US Jewelry Market 2024: Sales Rise 1.4% Despite Market Challenges

The US jewelry market was on a roller coaster ride in 2024. While overall sales rose, key components underperformed. Natural diamonds lost some of their sparkle, but those that did opt for them were willing to dig deep into their pockets and pay more.

That was not the only departure from Econ 101 mainstays. Demand for lab-grown diamonds continued to soar; however, prices sank even lower as consumers regard them as the low-cost option and expect to see prices decline even further.

Total jewelry sales inched up 1.4% in 2024, and unit sales eased down 1.4%. The modest performance was mainly due to declining revenue from natural diamonds.

In recent years, retailers have kept pushing up their gross margins, and in 2024 they climbed to an average of 49.6%.

Memo goods remained at 7% of sales, and inventory levels were unchanged from 2023, indicating that retailers are more actively managing their costs and reducing risks. All these are components of the industry’s realignment.

And the answer to the question on many industry members minds: lab grown held a 14% market share in 2024.

 Total US Jewelry Market Sales Rose 1.4% in 2024

Finished Jewelry Sales Up 2.9% in 2024

US total finished jewelry sales improved in 2024, welcomed news for the challenged sector. In 2024, sales grew 2.9% year over year, compared to a 3.4% decline in 2023.

The sales improvement is expected to outpace the US inflation rate and be in line with growth in GDP.

The rise in sales was stimulated by higher consumer spending per item, which compensated for a decline in the number of units sold. Unit sales softened 1.6% in 2024.

The average jewelry price increase, up 4.5% to $1,090 per item, is the highest in the last five years. The improved price per item is part of a long-term trend of increased expenditure by US consumers. Historically, the “less for more” buying trend happened when consumers felt a need to make their purchases more meaningful.

Holiday and December 2024 Jewelry Sales

Total finished jewelry sales rose 3.4% year over year despite a 3.5% decrease in unit sales. The average price per unit rose 7.2% versus December 2023.

Holiday sales of finished jewelry were robust. In the November-December 2024 period, revenue climbed 3.7% against a 3.2% decline in unit sales.

The top-selling items during the holiday season were chain necklaces selling at an average price of $569, mainly 14k yellow gold. It was followed by gold fashion pendants set with natural diamonds averaging $534.

US Finished Jewelry Sales Trend

Finished Diamond Jewelry Sales Flat

Last year was a tough one for the natural diamond market, with sales of finished diamond jewelry flat. Here too, unit sales declined while the average rose in 2024. Unit sales decreased 3% year over year, and the average price increased 3.3% to $1,981.

Fashion earrings were the top seller, despite a decline in unit sales. An average price of $1,553 was a 6.9% increase compared with 2023.

Bangle bracelets set with diamonds took off last year, with unit sales soaring 12%.

In December, revenue from diamond-set finished jewelry inched up 1.2%, an important change of direction from the declines it suffered in December 2023.

Most importantly, the average price climbed 6% to $1,956 as consumers clearly preferred larger diamonds in their jewelry.

Natural Diamond-Set Finished Jewelry Revenue

Finished LGD Jewelry Sales: Average Expenditure Falls 8%

Lab-grown diamond jewelry unit sales leaped 43% in 2024, resulting in a 31% increase in sales. While impressive, the increases are exhibiting a deceleration compared to 2023, when unit sales rose 50% and revenue surged 38%.

The deceleration trend in consumer demand is an ongoing one. However, one aspect of LGD-set jewelry that does not exhibit a deceleration is price declines. In 2024, the average price of this jewelry category dropped 8.3%, a deeper decrease than the 7.9% fall in 2023.

The most popular LGD-set finished jewelry is stud earrings, accounting for more than a quarter of sales by unit.

During the holiday season, finished LGD jewelry lost market share. This is not unusual, but rather a trend seen every year during the November-December period.

Loose Diamond Prices Trend Down

US jewelry retailers’ total revenue from natural and lab-grown diamonds fell 5% in 2024. The downward trend was evident throughout the year, driven by a few different market pressures.

Retailers’ Loose Natural Diamond Sales Down in 2024

For a third year in a row, loose diamond sales by jewelry retailers declined on a year-over-year basis. However, this is not the deep double-digit drop of 2022 or 2023.

Specialty jewelry retailers keep loose gems on hand for custom work, mainly engagement rings, and used to represent about 20% of their jewelry revenue. That revenue contribution is declining and totaled 18% in 2024.

Total revenue from loose diamond sales was down 4.3% in the past year, and unit sales dropped 6.2%.

As these figures indicate, the average purchase price per unit increased, up 2.1% year over year to $10,104. Behind this trend was a rise in the size of diamonds purchased, up from 1.30 carats in 2023 to an average of 1.39 carats in 2024.

The average retail price per carat stood at $7,274, down 4.5% year over year.

Consumers’ interest in larger diamonds led to a jump in demand for 2-carat diamonds, rising to 10% of demand by units sold, versus 8.5% in 2023. The lower prices no doubt contributed to their rising popularity.

In December, retailers’ revenue from loose diamonds declined 3.5% year over year, while unit sales fell 8.2% year over year. The average price per unit jumped 5%.

In the November-December holiday season, sales declined 4% by value and 7% by units sold. This is disconcerting news, but not as deep a decline as loose diamonds suffered during the 2023 holiday season.

US Loose Natural Diamond Sales Trend

Lab-Grown Diamonds Revenue Sank, Price Kept Eroding

In 2024, revenue from loose lab-grown diamonds fell 7.2% despite an 18.6% increase in units sold. As always, the reason is the seemingly unstoppable decline in prices.

The average price sank 21.8% to $2,443 per unit. The average diamond size was 2.03 carats.

The ongoing price declines are prompting retailers to take two protective measures. The first is insisting on getting more goods on memo. On average, 48% of sold goods were on memo; this compared to 45% in 2023.

The second measure is that of rising gross margins. In 2024, it averaged 68%. Contrary to some reports in the market, gross margins are only increasing. By December they had already reached 70.9% and were not showing any signs of shrinking. This is how retailers are trying to maintain their gross profits.

The accessibility of larger lab-grown diamonds is an important sales driver of consumer demand. In 2024, sales of 2- and 3-carat diamonds accounted for 42% of sales by units.

During the holiday season, retail revenue of loose LG diamonds fell 10% year over year, while unit sales rose 15.8%. Average retail price dropped 22.3% to $2,185, while gross margins reached a record 70.8%.

US Loose LGD Year Over Year Sales Trend Down

The above high-level figures of the US jewelry market in 2024 are just the tip of US jewelry market activity in 2024. Tenoris has more detailed data that can help improve your business through a better understanding of the US jewelry market. Contact us for a demo.

About Tenoris

Tenoris collects retail sales data from a broad representative sample of US jewelry retailers. Tenoris subscribers include retailers, manufacturers, miners, and financial firms. They use this data to study everything from broad market trends to price prediction, assisting them in identifying changing trends and opportunities ahead of their competitors.