Shopping online for virtually anything you need has become a way of life. The practice even holds true for fine jewelry. In fact, the online jewelry market size attests to this big change.
Investors and jewelry experts remain confident that the increase in market size would continuously increase. Reports state that the market could reach a value of $27 billion at a compound annual growth rate of 15.39% in a four-year span starting this year.
A big driver of the growth of the online jewelry market size seems to be the innovation that lies at the heart of the explosion of offerings available to many jewelry enthusiasts. According to PR Newswire, specifically, the growth comes from the patronage of buyers from the online segment of the market, so many are now wondering, “What is the size of the jewelry industry?” following the significant global changes in buying power and behavior.
How Big is the Jewelry Market in the US?
Compared to other countries, North America accounts for 39% of the market growth. It seems that the significant change in lifestyle for individuals from this segment may even exceed those that hail from both the European and MEA territories.
The US seems poised to raise the purchasing trends for online jewelry markets. Statistically, the online jewelry sales in the US has been on a steadily increasing trend since 2012 up to 2019. While there is an understandable dip in 2020 when the COVID-19 pandemic hit, the numbers did not drastically dip in the following two years.
Oberlo adds that this may be partly attributed to the equally growing fashion industry in the US. Since the pandemic, the rise of ecommerce for fashion and retail has not stopped or declined for US patrons. And because it runs in tandem with online jewelry markets and its own customer base, it’s almost natural for the two industries to grow side by side.
A Slight Break in Spending in 2020
The 2020 break in purchasing power may be attributed to the common practice of cutting down on expenses for many households. At the time, COVID-19 was quite a novel encounter, hence, many consumers opted to focus on spending on basic necessities and saving the rest.
Following the significant 2020 dip, however, online jewelry sales have slowly inched their way back up. While it has not yet gotten back to its peak in 2019 at $8.36 billion, the slow rise may reflect signs of sales and innovation ramping up.
Other Segments on the Rise: Costume and Bridal Jewelry
Apart from fine jewelry and its general market, two niches stand out with great projections for growth. Costume jewelry may have quite the momentum at a CAGR at 7.31%, whereas bridal jewelry may hit a 4.52% CAGR for a growth of $13.5 billion.
When people hear the term “costume jewelry,” different connotations come to mind. Some may expect it to be faux jewelry, a far cry from fine jewelry. Others understand that the growth of a changing lifestyle may be reflected in more bespoke costume jewelry.
Another contributor to this rise may be the use of more sustainable materials and the steering clear of precious metals and materials. One of the hurdles to fine jewelry is its exclusivity. Some big brand names tend to hold leverage over certain innovative techniques on how to create jewelry or how to source them from mines all over the world.
However, with the growing trend of bespoke and smaller companies that aim to carve their own niches through costume jewelry, many jewelry enthusiasts now enjoy a wider array of options of sellers to choose from.
Bridal Jewelry Market: Forever on the Rise
The pandemic has not only affected certain actions but also restricted others. In the case of weddings, a lot of couples have been bumped off getting hitched from 2020 and 2021. Because of this, 2022 may be seeing quite the influx of couples ready to say “I do.”
Bridal jewelry seems to be quite the player in this industry. Not only that, the rise of online shopping has made every month bridal jewelry season.
According to JCK Online, stores are seeing an uptick in their sales via the online space. The shift in shopping behavior may be partly due to more demand. And a part of this increase may be due to the accessibility of various jewelry types at a single click.
What is the future of the jewelry industry?
For now, it’s safe to say that the outlook of the jewelry industry is looking quite bright. Never has there been as much interest as there has been demand. And this blending of the two and their timely coinciding side-by-side may just push the jewelry market to greater heights.
