In a recent analysis published by trend analytics company Tenoris, industry analyst Edahn Golan analyzes diamond jewelry sales in the US in January, including lab-gown gems.
In a setback following the holiday season the US fine jewelry and diamond retail sector fell 4.9% year-over-year in revenue for January. Golan attributes this downturn primarily to a significant drop in loose diamond sales, which make up over 21% of total jewelry sales. This, he says, constitutes a “disappointing” beginning to 2024, contrary to the modest recovery anticipated after a stronger-than-expected holiday performance.
January witnessed a decline in finished jewelry sales, with unit sales dropping by 5.1% and retail value by 3.3%. The market contraction was driven by low- and high-priced jewelry segments, where items below $1,000 saw a 7.1% decrease in unit sales, while items above $100,000 saw a substantial 40% drop.
Conversely, the mid-range market between $1,000 and $100,000 was stable, with a marginal 0.8% decrease in unit sales and a 1.3% increase in retail sales value. Higher-end consumers in the $5,000 to $100,000 price range saw a 2.6% increase in unit sales and a 4.4% rise in value.
Natural diamond jewelry showed a 3.1% increase in retail sales value. However, unit sales saw only a marginal 0.1% uptick. Noteworthy improvements were observed in bracelets, pendants, and necklaces, while bridal jewelry displayed mixed results.
Golan also discusses signs of expansion in the lab-grown diamond (LGD) market, with a notable 44% year-over-year increase in unit sales of LGD-set finished jewelry. Particularly noteworthy is the rise in LGD-set engagement rings, representing 22.1% of diamond engagement rings, up from 16.5% in January 2023.
The article raises concerns about the decline in average expenditure on loose natural diamonds, coupled with a persistent drop in US natural diamond sales since May 2022. The decline in revenue from loose LGD sales, down 3.3% compared to January 2023, adds to the industry’s worries.
Even as the quantity of loose diamonds sold continues to increase, the revenue from these sales is persistently declining. This can be attributed to the consistent decrease in prices of lab-grown diamonds – despite the growing demand. In comparison to January 2023, there was a 7.8% decline in loose diamond sales, despite a 6.4% increase in the number of diamonds sold.
Read the full analysis here.
