The jewelry industry in 2024 demonstrated remarkable resilience and adaptability despite facing significant headwinds, including China’s economic slowdown, geopolitical instability, and shifting consumer preferences. While the year began on a strong note, challenges mounted, affecting the trade of gemstones and jewelry globally.
A Year of Trials and Recovery
For many in the industry, 2024 was a year marked by both trials and recovery. Early signs of rebound emerged as consumer demand for diamond jewelry stabilized in the U.S., while India’s resumption of diamond imports after a temporary halt in 2023 offered a promising start.
De Beers’ January sales cycle reflected this optimism, buoyed by steady U.S. demand and a stable holiday season in 2023. Similarly, the National Retail Federation (NRF) reported steady growth in U.S. retail sales in early 2024, driven by a resilient labor market. Hong Kong’s jewelry sector also enjoyed double-digit growth in January, thanks to economic recovery and a surge in tourism.
Mounting Challenges Mid-Year
However, cracks began to appear as China’s once-reliable market faltered. Rising gold prices, macroeconomic instability, and geopolitical tensions led to supply chain disruptions and mounting diamond inventories. The World Gold Council (WGC) attributed weak jewelry demand in the first half of the year to high gold prices and subdued consumer sentiment.
By October 2024, gold prices had surged to an all-time high of $2,736.45 per ounce, up 40% from the previous year. Global gold jewelry demand fell 19% year-on-year, with China experiencing the steepest decline at 35%, followed by India at 17%.
Hong Kong’s jewelry sales saw a 12.8% decline in the first half of 2024, while Chinese jewelry sales fell 7.8% year-on-year in September. For the first three quarters, China’s jewelry sales dropped 3.1%, reflecting weak domestic demand.
The diamond sector also faced setbacks, with De Beers reporting a 20% decline in rough diamond sales by mid-year. To address oversupply, De Beers merged its August and October sales events.
Key Industry Trends
Shifting Consumer Preferences
- Cultured Diamonds on the Rise: The growing popularity of lab-grown diamonds continued to challenge natural diamond sales. Cultured diamonds are no longer limited to wedding jewelry but have expanded into other categories. Prices for lab-grown diamonds fell sharply, further fueling demand.
- Colored Gemstones Gaining Ground: As diamond demand waned, interest in rare colored gemstones increased. The International Colored Gemstone Association (ICA) noted strong demand in Asian markets, including Taiwan, Korea, and Singapore.
Design Innovations and Sustainability
Classic designs such as tennis bracelets, hoop earrings, and minimalist gold jewelry remained bestsellers. High gold prices also spurred demand for lightweight and understated designs. Platinum jewelry and pieces featuring lab-grown diamonds and colored gemstones gained traction as alternatives to traditional gold and diamond products.
Customization and bold, expressive designs gained popularity among younger buyers. Experts predict that Gen Z’s purchasing power will surpass that of millennials within the next decade, driving demand for non-traditional, asymmetrical, and colorful designs.
Optimism for 2025
Despite the challenges, industry leaders remain cautiously optimistic about recovery. Yoram Dvash, president of the World Federation of Diamond Bourses (WFDB), anticipates gradual improvement, supported by De Beers’ supply reductions and industry-wide marketing campaigns. U.S. holiday demand and promotions by the Natural Diamond Council (NDC) are expected to drive a stronger finish to the year.
Damien Cody, president of the ICA, predicts better conditions in 2025 as economic pressures ease. He believes the U.S. election and improving fiscal outlook will create a favorable environment for jewelry retail, particularly for colored gemstones.
Adapting to a Changing Market
Hong Kong manufacturers are focusing on technology, such as 3D printing and AI, to remain competitive internationally. Many are expanding into emerging markets in Southeast Asia and the Middle East, where demand for high-end jewelry is rising.
As consumer preferences evolve, the jewelry industry’s commitment to innovation and sustainability is expected to unlock new opportunities in 2025 and beyond.