In 2024, China’s gemstone and jewelry industry faced a myriad of challenges—from uncertain economic conditions to fluctuating gold prices and wavering consumer confidence. Yet, despite these struggles, demand for high-quality jewelry, particularly those combining modern aesthetics with cultural depth, is surging, with expectations that 2025 will bring growth.
According to Chen Yu, CEO of the China Gem & Jewelry Trading Center, retail sales for gold, silver, and jewelry in China from January to September 2024 dropped by 3.1%, totaling 245.4 billion RMB. While gold consumption remained a dominant force, its market share has begun to decline, as gold prices continue to climb. Meanwhile, the demand for emeralds, jade, and pearls has seen significant growth, and colored gemstones are becoming increasingly popular among buyers, with a marked shift toward affordable options.
Despite these trends, Chen predicts that 2025 will still see gold as the primary jewelry product in China, although its market share may slightly dip. The market is also witnessing a divergence between mass-market jewelry and high-end luxury items, with mid-tier products expected to experience slower sales. To navigate these challenges, jewelry brands are focusing on developing more specialized products and designs to cater to both ends of the market.
A Shift Towards Personalization and Cultural Designs
The growing interest in personalized jewelry is driven by an increasing desire among Chinese consumers, particularly younger buyers, to own pieces that reflect their unique identities. Jewelry designers like Ouyang Huixin, Chairperson of Guose Jewelry, are embracing this shift by merging traditional Chinese elements with modern designs, capturing the essence of both heritage and contemporary style.
Similarly, Ao Li from Cuilv Jewelry has successfully implemented this idea with her “self-developed” collection, blending traditional gold-making techniques with colorful enamel and diamonds, offering consumers more than just a product, but a piece of cultural art.
The Pearl Market’s Bright Future
Pearls, particularly freshwater pearls, are making a notable comeback. According to Tu Xingcai, President of the Shenzhen Pearl Industry Association, the market for pearls in China is expected to keep growing, driven by rising consumer appreciation for pearl jewelry. With more high-end consumers and younger buyers increasingly valuing the quality and design of pearls, the outlook for premium freshwater and saltwater pearls remains strong.
Challenges and Opportunities Ahead
However, there are challenges. For example, China’s relatively high import taxes on gemstones have reduced the competitiveness of imported stones. The country has also experienced significant fluctuations in gemstone imports, which have led to price instability in the supply chain.
Despite these challenges, industry leaders believe that focusing on quality, sustainability, and responsible sourcing, while expanding into international markets through online platforms, will help Chinese jewelry companies stay resilient. As the market adapts to changing consumer needs and economic conditions, these strategic efforts are crucial for long-term success.