Gemstone Market

Gemstone Market Outlook

As per newly released data by Future Market Insights (FMI), the gemstone market is estimated at US$ 32.38 billion in 2023 and is likely to reach US$ 55.96 billion by 2033. The market is expected to exhibit a CAGR of 5.6% from 2023 to 2033. The gemstone market holds 50% of the share in the overall gems and jewelry market.

The gemstone market has experienced steady growth in recent years. One of the primary drivers of the market is the increasing demand for luxury goods among consumers across the world. As more people seek out high-end products, the demand for high-quality gemstones has risen. The market provides consumers with a variety of options, from traditional diamond jewelry to colorful birthstone pieces.

A growing interest in colored gemstones and crystals has also contributed to market growth. In particular, emeralds, rubies, and sapphires have seen increased demand lately as consumers seek out unique and eye-catching pieces of jewelry. This trend has opened up new opportunities for gemstone producers and retailers. Diamonds are expensive and sought-after gemstones in the world, making diamond jewelry a mainstay of the market.

Technological advancements have also played a role in the gemstone market growth. New technologies have made it easier and more cost-effective for producers to develop high-quality gemstones that meet the demands of consumers. Technologies like advanced imaging techniques as well as precision cutting and polishing methods have also helped the efficiency of the supply chain. This made it possible for manufacturers to advertise their products more easily and reasonably.

The growing popularity of lab-grown diamonds and other synthetic gemstones presents opportunities for producers to tap into new markets and offer consumers more affordable options. Additionally, as consumers become more environmentally conscious, there is a growing demand for ethically sourced gemstones.

How The Market Progressed in 2022?

Future Market Insights predict a comparison and review analysis of the dynamics of the gemstones market, which is principally subjected to an array of industry factors along with a few definite influences concerning viewpoints that support industry innovation.

New advances that have taken place in the market include the development of certain factors such as fashion designers focusing on developing innovative jewelry products, as well as manufacturers becoming vertically integrated involved in emerging gemstones as well as jewelry which, are contributing to the growth of the gemstones market.

According to FMI analysis, the variation between the BPS values observed in the gemstones market in H1, 2022 - Outlook over H1, 2022 Projected reflects the growth of 60 units. However, compared to H1, 2021, the market is expected to spike by 66 BPS in H1 -2022.

Key reasons for this change in growth rate are attributed to market growth during first half the of the forecast period, owing to the increase in the consumer’s income and increased use of ornaments in ceremonies. Increasing millennial interest in gemstones and expanding use of colored gemstone accessories are expected to positively impact the market growth over the forecast.

In 2021, Gemfields introduced its high quality emerald yet- Chipembele, the rhino emerald. The magnificent gem will be auctioned off at the next Gemfields emerald auction, with a portion of the proceeds going to the North Luangwa Conservation Programme in Zambia.

Despite these prospects, there are certain likely challenges that stay ahead for the industry, which include unorganized markets in several countries that are characterized by illegal activities such as the smuggling of raw gemstones and environmental issues.

2023 to 2033 Gemstone Market Outlook in Comparison to Sales Registered in 2018 to 2022

The gemstone market is forecast to expand at a CAGR of 5.6% during 2023 to 2033 in comparison to a 4.1% CAGR registered from 2018 to 2022 and a 5.2% CAGR recorded between 2022 and 2023.

The market for gemstones is currently experiencing rapid expansion. The growing popularity of lesser-known gemstones is driving the market. While diamonds are still high in demand, other gemstones such as opals, topaz, alexandrite, and tanzanite are gaining popularity in the market, which is expected to contribute towards the growing consumption of gemstones.

In addition, the gems and jewellery market has seen a significant increase due to rise in the income of individuals, as well as increase use of ornaments in ceremonies. Further, in order to protect themselves from counterfeit products, consumers in developing economies such as Asia Pacific are gradually moving away from traditional unorganized jewellery towards organized branded products.

Apart from this, factors such as increasing millennial interest in gemstones and expanding use of coloured gemstones in jewellery, ornaments, and other accessories are expected to positively impact the market growth over the forecast period.

Sudip Saha

Principal Consultant

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How is the Demand for coloured Gemstones to Rise among Young Consumers?

Coloured gemstones are going to witness substantial demand from China and the USA in the near future which is expected to grow during the forecast period. According to the Natural Resource Governance Institute, the popularity of coloured gemstones has increased in recent years.

However, the prices of coloured gemstones have increased by 100% in the past decade, and consumers are interested in buying coloured gemstones other than diamonds as they are luxury products that act as status symbols

Coloured gemstones are gaining popularity among young buyers across the world, as the right price and uniqueness are important factors taken into account by young buyers.

Country-wise Insights

How is Development of Trade Associations in the United States Leading to Market Growth?

North America is expected to remain one of the key markets. Accounting for a bulk of market share, the United States held the key market share in 2022 in North America.

Growing establishment of trade associations and other non-profit institutes in the US has played a key role in organizing the market. Associations and institutions like the American Gem Society, Gemological Institute of America, Inc. are an example. For instance, The American Gem Society has undertaken numerous efforts with an aim to set up and maintain high standards of professional conduct and ethical behavior through accreditation and education of its members. Consumers are becoming increasingly savvy and knowledgeable about gemstone certification.

One of the key factors driving the growth of the United States gemstone market is the increasing popularity of colored gemstones. Consumers are showing greater interest in unique, rare, and colored gemstones like emeralds, rubies, and sapphires, as well as lesser-known stones such as tanzanite and tourmaline.

The rise of e-commerce sales channels is also contributing to market growth in the United States. Many consumers prefer to shop online for gemstones as online platforms can compare prices and access different options. E-commerce platforms like Etsy and Amazon have helped facilitate this trend by offering a convenient and safe online shopping experience.

The trade association has also laid down certain stringent standards. The association also undertakes necessary efforts to educate and provide its members with necessary business solutions. Such efforts on the part of establishments and associations are likely to facilitate regional growth in the United States.

What Drives China’s Insatiable Demand for Rare Gemstones?

China has experienced a significant economic boom over the past few decades. The growing middle-class population has a high demand for luxury goods including gemstones. The gemstones jewelry market in China proliferate significantly as people are becoming affluent. This led to a surge in the demand for rare gemstones.

The cultural significance of gemstones in China has played a role in the country’s demand for rare gemstones. Many people in China believe in the healing properties of gemstones and use them for spiritual purposes. Additionally, certain gemstones hold cultural significance in China. For instance, Jade is considered a symbol of luck, wealth, and longevity.

The gemstones and crystals market in China has seen tremendous growth. Given their unique qualities and perceived worth, customers are increasingly favoring jewelry made of gemstones and crystals. For instance, rings made of gemstones have become a popular choice for engagement rings in China since these are affordable. Therefore, the gemstones ring market is growing significantly in the country.

The diamond jewelry market in China is an important segment of the China gemstone market. Despite the growth of other gemstones and crystals, diamonds remain a popular choice among consumers in China. The market is driven by the prestige associated with diamonds, the increasing number of affluent consumers, and the growth of e-commerce platforms.

China has broadened its presence in the global gemstone market in addition to its domestic market. With over 80% of the global output of processed gemstones, the nation is the world's top producer and exporter of processed gemstones. China has also become a key hub for gemstone trading, with several gemstone trade locations spread across the nation.

How are prevalent social beliefs in India Regarding the Use of Specific Coloured Gemstones Contributing to the Global Market's Growth?

The Indian market is expected to rise at an impressive growth rate. The market is driven by the prevailing social beliefs regarding the use of specific Coloured gemstone.

In the Indian market, existing social beliefs about the use of specific coloured stones have a significant impact on consumer buying perceptions. Apart from this, gemstones are still regarded as a symbol of royalty and luxury, which explains why they are still widely used today. Such social beliefs and perceptions about gemstones may pave the way for increased demand in India.

The India gemstone market has been in existence for centuries. India is home to a wide variety of gemstones and is also known for its skilled artisans and craftsmen. Diamond is one of the highly appreciated gemstones in India.

India's gold and diamond trade made for 14% of the country's overall exports of goods in 2021 and 7.5% of India's GDP. Recently, the government has implemented several initiatives to encourage investment and improve technology and skills to advertise "Brand India" overseas. The government has allowed 100% FDI in the industry under the automatic method, meaning that neither the foreign investor nor the Indian business needs to seek prior permission from the Reserve Bank or the Indian government.

What is the Future of the Japan Gemstone Market and How Will it Evolve?

The gemstone market in Japan is a booming industry and has long been ingrained in the national heritage and culture. Pearls are among the popular gemstone varieties in the market in Japan. Japan is known for its high-quality Akoya pearls. This type of pearl is valued for its luster, round shape, and white hue.

Jewelers in Japan are experts in the distinctive gem-cutting method from the area known as koshu kiseki kiriko. Using a classic grinding method, gems are given faceted surfaces. They are also given highly reflecting patterns by cutting them by hand with a spinning blade. For instance, sapphires are typically sourced from Sri Lanka and Burma and are cut and polished in Japan.

Changes in consumer preferences and behavior are likely to impact the demand for gemstones in Japan. For instance, there is a growing trend toward lab-grown gemstones. These gems are produced in a controlled environment and have the same physical and chemical properties as natural gemstones. Lab-grown gemstones are typically less expensive than natural gemstones. Therefore, these gemstones are becoming increasingly popular among consumers in Japan.

Why is the Demand for Gemstones High in the France?

Europe is predicted to be one of the attractive markets during the forecast period, according to Future Market Insights. Women are increasingly venturing into new employment opportunities. Increasing standard of living and education has opened up new income opportunities in France. Besides this, when considering the gemstone market or end-use in the jewellery industry, women are considered as a prominent consumer segment. Thus, the rapidly growing spending power among women is expected to fuel growth in the demand for gemstones in the near future and provide opportunities for the global players to bring new and innovative, attractive gems into the France market.

How are Jewelers in Germany Embracing Sustainable Practices in Gemstone Sourcing and Manufacturing?

Germany is one of the leading countries in Europe when it comes to the Gemstone market. The country has a rich history of mining and trading precious stones that dated back centuries. The gemstone industry in Germany is an important part of the country’s economy. The diamond jewelry market in Germany is one of the profitable segments of the gemstone market. Germany is home to several renowned diamond dealers.

One of the key markets in the Germany gemstone market is Idar-Oberstein. Located in the southwest of Germany, this small town has been known as the “gemstone capital” for more than 500 years. The town’s location is crucial as it sits on a geological bedrock of agate, jasper, and quartz, making it an ideal place for mining and cutting gemstones. At present, Idar-Oberstein is home to over 100 gemstone dealers and cutters. This makes the town the leading gemstone center in Europe.

Jewelers in Germany are actively embracing sustainable practices in gemstone sourcing and manufacturing. They are taking a proactive approach towards responsible sourcing and ethical business practices. Several jewelers are working directly with suppliers who can show proof of their dedication to responsible sourcing to guarantee that their gemstones are sourced ethically. They are also taking steps to ensure that their suppliers adhere to strict labor and environmental standards.

Category-Wise Insights

Why is the Demand for Diamond Greater than Other Segments?

Diamond has historically been associated with luxury and status. It is often perceived as a symbol of love and commitment. This has led to a cultural and societal norm of giving diamond jewelry as a gift for special occasions such as engagements, weddings, and other events. This has contributed to the sustained demand for diamonds.

The demand for diamonds is driven by growing preferences for jewellery like diamond rings along with the unique properties of diamond such as sparkling fire, durability, and rarity, makes them a valuable gemstone among millennial. Millennial consumers are highly fascinated by high-end diamond jewellery.

The marketing and advertising campaigns of the diamond jewelry market have been quite successful in establishing the idea that diamonds are precious and attractive. The scarcity of diamonds has also contributed to their value and demand. Diamonds are quite uncommon and can only be found in certain parts of the world. Its scarcity coupled with the demand sparked by cultural and marketing aspects has led to high pricing and ongoing demand for diamonds.

Why is the Demand for Synthetic Gemstones Key to Revenue Generation?

Synthetic gemstones are comparatively more economical than the natural gemstones which is why their demand is more as compared to natural gemstones in the market. As a result, they can be offered at a lower price, making them more affordable for a wider spectrum of customers. Synthetic gemstones can be produced to have consistent color, clarity, and other characteristics. This is not always possible with natural gemstones. Customers seeking a certain look and style for their jewelry may value this stability.

There are ethical concerns surrounding the mining and production of natural gemstones. Many consumers are concerned about the impact of mining on the environment. Conversely, synthetic gemstones are produced in a controlled environment and do not have these same ethical concerns. These factors make synthetic gemstones an important source of revenue for the gemstone market.

How is Jewellery & Ornaments Segment a Prominent Segment in End Use?

In terms of end use, jewellery & ornaments segment accounts for a massive share in the industry in terms of revenue due to the availability of vivid shades of gemstones such as sapphire, ruby, emerald and others have become popular choices for wedding rings. Further, increasing demand for gemstones jewellery such as pendants, bangles and necklace in retail front is expected to contribute to the market growth.

Competitive Landscape

Key market players and start-ups in the gemstone market are dynamically engaging in various activities to drive growth and innovation. They are exploring new ways to source and mine gemstones sustainably and ethically while developing advanced technologies to enhance the quality and value of gemstones.

Several businesses place a high priority on product innovation, creating new and distinctive gemstone cuts, hues, and patterns to appeal to a broad audience. Several companies are also experimenting with unconventional materials to create eco-friendly and sustainable gemstone alternatives.

Many companies are using blockchain technology to create a transparent supply chain. This allows customers to trace the origin and journey of the gemstone from the mine to the market. This helps to ensure that the gemstones are responsibly sourced and ethically traded.

Certain companies are investing in advanced gemstone cutting and polishing technologies to improve the precision and accuracy of the cuts. Gemstones with superior light performance and higher value are produced as a consequence, and they are of a higher grade.

Start-ups and leading market players are also leveraging digital marketing and e-commerce platforms to expand their reach and accessibility to customers. They are creating online marketplaces that offer various gemstones as well as customized options and virtual try-on features to enhance the customer experience.

In the gemstone market, partnerships are a popular tactic, with businesses teaming up to co-develop products, advertise them, and provide distribution. Certain businesses even work with fashion designers to develop bespoke collections with unique gemstones or pioneering designs.

Key Start-ups

Diamond Foundry: This start-up produces lab-grown diamonds using renewable energy sources. The company claims that its diamonds are ethically and sustainably produced. Therefore, it offers a more environmentally friendly alternative to mined diamonds.

Muzo: This company sources emeralds from its own mine in Colombia and offers different jewelry featuring these high-quality gemstones. It also focuses on sustainability and social responsibility. It works with local communities closely as well to promote fair trade and environmental protection.

Key Market Players and Their Recent Developments

Gemfields: Gemfields is a top-tier provider of colored gemstones from ethical sources. The business specializes in Mozambican rubies and Zambian emeralds. The business also owns Faberge, one of the leading jewelry brands in the world. Moreover, it regulates the ethical mining and sale of colored gemstones from among the top gemstone deposits in the world.

• In November 2022, The House of Meraki x Gemfields J'aime collection was released after Gemfields announced their cooperation. Beautiful jewelry from the J'aime line is made entirely of emeralds from Zambia's Kagem mine.
• In July 2022, Margery Hirschey, a New York-based designer, once more collaborated with Gemfields on a seductive new collection focused on rubies and motivated by the historic city of Barcelona. Mozambique rubies from Gemfields' Montepuez mine are the ideal addition to this style of ornamentation.
• In May 2022, an exceptional pair of Mozambique rubies were introduced by Gemfields. The Gemfields' ruby auction included this remarkable pair of Mozambique rubies, measuring 61.50 carats in the uncut.
• In November 2021, Gemfields introduced its high quality emerald yet- Chipembele, the rhino emerald. The magnificent gem will be auctioned off at the next Gemfields emerald auction, with a portion of the proceeds going to the North Luangwa Conservation Programme in Zambia.

Greenland Ruby: In southwest Greenland's Aappaluttoq, Greenland Ruby A/S formally launched its mining operation for rubies and pink sapphires in May 2017. With a network of selected partners, Greenland Ruby promotes and sells its gemstones while also spreading its branding message to customers and merchants. The business works with jewelry designers, brands, and big manufacturers who need a steady supply of rubies and pink sapphire for their collections and jewelry collections.

• In October 2022, by forming a new partnership with Tracemark and FACET, Greenland Ruby moved the industry one step closer to being sustainable and ethical. They joined forces on the path to sustainability with the introduction of a distinctive assortment of jewelry items.
• In January 2022, RubyCloud™, a real-time live inventory feed created by GemCloud™, was introduced by Greenland Ruby. RubyCloud™, a registered brand, gives jewelry producers, designers, and merchants initial access to a vast selection of cut and polished, ethically sourced gems from Greenland.

Other Key Players Operating in the Gemstone Market

• Anglo American PLC
• Petra Diamonds Limited
• Rockwell Diamonds Inc.
• Gem Diamonds Limited
• PJSC ALROSA
• Swarovski Group
• Rio Tinto Diamonds
• DebswanaDiamond Company (Pty) Limited
• LucaraDiamond Corp.
• Botswana Diamonds P.L.C
• Fura Gems Inc.
• Dominion Diamond Corporation
• Mountain Province Diamonds Inc.
• Pangolin Diamonds Corporation
• Stornoway Diamond Corporation
• Arctic Star Exploration Corp.
• Trans Hex Group Ltd.
• Merlin Diamonds Limited
• KGK Group
• Pala International Inc.
• MIF Gems Co Ltd.

Gemstone Market by Category

By Product Type :

• Diamond
• Emerald
• Ruby
• Sapphire
• Alexandrite
• Topaz
• Others

By End User :

• Jewellery & Ornaments
  • Bangles
  • Necklaces
  • Pendants
  • Earrings
  • Rings
  • Anklets
  • Brooches
• Luxury Art

By Product Format :

• Natural
• Synthetic

By Region :

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East and Africa (MEA)