Jewelry purchases are on the rise in the U.S., with consumers ramping up their spending, according to diamond analyst Edahn Golan. This renewed interest drove a 7.4% increase in revenue compared to last year, with a 3.7% boost in the average amount spent per item.
The growth in sales is promising as the holiday season nears, even as demand for loose diamonds – both natural and lab-grown – has softened. Inventory levels rose from September due to seasonal shifts, yet year-over-year figures show retailers keeping stock under tight control, according to the analysis.
Total US Jewelry Sales Soared in October
Finished Jewelry Sales Surge, Keeping Annual Revenue Positive
October brought a strong recovery in finished jewelry sales, sustaining a positive year-to-date growth trajectory. According to Golan, revenue from finished jewelry increased by 9.9%, with an overall 2.5% growth so far this year.
Total units sold climbed by 5.9% over last year, with nearly all jewelry categories showing gains. Tennis bracelets were a standout with a 38.5% sales increase, while anniversary rings experienced a slight dip in popularity.
Natural Diamond Jewelry Revenue Grows by 4.7%
Sales of finished jewelry featuring natural diamonds rebounded in October, showing a 4.7% year-over-year revenue rise. Each category of pre-set natural diamond jewelry saw growth, with bracelets leading the way with a 16% increase, according to the analysis. Some ring categories, like wedding sets and anniversary rings, saw modest declines.
Lab-Grown Diamond Jewelry Sees a 33% Year-to-Date Increase
Lab-grown diamond (LGD) jewelry sales continued their upward trend, rising by 46% in October and reaching a 33% increase for the year so far. Unit sales grew sharply, although the average price per item dropped by 8.5%, dampening revenue slightly.
While rings and earrings still hold the largest share of sales by volume, bracelets have shown growing popularity, with demand for bangles surging by 200%, according to Golan.
Loose Diamond Sales See a Seasonal Uptick in Inventory
Inventory levels for loose diamonds increased in October as retailers prepared for the holiday rush. Lab-grown diamonds gained a larger share of stock, partly due to a rise in consignment options from vendors. Consumers remained willing to spend more on loose natural diamonds, while interest in lab-grown options saw a decrease.
Preference for Larger Natural Diamonds Keeps Prices Firm
Loose natural diamond sales showed a slight 1.8% dip year-over-year, with a 4.7% decline in revenue for the year to date. Despite this, consumers are favoring larger stones, pushing the average price up by 3.4% to $10,121. Natural diamonds continued to hold a strong market share, making up 75% of revenue versus lab-grown alternatives.
US Loose Natural Diamond Sales Trend
Steady Revenue for Lab-Grown Diamonds
For loose lab-grown diamonds, two trends persisted: unit sales climbed by 24% year-over-year, while the average price per diamond continued to fall, down by 19.5%. This balance left revenue largely stable, with consumers showing a notable shift from 2-carat round cuts to the increasingly popular 2-carat oval cuts.
For the full article by Edahn Golan, click here
