After two positive months, jewelry sales in the United States experienced a 1.6% decline in September. The latest data highlights that consumers purchased fewer jewelry items, but the average spending per item rose by 5%. Additionally, inventory levels changed significantly, with retailers reducing the number of units held after several months of increases.
Natural Diamond Jewelry
- Revenue: Decreased by 5.5% in September compared to the previous year.
- Earrings: The steepest decline was in earring sales, which dropped 21% in revenue and 8% in units sold.
- Average Spending: Increased by 1.1% per unit.
- Overall: Despite declines in unit and revenue sales, consumer spending per unit rose, reflecting a shift in consumer behavior towards buying fewer, but more expensive pieces.
Lab-Grown Diamond (LGD) Jewelry
- Revenue and Sales: LGD jewelry saw a 23% increase in revenue and a 33% increase in unit sales in September. However, the average price fell 7% to $1,985.
- Top Categories: Rings and earrings made up the majority of sales, with engagement rings being the top seller. Year to date, engagement rings have generated 23.5% more revenue, though the average price fell slightly by 1.7%.
- Market Dynamics: Retailers continued increasing inventory despite declining prices. Year over year, revenue from loose lab-grown diamonds fell 14.5%, driven by price declines that outpaced the increase in units sold.
Finished Jewelry Sales
- Revenue: Revenue from finished jewelry decreased by 2%, marking the first significant decline since January, when it fell by 5%.
- Unit Sales: Total unit sales dropped 6.5%, affecting nearly all jewelry categories, except tennis bracelets, which saw an 8.5% increase in unit sales.
- Gold Jewelry: Gold jewelry revenue dropped 1.7%, but the average spending per item increased to $1,432.
Loose Diamond Sales
- Natural Diamonds: Revenue from loose natural diamonds showed a teeter-totter trend throughout the year, with a 2% rise in September. The average spending per diamond increased 8% year over year, reaching $10,515, and the average diamond size also grew to 1.41 carats, continuing the trend of consumers purchasing larger stones.
- Lab-Grown Diamonds: Revenue from loose lab-grown diamonds shrank by 14.5%, even as unit sales increased by 6%. This decline was driven by rapidly falling prices, with the average spend per diamond decreasing by 21.5%. Inventory of loose lab-grown diamonds increased by 30% in the past year, while unit sales rose just 9%, pointing towards a potential inventory buildup problem for retailers.
Key Insights
- The natural diamond jewelry market saw a decline in sales but an increase in spending per unit, reflecting changing consumer preferences towards more premium products.
- Lab-grown diamonds experienced significant growth in sales but faced challenges due to rapidly declining prices, which has led to a buildup in inventory.
- Tennis bracelets remain popular, bucking the trend of declining sales in other categories.
- Inventory management is becoming an issue, especially for lab-grown diamonds, as declining revenue and increasing stock may signal unsustainable practices.
These trends suggest shifts in consumer behavior and preferences, with an emphasis on fewer but more valuable purchases and an increased interest in lab-grown diamond products. The industry faces challenges related to inventory and pricing, particularly for lab-grown diamonds, which may lead to more adjustments in the coming months.