A recent analysis by trend analytics firm Tenoris, featuring insights from industry analyst Edahn Golan, highlights a potential resurgence in the US jewelry market for May 2024.
Mother’s Day jewelry sales surpassed last year’s figures, signaling a possible turnaround in consumer demand. Jewelry sales rose 1.8% year-over-year for the second consecutive month, with average expenditure per item up 2%, despite flat unit sales.
The Jewelry Index, tracking jewelry commodity spot prices, has shown an upward trend since March.
Retailers reported higher demand from buyers at recent Las Vegas trade shows. However, demand for loose lab-grown diamonds was low, resulting in significantly reduced prices
Finished jewelry
Finished jewelry sales saw a 2% year-over-year increase in value, despite a 0.5% decline in units sold. Average spending per item rose 2.6% to $966, with tennis bracelets experiencing a 21.4% surge in sales value and a 26% rise in units sold.
Natural diamond jewelry
Natural diamond jewelry sales increased by 0.7%, with average expenditures rising 2.8% to $1,856. Fashion rings were the top-selling item, comprising nearly one in every nine items sold in May. However, engagement ring sales declined, with unit sales down 3.8% and revenue down 4%. The average spending on natural diamond engagement rings remained steady at $3,963.
Natural diamond sales are slow, with an average sale time of 19 months compared to 16 months for other jewelry items.
Lab-grown diamonds
As for lab-grown diamonds (LGD), LGD jewelry saw a 53% increase in units sold year-over-year, although average prices fell 8%. Rings dominate the LGD market, accounting for 62% of sales by value and 48% by units sold. Tennis bracelets are gaining popularity, with unit sales doubling and revenue up 150% year-over-year. LGD engagement rings are attracting consumers, with unit sales up 39% and revenue up 17%, despite a decrease in average spending by 8%.
Positive Signs for Natural Diamond Prices
Natural diamond prices rose 5.6% from April and 0.7% year-over-year in May. Average consumer expenditure on loose natural diamonds remained high at $10,071 per item. Prices for 1-carat rounds increased by 0.7% month-over-month, while 2-carat rounds gained 2.4%, suggesting a potential recovery in prices.
For the fourth consecutive month, total sales increased month-over-month, showing a mid-single-digit rise. Although total sales value lags year-over-year, this trend warrants attention as the holiday season approaches.
Read the full analysis here.