Luxury jewelry includes precious metals and stones like gold, silver, platinum, diamonds and others that are priced at a premium. Luxury jewelry offers aesthetic beauty, timeless design, exclusivity and status appeal which drives the demand among upper middle class consumers. Increasing disposable incomes in emerging markets and rising affluence have led to growing demand for luxury products including luxury jewelry. The global luxury jewelry Market is estimated to be valued at US$ 68.82 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The opportunity of rising consumer affluence and festive seasons is expected to drive the luxury jewelry market during the forecast period. Emerging markets like China and India are witnessing rising middle class population with increasing disposable incomes. This has led to growing demand for luxury products as symbols of status and success. Additionally, festive seasons like Diwali, Christmas and weddings in these regions drive significant sales of gold and diamond jewelry. As consumer confidence and spending power rises in developing nations, the luxury jewelry market is expected to witness lucrative growth. The manufacturers are anticipated to focus on expanding in Asia Pacific and capitalize on the festive seasons to boost sales. This presents a major market opportunity for players in the luxury jewelry market over the forecast period.
Porter’s Analysis
Threat of new entrants: The luxury jewelry market has high capital requirements for setup and production. Established brands have strong brand recognition and customer loyalty which poses barriers for new entrants.
Bargaining power of buyers: Individual buyers have moderate bargaining power due to the availability of a wide variety of luxury jewelry brands and designs to choose from.
Bargaining power of suppliers: A few key suppliers exist for precious metals and gemstones used in luxury jewelry making. This grants them some bargaining power over manufacturers.
Threat of new substitutes: No cost-effective substitutes are available for luxury jewelry made from precious materials.
Competitive rivalry: Intense competition exists among major luxury jewelry brands to attract customers and increase market share.
SWOT Analysis
Strength: Wide variety of exquisite designs and use of high-quality precious materials. Strong brand image and recognition of major players.
Weakness: Vulnerable to economic downturns as luxury purchases are discretionary. High manufacturing costs.
Opportunity: Expanding high-net-worth customer base globally especially in emerging markets. Growth of online luxury jewelry retail platforms.
Threats: Rising raw material prices. Counterfeit products eating into sales of genuine luxury jewelry brands.
Key Takeaways
The global Luxury Jewelry Market Growth is expected to witness high growth over the forecast period of 2023 to 2030. Factors such as rising affluence, growing millennial population and expanding middle class in developing regions will drive market expansion.
Regional analysis: The Asia Pacific luxury jewelry market accounts for the largest share currently due to high demand from China, India and other southeast Asian nations. Emerging middle class consumers are inclined towards luxury purchases in the region. North America and Europe continue to be the dominant regional markets with high spending capacities.
Key players: Key players operating in the luxury jewelry market are Pfizer Inc.,Merck & Co., Inc.,GlaxoSmithKline plc,Novartis AG,Sanofi S.A.,Johnson & Johnson,Abbott Laboratories,Eli Lilly and Company,AstraZeneca plc,Bayer AG,Bristol-Myers Squibb Company,Roche Holding AG,Teva Pharmaceutical Industries Ltd.,Mylan N.V.,Allergan plc. The market is moderately concentrated.
For more insights, read- https://www.newsanalyticspro.com/luxury-jewelry-market-trends-size-and-share-analysis/
