behind.
In fact, last year, necklaces accounted for a fourth of the global demand for jewelry. For the fast-growth segment, earrings seem to be dominating the space. And with innovative technology breaking into the fine jewelry scene, these two fashion pieces have also experienced a nice uptick in choices in the sustainability department.
Aether Diamonds, for instance, released its first sustainable line. The line included earrings and necklaces that feature small but precious diamonds made purely out of carbon. Experts expect more similar trends to move the industry forward. They see a bright forecast for brands adopting sustainable ideas by using precious gemstones and metals for production.
Is Jewelry Worth Investing?
Given the trends in jewelry even at the height of the COVID-19 pandemic, it’s safe to say that this wearable investment is here to stay in the long run. Changes in lifestyle may ramp up what the pandemic slowed down in the past two years.
If you’re looking to join the fray of investors or just jewelry enthusiasts, sustainable may be the way to go. As more brands try to redefine the true meaning of luxury, the map of sustainable, luxury jewelry also expands and may continue to do so in the coming years.