The Luxury Jewelry Market is Estimated To Witness High Growth Owing To Trends of Increasing Disposable Income

The luxury jewelry market is estimated to be valued at US$ 68.82 Bn in 2023 and is expected to exhibit a CAGR of 7.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Luxury jewelry products including earrings, necklaces, rings, bracelets made from precious metals and gemstones. Luxury jewelry provides aesthetic value and enhances style. Rising fashion consciousness among consumers and increasing disposable income drive the demand for luxury jewelry products.

Market key trends:
Increasing disposable income: The rise in incomes of people, especially in developing countries like China, India and Brazil has increased spending on luxury products. As per World Bank data, the global middle class population with discretionary spending power grew significantly over the past decade. Middle-income groups are the prime customers of luxury jewelry which is boosting market growth. Further, rising affluence is translating to greater expenditure on high-end luxury gifts as well as self-purchases of fine jewelry. This trend of increasing disposable income is expected to continue fuelling demand for luxury jewelry market during the forecast period.

Porter’s Analysis
Threat of new entrants: The luxury jewelry market has low-moderate threat of new entrants due to high initial capital investment required to build brand equity and establish distribution channels. However, high innovation from new startups pose threat to existing players.

Bargaining power of buyers: Buyers has moderate bargaining power due to wide options available from various luxury jewelry brands. However, strong brand loyalty and premiumization keep buyers attached to premium brands.

Bargaining power of suppliers: Suppliers of precious metals and gemstones has high bargaining power due to scarcity of natural resources used in jewelry manufacturing. This makes supplies indispensable for luxury jewelry production.

Threat of new substitutes: Minimal threat from new substitutes exists as luxury jewelry caters to customer's emotion and status symbol which are difficult to substitute.

Competitive rivalry: Industry has high competitive rivalry among established premium brands to maximize market share through continuous innovation in designs and use of latest technologies.

SWOT Analysis
Strength: Large global presence, strong brand image, extensive distribution channels and marketing expertise of players like Gucciogucci and Tiffany.
Weakness: High dependence on economic cycles and discretionary spending, vulnerability to geopolitical tensions impacting supply chains.
Opportunity: Growing middle class In developing nations, rising demand for personalized luxury experience from millennial population.
Threats: Changing consumer preferences towards sustainable products, trade disputes impacting sourcing and sales.

Key Takeaways
The Global Luxury Jewelry Market Size is expected to witness high growth, exhibiting CAGR of 7.1% over the forecast period, due to increasing spending power, premiumization trends and gifts on special occasions. The Asia Pacific region is expected to dominate the luxury jewelry market owing to rising affluence, western influence on lifestyles and increasing demand from Chinese weddings and festivals.

North America also holds significant share in the luxury jewelry owing to high disposable incomes and established culture of inheriting and gifting luxury jewelry as family heirlooms. Europe constitutes sizable demand for luxury jewelry, especially in Italy, owing to presence of major luxury brands and strong cultural preference for precious adornments.

Key players operating in the luxury jewelry market are Gucciogucci S.P.A., Harry Winston, Inc., Societe Cartier, Tiffany & Co., Compagnie Financiere Richemont SA, Buccellati Holding Italia SpA, Graff Diamonds Corporation, Bulgari S.p.A, K. Mikimoto & Co., Ltd., and Chopard International SA. Major players are focused on diversifying into high-end watches and accessories segments to leverage established distribution networks and brand equity.

Read more: https://www.dailyprbulletin.com/luxury-jewelry-market-insights-trends/