If you were looking for a sign to invest in the jewelry industry, then this must be it. A recent forecast about the jewelry industry shows a compound annual growth rate of 5.1%. This forecast stands strong from 2021 to 2029, predicting quite a growth especially in the North American territory.
Rings seem to be the segment with the biggest growth factor in terms of revenue based on 2021 performance. Jewelry enthusiasts appear to still be very partial towards rings in general due to the range of designs. It helps that more technologies pop up to create different styles, making it even more appealing as a segment.
Gold Prices–and Interest–On the Rise
While the ring segment may see the fastest growth, it’s not equal for all rings. The materials used for the rings seem to have quite an impact, and gold is leading this segment. It’s no surprise that gold has seen an uptick, as it rarely moves with inflation rates. It’s one of the most precious metals, and when compounded with precious gemstones set in jewelry, it’s marked to be quite a good investment indeed.
Of course, just as not all precious metals are equally valuable, even gold has its own segments. Research shows that the yellow metal variant still leads in investment preferences. Other variants, like rose gold, which mixes in copper and silver, or green gold, which features silver, can have lower value. It’s good to note these variants and how they may affect the overall value of your jewelry piece.
Jewelry for Men: Another Growth Segment?
Nowadays, everyone can wear jewelry—and apparently, everyone wants to! Women no longer hold the title for being the only ones who like wearing jewelry to express themselves or their sense of fashion. Analysts see a rise in acceptance of and practice in wearing jewelry among men. And it’s not just limited to the typical demands like cufflinks and tie bars. According to Grand View Research, men now look for gold chains, necklaces, and signet rings.
Experts see the male segment as a new but viable client base. With a lot of designers considering designs that are either unisex or exclusively for men, more customers are bound to get attracted into the jewelry industry.
Bridal Jewelry Designs Also on the Rise
If there’s one segment that doesn’t seem to ebb with whatever season or trend, it’s the bridal jewelry market. Wedding ceremonies always occur, and even with differences in culture and practices, the occasion still seems to be marked with jewelry. Some cultures even make weddings quite special occasions, which means that a big chunk of expenses may go into the ceremony and other frills.
For some married couples-to-be, weddings also hold a very special meaning, thus prompting preferences like customization. Engagement rings may be available via retail and off-the-rack, but jewelry experts have seen a rise in bespoke bridal jewelry.
Plus. recent mergers among top-tier jewelry companies may appear to influence the flow and trend of the market. If you’re wondering, “How big is the jewellery industry?” then it might interest you to know that acquisitions dynamically change this landscape. Recently, Signet Jewelers, a big distributor of many fine jewelry brands in the United States recently acquired Blue Nile. Because of the latter’s specialized focus on the younger market and the digital space, the market’s about to grow even bigger. The possibilities of reaching a diverse customer base, even outside the country will definitely bring together various influences and inspirations for the burgeoning jewelry market.
What is the Market Value of Jewelry?
For a bigger overview of the jewelry market, you may be surprised to know that its current value has reached $249.02 billion in 2021 alone. The pandemic seems to have had an opposite effect as more consumers bought jewelry during this time.
The pandemic seems to have had an opposite effect among consumers. Instead of an expected dip in sales and purchasing power, many jewelry enthusiasts seem to have added more to their collection during the months of downtime and lockdowns. Almost half of the typical consumers increased their spending on jewelry. Experts see this as a way to push for more diverse and viable means of investments.
What is the Future of the Jewelry Industry?
So, what does the future hold for the jewelry market? A lot of possibilities. For starters, certain regions have a lot of growth potential, like India. The jewelry industry is projected to contribute up to 7% in terms of GDP and 15% for total exports in segment alone.
Jewelry enthusiasts may expect more imports to come from India. The government itself appears to put a premium on export for this sector. Additionally, look forward to more jewelry exports and designs from the likes of the UAE and Hong Kong, apart from local designers in the US.
As with any segment, experts also warn against counterfeit jewelry’s potential rise. Particularly, there may be challenges in telling the authenticity of gemstones. Imitation variants are now harder to distinguish from real ones. That’s why it’s always good to brush up on the 4Cs of gemstones and be firm about certifications to guard your investment.