Affluent U.S. consumers reduce jewelry purchase plans

The U.S. jewelry market grew by 5% in 2024, reaching $85.4 billion. However, this year, wealthy consumers are cutting back on their jewelry spending. Signet Jewelers, a leading retailer in the industry, recently reported disappointing earnings. Its sales for fiscal year 2025 fell by 7% to $6.7 billion. This continues a trend of declining revenues for Signet over the past few years. Despite the overall market growth last year, affluent customers are showing less interest in buying jewelry. A study found that the intention to buy jewelry among these consumers dropped from 28% to 22% between late 2022 and early 2023. This means around 1.5 million fewer high-income households are shopping for jewelry compared to the previous year. In contrast, some brands like Pandora saw revenue growth while Signet struggled. The luxury segment also saw mixed results, with some companies like Richemont performing well, while others like LVMH faced slight growth. The jewelry market faces challenges from changing preferences, particularly a rise in popularity for lab-grown diamonds, which are cheaper and seen as more sustainable. Many engaged couples are choosing lab-grown options for their rings, reducing demand for natural diamonds. In addition to these market shifts, consumers are prioritizing experiences over material goods. Many prefer spending on travel and experiences rather than jewelry gifts. Economic uncertainties also make affluent consumers cautious about discretionary spending, further impacting jewelry sales. Experts suggest that the jewelry market may face significant challenges ahead, including increased competition and evolving consumer preferences. Brands will need to adapt to these changes to remain relevant and connect with customers.