The American jewelry market experienced a volatile year in 2024. While overall sales increased, significant sectors of the market recorded weaker performances. According to analyst Edahn Golan, natural diamonds lost some of their allure, but consumers who chose to buy them were willing to pay higher prices. Lab-grown diamonds (LGD) continued to gain traction, capturing 14% of the market share, even as their prices declined further.
U.S. Jewelry Sales Performance
Total jewelry sales in the U.S. grew by 1.4% in 2024, though the number of units sold dropped by 1.6%. This modest performance was mainly attributed to decreased revenues in the natural diamond segment. As Golan’s analysis highlights, retailers have consistently increased their gross profit margins, which reached an average of 49.6% last year. Stable inventory levels compared to 2023 suggest that retailers are actively managing costs and reducing risks in an uncertain market.
Total US Jewelry Market Sales Rose 1.4% in 2024
Finished Jewelry: Positive Trends
The U.S. finished jewelry sector delivered encouraging results, with sales increasing by 2.9% in 2024. This rebound follows a 3.4% decline in 2023. Although the number of units sold decreased, the average price per item rose by 4.5%, reaching $1,090—the highest increase in five years. According to Golan, this price growth compensated for lower unit sales, contributing to the sector’s overall positive performance.
Natural Diamond-Set Finished Jewelry Revenue
Holiday Season Sales
The holiday season demonstrated strong sales momentum. From November to December, sales revenue rose by 3.7% despite a 3.2% drop in the number of units sold. During this period, finished diamond jewelry maintained its stability. The average price of diamond jewelry increased by 6%, reaching $1,956, reflecting consumers’ preference for larger diamonds in their purchases.
LGD Jewelry
Sales of finished LGD jewelry surged, with a 43% increase in the number of units sold and a 31% rise in total revenue. However, as noted in Golan’s report, this growth marked a slowdown compared to 2023. Prices for LGD jewelry continued to decline, with the average price dropping by 8.3% in 2024. This price trend underscores an ongoing shift in consumer expectations for affordability within this category.
Loose Diamonds: Persistent Price Pressure
Retailers faced challenges in both natural and LGD loose diamond segments. Total revenues from loose diamonds fell by 5% in 2024.
Natural Loose Diamonds
For the third consecutive year, natural loose diamond sales declined. Revenues dropped by 4.3%, and the number of units sold decreased by 6.2%. However, the average price per diamond rose by 2.1% to $10,104, driven by an increase in average diamond size—from 1.30 carats in 2023 to 1.39 carats last year. According to Golan, the rising demand for 2-carat diamonds partially offset declining sales volumes, as consumers took advantage of lower prices to purchase larger stones.
Loose LGD
The loose LGD segment faced contrasting trends. Revenues fell by 7.2%, while the number of units sold rose by 18.6%. This was largely due to a sharp 21.8% drop in average price, which stood at $2,443 per diamond. Retailers adapted to the ongoing price declines by increasing memo agreements and raising gross profit margins, which reached 70.9% by December 2024. During the holiday season, revenue from loose LGD decreased by 10%, while the number of units sold rose by 15.8%. The average retail price fell by 22.3% to $2,185, but gross profit margins soared to a record high of 70.8%.
Conclusion
Despite a challenging year, the U.S. jewelry market demonstrated resilience. Finished jewelry showed signs of recovery, and consumer preferences shifted toward higher-quality, larger diamonds. As per Golan’s analysis, the industry’s adaptation strategies—such as actively managing costs, optimizing inventory, and leveraging higher profit margins—are pivotal in navigating ongoing market dynamics.
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FAQ 2024 U.S. Jewelry Market Performance
How did the overall U.S. jewelry market perform in 2024?
The U.S. jewelry market grew by 1.4% in total sales during 2024, despite facing significant challenges. While overall revenue increased, the number of units sold actually dropped by 1.6%. This modest growth was primarily attributed to decreased revenues in the natural diamond segment, though retailers managed to increase their gross profit margins to an average of 49.6%. The market demonstrated resilience through active cost management and inventory optimization strategies.
What trends emerged in the finished jewelry sector during 2024?
The finished jewelry sector showed encouraging recovery with sales increasing by 2.9% in 2024, bouncing back from a 3.4% decline in 2023. Although fewer units were sold, the average price per item rose significantly by 4.5% to reach $1,090—the highest price increase in five years. During the holiday season, this trend continued with revenue rising 3.7% and average diamond jewelry prices increasing 6% to $1,956, reflecting consumer preference for larger, higher-quality diamonds.
How did lab-grown diamonds (LGD) perform compared to natural diamonds in 2024?
Lab-grown diamonds continued gaining market share, reaching 14% of the total market, with finished LGD jewelry sales surging 43% in units sold and 31% in revenue. However, this growth represented a slowdown compared to 2023. LGD prices continued declining, with average finished jewelry prices dropping 8.3% and loose LGD prices falling 21.8% to $2,443 per diamond. Despite price pressures, retailers adapted by increasing gross profit margins to a record 70.9% by December 2024.
What challenges did the loose diamond market face in 2024?
The loose diamond segment struggled across both natural and lab-grown categories, with total revenues falling 5%. Natural loose diamond sales declined for the third consecutive year, with revenues dropping 4.3% and units sold decreasing 6.2%. However, average prices rose 2.1% to $10,104 due to increased demand for larger stones (average size grew from 1.30 to 1.39 carats). Loose LGD faced even sharper challenges with revenues falling 7.2% despite an 18.6% increase in units sold, primarily due to the 21.8% price decline.
