After a stellar performance in 2023, China’s pearl industry experienced a slowdown in the first half of 2024 due to weaker market demand. But rising interest in high-quality pearls is painting a hopeful picture for the future of this industry.
Market Cooling Down—But Demand for Quality Stays Strong
Pearl companies in China acknowledge that the market is not immune to global economic headwinds. Following strong demand last year, high pearl prices have made buyers more cautious in 2024. Shen Ronggen, General Manager of Zhejiang OSM Pearl Jewelry Co., Ltd., remarked, "The pearl market was exceptionally hot last year, with growth continuing until late in the year. Markets always have cycles, and it’s natural for them to cool down."
Despite the dip in sales, Shen emphasized that the pearl market has matured significantly over recent years and still holds a strong position even amid challenges. "A starved camel is still bigger than a horse," he noted, pointing out that even a downturn can’t diminish the market's size and strength.
Live Streaming and Young Buyers Drive Steady Demand
Data from the China Jewelry Industry Association shows that pearl jewelry sales in China surged by 46% in 2023 to RMB 35 billion (USD 4.85 billion), accounting for 4% of the nation’s total jewelry sales. Star power and live-streaming sales are major drivers of consumer interest in pearls. Leaf Xiaobo, Chairman of Yuanmei Pearl, shared that 80% of the company's sales in 2024 came from live-streaming channels.
"Consumers are learning about pearls on social media and purchasing them directly through live streams. It’s incredibly convenient for them," Xiaobo said.
Freshwater Pearls Shine Bright for Budget-Conscious Buyers
Demand for all types of pearls remains strong, particularly for freshwater pearls, according to Zhou Dingxiang, Chairman of Zhejiang Minghuang Jewelry Co., Ltd. Freshwater pearls are gaining popularity because of their improved quality, and they now offer similar luster and roundness to saltwater pearls—but at a more affordable price. Small pearls, especially those 3 to 4 mm in size, are becoming the favorite choice among younger buyers.
Minghuang Jewelry has been specializing in freshwater pearls for over 30 years, focusing on farming, manufacturing, wholesaling, and retailing a variety of pearl jewelry. The company's innovative nucleation techniques have produced high-quality freshwater pearls such as "White Shengli" and "Purple Linglong"—a collection renowned as the Chinese version of Tahitian pearls.
Younger Buyers Fuel High-Quality Pearl Jewelry Market
Chinese pearl companies are seeing a younger trend in consumers, with buyers now prioritizing intricate craftsmanship and premium designs. Wang Lin, Owner of Lihui Jewelry, observed, "Today's consumers have a deeper understanding of pearls and pay more attention to the craftsmanship involved." High-quality, uniquely designed pearl jewelry, like Lihui's original creations for the Oldking Jewels brand, are particularly appealing to these new buyers.
Founder and designer Tian Renyu of Heidi Jewelry echoed this sentiment, pointing out that younger buyers care about pearl quality more than ever. "To meet this demand, we launched our 'Dream Rainbow' high-end freshwater pearl collection, showcasing pearls with natural luster and a minimalist design."
Global Ambitions and the Role of Innovation
Zhuji, located in Zhejiang province, produces 70% of the world's freshwater pearls, generating sales of RMB 50 billion (USD 6.89 billion) in 2023—an impressive 80% of China’s total pearl sales. Zhuji aims to strengthen its position as China’s "Pearl Capital" through innovations in pearl farming, digital supply chain management, and live-streaming sales.
"To further develop China's pearl industry, it's essential to adopt advanced pearl farming techniques, like genetic breeding, to improve pearl quality, particularly color and luster," noted He Tiyuan, Secretary-General of the Zhejiang Pearl Industry Association. He also stressed the importance of expanding e-commerce and live-streaming channels to boost sales.
Chairman of Zhejiang Ruanshi Pearl Co., Ltd., Ruan Tiejun, mentioned that major e-commerce platforms like Taobao, Alibaba, and Douyin have established live-streaming bases in Zhuji International Trade Center, leading to encouraging pearl jewelry sales through these promotional activities.
He emphasized the need to take China's freshwater pearl industry global, particularly focusing on smaller and irregular-shaped pearls that appeal to Western buyers who seek unique, personalized jewelry styles. To increase China's presence in the global pearl market, the association is collaborating with jewelry show organizers to ensure Chinese pearl companies participate in major domestic and international jewelry exhibitions in 2024, including in Hong Kong, Kunming, Beijing, Shenzhen, and Japan.
Will Quality Pearls Lead the Next Luxury Wave?
China's pearl industry is determined to move forward, driven by innovation, expanding sales channels, and rising global ambitions. With growing demand for high-quality pearls among young consumers and a focus on unique designs, China’s pearl industry is poised for a bright future—could high-quality pearls be the next big thing in luxury jewelry?