Even in the present worrying economic climate, the gems-and-jewelry market is thriving, and it is expected to continue to grow in the coming years. However, the market is also having to adapt to changes in consumer behavior and current trends. Here are the forecasted growth and trends for 2021 and beyond.
While traditional gemstones like diamonds continue to be popular, consumers are starting to choose gems with more color. For instance, aquamarine, which is a soft pale blue stone from the beryl family, has become extremely popular in recent times. That was largely helped by Harry and Meghan’s marriage in 2018. Meghan Markle wore an aquamarine engagement ring that once belonged to Princess Diana.
With the royal seal of approval, aquamarine remains on-trend in 2021. But it is not only popular for rings. Aquamarine is also becoming a stylish choice of gemstone for other items of jewelry like earrings, pendants, and necklaces.
In particular, a conflict-free aquamarine necklace is becoming a popular jewelry choice for 2021. Indeed, conflict-free jewelry of all kinds is becoming a popular trend and seeing major growth, as more and more people want to act responsibly in their jewelry purchases. Non-ethical jewelry can finance civil wars, be responsible for unsafe working conditions, and create unsound environmental practices. So, it is no wonder people are wanting to stay away from buying unethical gemstones.
Another emerging trend is keeping the number of jewelry pieces you wear to a minimum. After the recent trend of going overboard with chunky bracelets and layered necklaces, people are wanting to return to a more minimalist approach, such as wearing single-stoned earrings, pendants, and rings.
Demand for cross-cultural jewelry is increasing too. In 2021, wearing jewelry pieces inspired by Italian and Egyptian cultures is all the rage.
As for gemstone colors, other than aquamarine, shades of yellow and grey are set to be the big thing in 2021. That is largely due to Pantone announcing their colors of the year: Ultimate Grey and Illuminating, which is a beautifully-rich yellow. Gemstones for the year are therefore expected to be yellow sapphires, yellow tourmaline, grey tourmaline, and grey spinel.
Gemstone and Jewelry Market Growth
According to the latest figures from Mordor Intelligence, the global gems and jewelry market is predicted to register a CAGR of 5.5% between 2020 and 2025. And according to Market Watch, the global market is projected to reach around $226 million (USD) by 2026.
The Asia-Pacific region is becoming the fastest-growing market. That is largely due to consumer preferences changing to adopt western lifestyles. Customers in the Asia-Pacific area want new designs and varieties of jewelry, which means international brands are able to fulfill their requests better than local companies.
However, that does not mean local companies are not growing as well. An increase in per capita income in places like India is also driving increased sales, particularly for high-end luxury jewelry pieces.
Key players in the gemstone and jewelry market are focusing more on online distribution channels for marketing and branding products. In turn, that means the market is becoming more competitive.
While global leading players like Buccellati, LVMH, and Richemont are still leading the way in the gemstone and jewelry market, competition from places like India and China is beginning to become fierce. The key western brands are embarking on new and innovative product development fused with the latest technologies to try and stay a step ahead.