After last year's boom, China's pearl market has slowed in the first half of 2024. Despite the dip, there’s hope on the horizon as economic recovery and rising demand for high-quality pearls might just pave the way for future growth.
Why Is China’s Pearl Market Slowing Down?
At the 2024 Zhuji International Jewelry (Pearl) Expo, pearl traders revealed that the global economic downturn has affected China's pearl market, while sky-high pearl prices have made buyers more cautious. The event, held during the World Pearl Congress in Shanxia Lake, showcased how the current economy is impacting the industry.
"Last year was especially hot for pearls, with growth sustained until almost the end of the year. But market cycles inevitably cool down," said Shen Ronggen, General Manager of Zhejiang OSM Pearl Jewelry Co., Ltd. "Even though sales have dipped since the Mother's Day period in May, the pearl industry is still standing strong—‘a starved camel is bigger than a horse,’ after all!"
Young Consumers Are Pushing for Quality Over Quantity
The market is shifting towards quality-driven demand, especially among younger buyers. Founder and designer of Heidi Jewelry, Tian Renyu, explained, "Consumers are now valuing the quality of pearls more. To meet this demand, we've launched the 'Dream Rainbow' high-end freshwater pearl jewelry line, showcasing the natural luster of pearls with a classic, minimal design." The improvements in pearl farming have significantly boosted the quality of freshwater pearls, catering to the evolving preferences of discerning buyers.
Innovation Is the Key to Growth
Industry experts attending the World Pearl Congress’ roundtable highlighted that innovative approaches like live streaming, digitalizing the supply chain, and advancements in pearl farming could lead to further growth for China’s freshwater pearl sector.
Chairman of Zhejiang Ruanshi Pearl Co., Ltd., Ruan Tiejun, noted that platforms like Taobao, Alibaba, and Douyin have established live-streaming bases at the Zhuji International Trade Center, resulting in encouraging sales numbers for pearl jewelry through various promotional activities.
Zhuji—The Pearl Capital with Big Ambitions
Zhuji city in Zhejiang province produces 70% of the world's freshwater pearls, with sales exceeding 50 billion yuan (approximately 689 million USD) in 2023—accounting for 80% of China’s total pearl sales. He Tiyuan, Secretary-General of the Zhejiang Pearl Industry Association, stated that Zhuji aims to further cement its status as "The Pearl Capital of China" by strengthening pearl farming, processing, manufacturing, wholesaling, research, and retailing through live-streaming platforms.
"The Chinese freshwater pearl industry must expand to international markets—this is a huge opportunity," He said, pointing out that small pearls and irregular-shaped pearls are particularly popular. "Irregular-shaped pearls, in particular, appeal to Western buyers looking for unique, personalized styles."
The Road Ahead—Economic Recovery Offers Hope
Economic recovery is expected to support future growth for the pearl market. Government data shows that China's GDP grew by 5.3% year-on-year in Q1 2024, up from 5.2% in Q4 2023. As the economy bounces back, so too might the allure of pearls.
Will Quality Pearls Make a Comeback?
While the market is experiencing a cooling phase, the demand for high-quality pearls—especially among younger, fashion-forward buyers—could drive a comeback. With innovation in sales and a focus on international markets, China’s pearl industry is gearing up for a bright future. Could high-quality, unique pearls be the next big thing in luxury?