The India colored gemstones market should attain a USD 707.8 million in 2023. Between 2023 and 2033, a robust 10.5% CAGR should facilitate market acceleration. This should culminate in a USD 1,916.9 million for the market in 2033.
Gemstones are mineral crystal pieces that are cut and polished for creating jewelry along with other types of adornments. Occasionally, rocks without mineral content are also used, such as obsidian and opal. Pearl, jet, and amber, which are organic materials, are also fit for use as gemstones.
Diamond, sapphire, ruby, and emerald are regarded as precious gemstones. These gemstones offer distinct qualities such as
The value of a gemstone depends on the following factors
Treatment of gemstones is a common practice for enhancing their clarities and colors. For instance, the application of heat is prevalent for enhancing the appearances of gemstones. However, excessive application may result in gemstone spoilage. Other treatment methods include fracture filling, oiling/waxing, and radiation.
In India, gemstones are popular not only for aesthetic concerns. A significant chunk of the country’s populations believes that gemstones possess divine power. For instance, the ruby colored gemstone market is likely to accelerate in the coming years. This is due to the belief that ruby is representative of the Sun.
| Attribute | Key Insights |
|---|---|
| Estimated India Colored Gemstones Market Value (2023) | USD 707.8 million |
| Projected Market Value (2033) | USD 1,916.9 million |
| Value-based CAGR (2023 to 2033) | 10.5% |
| Top Players Share in 2022 | ~20 to 25% |
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The gemstone industry is witnessing a recovery in demand, after suffering huge losses during the pandemic in 2020. Various reasons have led to a shift in the demand for colored gemstones in developing countries such as India.
These reasons include the growing influence of social media, middle class aspirations for a luxurious lifestyle and rising living standards.
Demand for colored gemstone is also increasing as gemstones hold a sentimental value due to their Vedic properties. As a result, a prominent portion of the Indian population predominantly perceive them as stones with astrological powers rather than precious stones.
Further, other factors such as polishing, processing, lower labor, and distribution costs have subsequently boosted the product inflow from India to the regional market.
According to leading market intelligence firm Future Market Insights, the India market for colored gemstones accelerated at a positive 8.0% CAGR from 2018 to 2022. At the end of 2022, the market’s valuation settled at around USD 644.1 million.
Rising Demand for Customization and Digital Transformation to Influence India Market for Colored Gemstones
Consumer demand for customized colored gems is encouraging manufacturers to focus on developing new and innovative designs to fulfil the changing needs and demands of consumers.
They are using advanced technologies such as computer-aided design (CAD) and rapid prototyping (RP). There has been an increase in the demand for colored gemstone jewelry in the Indian market due to the latest trends followed by female consumers.
According to a document presented by Natural Resource Governance Institute (NRGI), the popularity of colored gemstone has increased in the recent years. However, the prices of colored gemstone have increased by 100% over the past decade.
As a result, consumers are interested in buying colored gemstone other than diamonds as they are luxury products that act as status symbols.
Colored gemstones in different price ranges are available in the market, and consumers can choose from them as per their spending ability. The two tiers of pricing that are likely to flourish are the under USD 499 retail segment and the above USD 7,500 segment.
Meanwhile, the USD 1,500 to USD 2,000 market and the middle tier of about $2,000 to $6,500 remains weak due to the slow economic recovery that is impacting the country’s middle class.
Digital transformation is about efficiency, saving time and money, and staying ahead of the competition. It also involves multifaceted efforts to improve the consumer experience and engage customers with fancy apps and high-tech products.
The presence of several online stores, along with review sites, allows consumers to easily compare products, designs, prices, and service levels.
With rapidly enhancing digital ecosystems, several players in the market are now focused on enhancing their presence on prominent social media platforms like Facebook, Twitter, and Instagram. Enhancing their presence on social media platforms has helped the brands to connect with their prospective millennial consumers.
Raw Material Scarcities are Likely to Restrict Colored Gemstones Sales in India from 2023 to 2033
With gold output accounting for less than 0.5% of total yearly consumption, India is forced to import gold to satisfy its needs. After crude oil, gold is India’s second-largest import commodity.
With the acceleration in the local market, less gold is exported, affecting the external sector's balance. In 2022, India imported gems and jewelry worth more than USD 1.4 billion. Due to limited supplies, domestic colored gemstone vendors are demanding an additional 10% premium for delivery, increasing the cost for the end user.
To avoid the twofold rise, producers are increasingly importing gemstones in the form of finished items from Dubai and Singapore, either for direct sale or for melting down to build customized products. With such a significant rise in pricing passed on to consumers, the sales of colored gemstones have suffered.
On the Basis of Type, Ruby Segment to Dominate Colored Gemstones Demand in India
Substantial demand for ruby gemstones is set to make it the dominant segment in the market based on type. The common belief that ruby can protect against illnesses and misfortune has been long rooted in the India’s cultural values.
Early cultures treasured the ruby gem, believing that it held the power of life due to its color association with blood. This is set to remain a prominent factor in the increasing demand for rubies in India.
The significant demand for ruby stones in the making of jewelry such as bangles, necklaces, and pendants has increased significantly in recent years. The increasing prominence of ruby stones in jewelry across high earning rural and urban areas has boosted the sales of ruby gemstone in India. Ruby gemstone contributed a share of more than 47.2% in 2022.
Jewelry and Ornaments Segment to Continue Holding Prominent Share in Terms of Revenue
The jewelry and ornaments segment is expected to account for around 47.7% of market share in India. This is owing to the expansion of the country’s middle class and innovative jewelry designs offered by manufacturers.
Jewelry and ornaments segment is sub-divided into bangles, necklaces, pendants, earrings, rings, anklets, and brooches. An important share of the market is contributed by rings, which accounted for a 29% share in the market in 2022.
Changing lifestyles and perceptions towards jewelry as a status symbol are expected to drive the acceleration of this segment. The escalating popularity of manufacturers that combine technology with ornaments is also helping in boosting the consumption of target products.
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India colored gemstone market is characterized by presence of numerous small to medium-scale players and prominent players including Rio Tinto. While the small to medium-scale companies mostly cater to local demand, prominent players’ products are aimed at international audiences.
Colored gemstones companies are offering various advantages such as stone origin, differentiation, and values. This is boosting the consumer loyalty towards the brands. Players are also forming different groups to make the colored gemstone sourcing and their supply chains more transparent and sustainable.
The Government of India is also trying its best to be supportive of the market. In recent years, the government has announced various measures to reduce prices and promote purchases.
For instance
In February 2022, Nirmala Sitharaman, India’s Finance Minister, announced that there would be a 5% reduction on the import duties on polished and cut diamonds.
| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | USD 707.8 million |
| Projected Market Size (2033) | USD 1,916.9 million |
| Anticipated Growth Rate (2023 to 2033) | 10.5% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value |
| Key Countries Covered | India |
| Key Segments Covered | Stone Type, Product Type, Application, Product Format, Cut Type, Shape, Clarity, Region |
| Key Companies Profiled | Anglo American PLC; Gemfields Group Ltd.; Petra Diamonds Limited; Rockwell Diamonds Inc.; Gem Diamonds Limited; PJSC ALROSA; Swarovski Group; Rio Tinto Diamonds; Botswana Diamonds P.L.C; Fura Gems Inc.; Dominion Diamond Corporation; Mountain Province Diamonds Inc.; Trans Hex Group Ltd.; Merlin Diamonds Limited; KGK Group; Pala International Inc.; MIF Gems Co Ltd.; Greenland Ruby |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities, and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The market is pegged at a value of USD 707.8 million in 2023.
The market is estimated to reach USD 1,916.9 million by 2033.
The market is anticipated to surge at a CAGR of 10.5% through 2033.
Ruby segment maintains its supremacy, capturing 47.2% of market share in 2022.
Surge in online platforms for gemstone purchasing is elevating the market.
| Market Value for 2024 | USD 110.5 million |
|---|---|
| Expected Market Value for 2034 | USD 182.7 million |
| Value-based CAGR from 2024 to 2034 | 5.2% |
| Estimated Market Size (2023) | USD 1.55 billion |
|---|---|
| Projected Market Size (2033) | USD 4.64 billion |
| CAGR through (2023 to 2033) | 11.6% |
| Estimated Market Size 2022 | USD 45,700.0 million |
|---|---|
| Projected Market Size (2032) | USD 85,887.5 million |
| Value-based CAGR (2022 to 2032) | ~6.5% |
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India Colored Gemstones Market
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