Friendly Reminder:

The data presented in the report by Tenoris is sourced from approximately 1,300 professional jewelry retail stores across the United States, constituting approximately 6.5% of the total U.S. retail value. Please use caution when referring to these figures.
This article solely summarizes the data and relevant content from the report and does not represent the viewpoints of Diamond Watch.
The terms 'sales volume/retail volume' refer to the number of items sold, while 'sales amount/retail amount' is measured in U.S. dollars.

December Jewelry Retail Market

In December, jewelry retail sales in the United States increased by 1.1%, while retail volume decreased by 2.3%. Breakdown by sectors:

Fashion jewelry sector: Retail sales increased by 2.6%, and retail volume decreased by 2%.
Bridal jewelry sector: Retail sales decreased by 11.2%, and retail volume decreased by 7.1%.

Overview of 2023

In 2023, the total retail sales of finished jewelry in the United States decreased by 3.9%, and the total retail volume decreased by 4%. Sector-wise breakdown:

Fashion jewelry sector: Retail sales decreased by 2.5%, and retail volume decreased by 3.6%.
Bridal jewelry sector: Retail sales decreased by 10.6%, and retail volume decreased by 8.4%.

Looking into the diamond jewelry sector, its performance was relatively better with retail sales down by 2.8%, and retail volume decreased by 3.5%. Further breakdown:

Natural diamond jewelry accounted for 94% of retail volume. The overall retail sales for 2023 decreased by 4.8%, and retail volume decreased by 5.9%.
Lab-grown diamond jewelry: Retail sales increased by 40.6%, and retail volume increased by 56.2%.

Tenoris states in the report that the decline in sales in 2023 is the result of various factors. These include the tail end of the 'special demand driven by the COVID-19 pandemic' in the first half of 2023, consumer fatigue with jewelry, the thriving tourism industry, and public concerns about economic prospects.

Concerns about the economy may drive people to make more restrained and prudent purchasing decisions. During this time, consumers may reduce the quantity of purchases while increasing the average purchase price.

This trend was evident during the 2023 holiday season, with the average retail sales during this period increasing by 1.6% year-on-year.

In December, the performance of professional jewelers in the United States was largely consistent with November, with sales increasing by 0.1%, volume decreasing by 2.3%, and average transaction value increasing by 2.4%. This once again confirms the trend of 'less for more.'

Divided into three segments based on retail prices

Tenoris focused on the 'mid-range market' with retail prices between $1,500 and $5,000 for key statistics. The results are as follows:

▲ Sales of products priced between $1,500 and $5,000 have remained almost unchanged from the previous year. Source: Tenoris

In terms of retail sales, this segment accounts for about 36% of the overall retail sales. The performance in 2023 has been very stable, with a decrease of less than 1% compared to 2022. Tenoris believes that if this segment experiences significant fluctuations, it indicates that the entire industry is under certain pressure and is being influenced by internal and external factors such as rising material prices and inflation.

Compared to this segment, the high-end market (retail price $5,000-$10,000, accounting for 14% of the total) has seen a decrease of nearly 3% in both retail sales and quantity. The low-end market (retail price $750-$1,500, accounting for 17% of the total) has experienced a nearly 6% decrease in retail sales (the report does not specify changes in quantity).

Engagement Ring Market: CanNatural Diamonds Hold Their Groundin the High-End Segment?

The engagement ring market has always held a 'benchmark' significance, and Tenoris' description of this segment is quite nuanced.

In December, the sales of lab-grown diamond engagement rings increased by 33% year-on-year, which is a positive trend. The products showing growth come from the retail price range of $5,000 and below, with the $500-$750 price range experiencing the highest sales growth (+118%).

However, in the $5,000-$7,500 price range, the sales of lab-grown diamond rings decreased by 26%. In this price range, the average weight of lab-grown diamonds used is 3.28 carats. The report suggests that, from a wearability perspective, such diamonds might be 'too large' for consumers.

In comparison, the sales of natural diamond engagement rings decreased by 30%. However, in the high-end segment, such as the retail price range of $12,500-$15,000, sales in December increased by 14.3%, and lab-grown diamonds almost have no presence in this segment.

▲ Lab-grown diamonds almost have no participation in the segment with a retail price of $12,500-$15,000. Source: Tenoris

Will the scope of lab-grown diamond jewelry continue to expand?

Before 2023, U.S. consumers primarily purchased two types of lab-grown diamond jewelry: engagement rings and earrings.

Within the scope of Tenoris' survey, approximately 39% of retailers sold lab-grown diamond engagement rings, and 57% sold earrings. Interestingly, over 30% of retailers exclusively sold these two types of products.

However, in 2023, the situation changed. More retailers started selling a greater variety of lab-grown diamond products. Within Tenoris' surveyed range, over 40% of retailers are now selling 'full-category' lab-grown diamond jewelry, and this percentage is still increasing.

▲ The folch chart shows the percentage of retailers covering one of these categories (lab-grown diamond bracelets). Clearly, this percentage is on the rise each year.

The report suggests that this trend of selling 'full-category' brings two possibilities:

Lab-grown diamonds' share in the sales of the full jewelry category will rapidly increase.
It puts pressure on the price range of the full category.

For the lab-grown diamond industry, this is a relatively positive signal.

Sales of loose diamonds

In December, the total sales volume of loose diamonds (natural + lab-grown) increased by 15.7%, while the total sales value decreased by 4.4%.

For the full year of 2023, the total sales value of loose diamonds (natural + lab-grown) declined by 12%. (The report did not specify changes in sales volume.)

Natural Diamonds

In 2023, there was a significant decrease in consumer demand for natural diamonds, with December's sales value for loose diamonds down by 5.5% YoY, and sales volume down by 11%.

However, the average consumer spending per diamond increased by 6.3%, reaching $10,909. This increase can be attributed to two main factors:

Consumers aiming for larger diamonds. In December 2023, the average weight of sold natural diamonds was 1.68 carats, compared to 1.52 carats in the same period of 2022.
Consumers being willing to spend more on individual products. In December, about 10% of natural diamonds sold by professional jewelers were priced between $20,000 and $50,000.

For retailers of natural diamonds, the focus on larger diamonds has captured more retail value, which is a positive trend.

Lab-Grown Diamonds

Consumer demand for lab-grown diamonds is growing, but the situation doesn't look optimistic from the perspective of average consumer spending.

In December, the sales value of lab-grown diamond loose stones increased by 1.1% YoY, sales volume increased by 34%, and the average price decreased by around 24%.

For the full year of 2023, the total sales value of lab-grown diamond loose stones increased by 16%. This percentage is lower than the growth observed in 2022 (+43%) and 2021 (over +100%).

The gross profit margin for retailers reached 65.6% in December, a YoY increase of 21%.

There is a consistent trend in consumer purchases of lab-grown diamonds. In sold loose diamonds, approximately one-third falls in the price range of $2,500 to $5,000, and around one-fifth falls in the weight range of 2.00-2.24 carats. Colors and clarities consistently fall in the E–G and VS1 range.

In terms of shape, the sales volume of round diamonds is less than 50%, while oval-shaped diamonds exceed 25% and continue to grow.

In terms of weight, lab-grown diamonds sold in December (loose stones) had an average weight of 2.17 carats, lower than November's average weight but still significantly higher than the same period in 2022 (1.87 carats).

Another important signal is that the consignment ratio for retailers has approached 70%, a substantial increase from 2022 (51%).

Closing Remarks

Previously, we received several inquiries from partners asking whether 'Tenoris' report accurately reflects the U.S. retail market.' The answer is as follows:

As mentioned at the beginning, Tenoris' research samples have limitations, and we have maintained a reserved attitude toward its content.

However, as this is currently the only detailed and regularly updated retail industry report we can find, we will continue to interpret and share it promptly.

Please exercise caution in your reference.