Jewelry sales in the U.S. held steady in August following significant gains in July. According to diamond analyst Edahn Golan, while consumers bought more items, they spent 1% less per piece compared to August 2023. This trend, coupled with rising inventories, especially in lab-grown diamonds, raises some concerns for the industry. Nevertheless, there are positive signs, particularly for natural diamond jewelry.
Natural Diamond Jewelry: A Mixed Bag
In August, sales of natural diamond jewelry dropped by 3% year-over-year, with average spending per item also down by 3.6%. Despite this, the broader jewelry market saw a 2.3% revenue increase, thanks to a slight uptick in the number of items sold (1.3%) and a 1% rise in average spending per piece. Rings continued to dominate sales, with fashion rings making up 10% of all finished jewelry sold, generating 12.5% of overall revenue.
Total US Jewelry Sales YoY
Although unit sales of natural diamond jewelry increased by 1%, revenue from those sales fell 2%, suggesting that consumers are buying more but spending less per item. However, there is a silver lining: in the first eight months of 2024, while natural diamond jewelry sales remained flat, average expenditure per item increased by 2.4%.
Lab-Grown Diamonds: Growth Despite Falling Prices
The lab-grown diamond (LGD) market saw continued growth, with sales of finished LGD jewelry up by 10% in August, even as the average price fell by 16.7%. Engagement rings featuring lab-grown diamonds were especially popular, making up nearly 19% of all units sold and generating a 30% increase in revenue. These rings were priced around $3,000 on average, making them an attractive option for consumers.
Loose Lab-Grown Diamond Inventory & Sales
However, loose lab-grown diamonds face challenges. Unit sales rose by 14.6% year-over-year, but the average price per item dropped by 22%, resulting in a 10% decline in revenue. Inventory levels for lab-grown diamonds are also swelling as retailers struggle to balance sales with rising stock.
Optimism for Natural Diamonds
Despite some challenges, there are reasons for optimism in the natural diamond sector. Consumers are gravitating towards larger stones, with the average diamond size increasing from 1.31 carats in August 2023 to 1.40 carats in August 2024. This shift suggests that while fewer units may be sold, those who are purchasing are opting for higher-value items.
US Loose Natural Diamonds Sales Trend
Additionally, loose natural diamonds saw a significant month-over-month improvement. Revenue increased by 8.5% from July, with a 4% rise in the number of units sold. This demonstrates that, although demand for natural diamonds can fluctuate, it remains steady and resilient over time.
By Edahn Golan
