The luxury jewelry market is estimated to be valued at US$ 68.82 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Luxury jewelry products including earrings, necklaces, rings, bracelets made from precious metals and gemstones. Luxury jewelry provides aesthetic value and enhances style. Rising fashion consciousness among consumers and increasing disposable income drive the demand for luxury jewelry products.
Market key trends:
Increasing disposable income: The rise in incomes of people, especially in developing countries like China, India and Brazil has increased spending on luxury products. As per World Bank data, the global middle class population with discretionary spending power grew significantly over the past decade. Middle-income groups are the prime customers of luxury jewelry which is boosting market growth. Further, rising affluence is translating to greater expenditure on high-end luxury gifts as well as self-purchases of fine jewelry. This trend of increasing disposable income is expected to continue fuelling demand for luxury jewelry market during the forecast period.
Porter’s Analysis
Threat of new entrants: The luxury jewelry market has low-moderate threat of new entrants due to high initial capital investment required to build brand equity and establish distribution channels. However, high innovation from new startups pose threat to existing players.
Bargaining power of buyers: Buyers has moderate bargaining power due to wide options available from various luxury jewelry brands. However, strong brand loyalty and premiumization keep buyers attached to premium brands.
Bargaining power of suppliers: Suppliers of precious metals and gemstones has high bargaining power due to scarcity of natural resources used in jewelry manufacturing. This makes supplies indispensable for luxury jewelry production.
Threat of new substitutes: Minimal threat from new substitutes exists as luxury jewelry caters to customer's emotion and status symbol which are difficult to substitute.
Competitive rivalry: Industry has high competitive rivalry among established premium brands to maximize market share through continuous innovation in designs and use of latest technologies.
SWOT Analysis
Strength: Large global presence, strong brand image, extensive distribution channels and marketing expertise of players like Gucciogucci and Tiffany.
Weakness: High dependence on economic cycles and discretionary spending, vulnerability to geopolitical tensions impacting supply chains.
Opportunity: Growing middle class In developing nations, rising demand for personalized luxury experience from millennial population.
Threats: Changing consumer preferences towards sustainable products, trade disputes impacting sourcing and sales.
Key Takeaways
The Global Luxury Jewelry Market Size is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing purchasing power of ultra-high net worth individuals globally. The number of ultra-rich individuals with high disposable incomes has significantly increased over last few years especially in developing regions of Asia and Middle East which sees luxury purchases as a status symbol.
Regional analysis: Asia Pacific region currently dominates the global luxury jewelry market with maximum sales coming from China, India and other Southeast Asian countries. This trend is expected to continue as the number of ultra-high net worth individuals is growing rapidly in this region supported by strong economic growth. The Middle East region also offers lucrative opportunities backed by affluent customer demographic seeking luxury goods.
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 brands have established themselves as leaders in the market through their premium craftsmanship and creative designs attracting status conscious high spenders globally.
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