Luxury Jewelry Market Witnessing High Growth Due To Rising Demand From Affluent Population
Luxury jewelry includes fine quality materials such as precious gems and metals used for adornment. Diamonds, emeralds, rubies and sapphires are the most commonly used precious stones for luxury jewelry items including necklaces, rings and earrings. Luxury jewelry products are distinguished from others based on the premium materials, intricate craftsmanship skills and luxurious designs. Brands like Cartier, Tiffany and Bulgari are renowned globally for fine luxury pieces that are status symbols and reflect affluence.
The global 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 Dynamics
Rising demand from affluent population: The increasing prosperity in emerging economies like China and India is resulting in growth of wealthy population who have higher disposable incomes. This affluent demographic is inclined towards acquiring luxury products like high-end jewelry to display their status and wealth. According to Knight Frank Wealth Report 2019, the number of millionaires is expected to rise to 27 million globally by 2023 from 24 million in 2018. This escalating affluence is driving the demand for luxurious jewelry items.
Another key driver for this market is increasing brand consciousness. Consumer preference for premium global luxury jewelry brands is strengthening on the back of widespread branding and marketing initiatives by companies. Major brands are expanding their retail presence globally and influencer marketing to enhance visibility and allure of their products among target customers. For example, Cartier has opened new boutiques in India. In the luxury sector, strong branding helps companies command premium pricing for their elite aura and perceived quality which attracts brand loyal, wealthy clientele. Thus branding plays a pivotal role in this high-end market.
SWOT Analysis
Strength: The luxury jewelry market features strong brand recognition of top brands such as Gucciogucci S.P.A., Harry Winston, Inc. and Tiffany & Co. These brands enjoy high levels of customer loyalty and trust due to consistently delivering exclusive, high-quality products. Additionally, the increasing disposable incomes of customers in developing regions is expanding the potential customer base.
Weakness: The luxury jewelry industry is quite consolidated, with the top few brands controlling a major market share. This concentration could reduce competitiveness. Furthermore, economic uncertainties and the high costs associated can restrict the customer base only to ultra-high net worth individuals.
Opportunity: The rising popularity of customized and personalized luxury jewelry provides an opportunity for brands to strengthen customer relationships. Additionally, the growth of online retail channels is making luxury jewelry more accessible to new customer segments globally. Rapid urbanization in developing markets like Asia and Middle East is creating a surge in luxury consumption.
Threats: Economic slowdowns could negatively impact discretionary spending on luxury products. Additionally, geo-political tensions and regulations could disrupt supply chains and international trade. Rising environmental concerns also pose reputational threats if sustainability standards are not met by brands.
Key Takeaways
The Global Luxury Jewelry Market Demand is expected to witness high growth over the forecast period of 2023 to 2030 supported by a CAGR of 7.1%. The market size is projected to reach US$ 68.82 Billion by 2023.
Regional analysis:
The Asia Pacific region dominates the luxury jewelry market currently and is expected to maintain its leading position over the forecast period as well. Rapid income growth and increasing luxury spending in major countries like China and India are driving the regional market. Furthermore, the young millennial population's rising affinity for branded luxury products will further propel future growth.
Key players:
Key players operating in the luxury jewelry market are Gucciogucci S.P.A., Harry Winston, Inc., Societe Cartier, Tiffany & Co., Compagnie Financiere Richemond SA, Bulgari S.p.A, Graff Diamonds Corporation, K. Mikimoto & Co., Ltd., and Chopard International SA. These top brands continue to drive innovation and strengthen their exclusive brand images through strategic initiatives like celebrity endorsements and expansion into new product categories and regions.
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