In a recent analysis published by trend analytics company Tenoris, industry analyst Edahn Golan analyzes the performance of the US jewelry market in 2023.
According to Golan, the market fell 5.8% in 2023. Despite a modest 0.3% increase in holiday sales, the overall year witnessed a continuation of the downward sales trend. Several factors contributed to the 2023 sales decline, including the lingering effects of exceptional COVID-driven demand in the first half of the year, consumer fatigue, increased travel, and economic uncertainties.
Economic concerns prompted a shift towards the trend of obtaining more value with fewer jewelry items, reflected in an average expenditure increase of 1.6% during the 2023 holiday season compared to 2022.
In December, US specialty jewelers experienced nearly stagnant sales, with a marginal 0.1% increase, emphasizing the industry’s shift towards a ‘less for more’ approach. Finished jewelry sales in December displayed mixed results, with a 1.1% increase overall, but a decline in bridal sales by 11.2%.
Throughout 2023, finished jewelry sales decreased both in value (3.9%) and units sold (4%), with fashion jewelry and bridal categories contributing to the decline. Diamond jewelry showed more resilience, with a 2.8% revenue decrease and a 3.5% drop in unit sales. Natural diamonds faced a decline of 5.9% in units and 4.8% in retail value, while lab-grown diamond sales soared by 40.6% in value and 56.2% in units.
Golan moves on to discuss “key issues” from 2023 that are worth following in 2024, including the growth potential of the middle market, the saturation of lab-grown diamond products across various categories, the sustained popularity of yellow gold, and the continued consumer demand for natural diamonds.
Notable trends include the stability in the $1,500-$5,000 price range, the increasing popularity of lab-grown diamonds in the lower price points, the resilience of yellow gold sales, and the evolving dynamics of loose lab-grown diamond sales, marked by slowing consumer spending and retailers protecting margins.
Read the full analysis here.
