2025: The Year Jewelry Industry Faces a Major Transformation
Despite the challenges ahead in 2025, the jewelry industry is cautiously optimistic after surviving the highs and lows of the pandemic. Jewelers are exploring new strategies and markets to maintain growth, while focusing on regaining consumer trust for a brighter future.
The past year has been tough, marked by geopolitical pressures, economic instability, and low consumer confidence, but insiders are still hopeful that the economy will show signs of improvement soon.
Though challenges remain, the industry is starting to see exciting opportunities in emerging markets, stabilization of economies, and fresh business strategies that are inspiring optimism.
With close scrutiny from governments and consumers, the jewelry industry is also diving deep into issues of sustainability, naming conventions, and responsible marketing, pushing the sector to evolve.
Diamonds: A Glimmer of Hope in a Struggling Market
The diamond industry is showing signs of recovery after a challenging 2024. According to Yoram Dvash, President of the World Federation of Diamond Bourses (WFDB), the market is improving, and we can expect to see recovery by Q2 of 2025.
After overproduction issues in 2024 caused pricing and inventory problems, supply is now stabilizing, with certain products even in short supply. Indian manufacturers reduced production by 40-50% last year, helping to correct the oversupply.
Dvash emphasizes that controlling the supply of rough diamonds is key to ensuring a positive outlook for 2025. If mining companies and producing countries continue to regulate supply, this will have a positive impact.
The Key to Diamond Market Recovery: China?
A lot hinges on the recovery of the Chinese market, though industry experts agree it will take longer than expected. Paul Rowley, Executive Vice President of De Beers Group, points out that China's low marriage rates have had a profound impact on the wedding industry since the pandemic.
To reignite interest in natural diamonds, various initiatives have been launched in China, including collaborative video marketing campaigns with the Shanghai Diamond Exchange (SDE). These efforts are expected to spark renewed demand, especially from younger consumers.
With China's demand slowing, attention is shifting to other promising markets.
India's booming middle class has sparked a surge in demand for diamonds, making it a formidable competitor. Rowley notes that since the pandemic, India’s demand for natural diamonds has increased by 30-40%, and the growth potential in the country is immense.
India is also gradually embracing diamonds, traditionally focused more on gold jewelry, creating a new market for the gemstone. As the Indian market grows, De Beers is seeing recovery in the U.S. as well. Although Southeast Asia is showing promise, Rowley admits these regions can’t completely make up for the loss in China.
“Until China recovers, we are actively looking for alternative markets to keep momentum going,” says Rowley.
A Steady Recovery Ahead
For Dvash, the biggest hurdle for the diamond industry is that younger generations are not as enthusiastic about natural diamonds as their predecessors.
“The new generation hasn’t been exposed to the traditional marketing campaigns that associate diamonds with eternal love. We hope the industry can create campaigns that support this concept and gradually shift consumer sentiment,” Dvash explains.
He suggests that sustained marketing efforts, at least five years long, are necessary to significantly alter consumer attitudes toward natural diamonds.
Economic and geopolitical stabilization is expected to benefit the diamond market as well. Dvash is optimistic that the new U.S. government will bring peace to regions like Ukraine and the Middle East, calming global markets and paving the way for a recovery in the diamond industry.
Rowley adds that inventory restocking is already bringing positive signs of recovery, although the journey will be gradual. As consumer demand for diamonds rises, the industry will gradually regain stability and strength.
Pearls: A Bright Future
The pearl industry is also looking to the future with optimism. As businesses explore new markets and consumer demographics, demand is expected to continue soaring.
The Japan Pearl Exporters Association (JPEA) is focused on diversifying its Akoya pearl market, with strong demand from both China and emerging markets like Europe and India. JPEA Chairman Jyoji Kaku notes that buyers in these regions are willing to pay a premium for Japanese Akoya pearls, appreciating their consistency and stable supply.
Jewelmer, a leading South Sea pearl specialist, is also seeing steady growth in the U.S. and other global markets. CEO Jacques Christophe Branellec highlights the increasing popularity of South Sea pearls, especially in younger consumer groups in Asia, who are drawn to the sustainability of these pearls.
Paspaley Pearling Co. is confident in the future of pearls, with plans to expand its international presence. The company is working on building its reputation in the U.S. market, as well as continuing to strengthen its Australian base. "We are ready to return to the international market," says Executive Director Peter Bracher.
Colorful Gemstones: High Demand but Limited Supply
The colored gemstone sector is also bracing for a shining year, with some varieties facing shortages. High-end colored gemstones are especially in demand, while mid-range gems are experiencing pressure from market softness.
Charles Abouchar, Chairman of CIBJO’s Colored Gemstones Commission, notes that while high-end gems are hard to source, the mid-range market is stagnating. However, suppliers are finding new opportunities by collaborating with partners in Germany and India, seeking new ways to boost their income.
Abouchar warns that new types of gemstone treatments that are undetectable are adding uncertainty to the market, making it harder for buyers to trust the authenticity of gemstones.
Industry Terminology: The Importance of Consumer Confidence
The jewelry industry’s foundation lies in consumer trust, which is why industry professionals are working hard to maintain credibility. At the 2024 CIBJO Conference in Shanghai, key topics included the urgency of sustainability, standardization of terminology, and full disclosure.
CIBJO’s Supply Chain Naming Committee is working to establish standardized terminology for the jewelry supply chain, ensuring that consumers can trust the claims made by the industry. This effort is expected to protect consumers and improve transparency.
Purvi Shah, Chair of CIBJO’s Supply Chain Committee, stresses that as consumers become more informed, the industry must be transparent to maintain trust. “If our claims aren’t credible, we risk losing consumer confidence,” she says.
By adhering to these evolving standards and embracing the challenges of 2025, the jewelry industry will be able to build a more sustainable and transparent future.