The gems and jewellry industry of India is one of the largest in the world. At the moment, it contributes 29% of the global market for jewellry consumption. It is an industry with a total market size of $75 billion in 2018, with estimates placing that value at $100 billion by 2025.
There are more than 300,000 firms and individuals who are active in the gems and jewellry industry. Their efforts contribute about 7% of the GDP for India each year. Over 4.6 million people are employed by the firms in this industry, which contributes about 15% of the total merchandise exports that the country offers to global markets each year.
What is notable about this industry is that India is the largest center for cut and polished diamonds in the world. 75% of the world’s polished diamonds are handled by the gems and jewellry industry in India. About $1.5 billion in exports are achieved each month by the industry with these diamonds.
Important Gems and Jewellry Industry Statistics
#1. The gems and jewellry industry in India exports 85% of the world’s polished diamonds. The industry also exports 93% of its cut and polished diamonds each year. (India Brand Equity Foundation [IBEF])
#2. India exported $21.71 billion in cut and polished diamonds between April 2017 and February 2017. (IBEF)
#3. Exports of gold coins and medallions reached $1.89 billion in FY 2018, while the exports of silvery jewelry stood at $3.32 billion at the end of the fiscal year. (IBEF)
#4. The United States, United Arab Emirates, and Hong Kong account for 75% of the total exports achieved by the gems and jewellry industry each year. Since 2005, total net exports for the industry have risen by a CAGR of 7%. (IBEF)
#5. India is the largest consumer of gold in the world, mostly due to the work of the gems and jewellry industry. In 2017, gold demand in the country rose by 11%, reaching 737.5 tons. It is one of the few segments of the industry where the government allows 100% foreign direct investment. (IBEF)
#6. In 2016, there were 128 million carats of diamonds that were produced from mines around the world. Russia is believed to have the largest amount of reserves, at more than 650 million carats. (Statista)
#7. Almost 50% of the diamonds which are mined each year do not have value in the gems and jewellry market. These diamonds are used for industrial purposes instead because of its unique ability to cut and grind items. (Statista)
#8. 20% of the global diamond production is currently managed by De Beers. (Statista)
#9. From April 2000 to June 2018, over $1.15 billion in Foreign Direct Investment was received by the gems and jewellry industry of India. (Department of Industrial Policy and Promotion)
#10. Deals of more than $1.19 billion were made at the Indian International Jewellry Show that was held in August 2018. (IBEF)
#11. Total gold production in India for 2017 reached 1,598 kilograms. That level is higher than the previous 3 years for the industry and matches figures from 2013, but falls short of the 2,190 kilograms that were produced in 2012. (Statista)
#12. Most jewelry sales for the industry occur in the month of December. In the United States, about $5 billion in sales occurs during that month alone. In comparison, only May (with Mother’s Day) is able to top sales of $2.5 billion for the month. (Permuto)
#13. 96% of consumers say that they give a gift which involves jewelry at Christmas. 74% say that Mother’s Day is a chance to give jewelry as a gift, while 70% say that they give jewelry at Valentine’s Day. (Permuto)
#14. 885 of the jewelry items that are purchased in the United States, often from the Indian export market, is for someone within the buyer’s household. (Permuto)
#15. 50% of the jewelry that is purchased online around the world involves diamonds. Precious metals account for 18% of total sales, followed by miscellaneous gems and pearls (12%), watches (12%), and then all other types of jewelry (8%). (Permuto)
#16. Despite the surge in online sales for the gems and jewellry industry, 60% of people said that their shopping plans for the 2018 holiday season include a visit to a brick-and-mortar retailer, a figure that is up 3% from the year before. (NPD)
#17. 42% of shoppers say that they plan to visit discount stores or mass merchants to take care of their holiday-related jewelry shopping needs, whereas 24% said they would shop at a national chain, and 23% said they’d shop at department stores. (NPD)
#18. Over half of shoppers in the U.S. say that they research gifts before they shop online with a website like Amazon, while 37% say that they look at consumer reviews or find information using Google or Bing. (NPD)
#19. The average consumer plans to spend $492 in 2018 for their holiday shopping and brick-and-mortar stores, compared to the $748 that they plan to spend online for gifts, including jewelry items. (NPD)
Gems and Jewellry Industry Trends and Analysis
The trend within the gems and jewellry industry to watch is the rise of branded products. Although branded jewellry items account for just 20% of the overall market right now, that figure has doubled since 2003. By 2020, the branded segment of the industry is expected to reach as much as 40% of the market.
There is a reconfiguration occurring in the channel landscape of the industry as well. In 2003, online sales of gems and jewellry accounted for just 1% of the market. In 2018, that figure now stands at 10%, even in the fine jewellry sectors. Fashion jewellry sales from e-commerce sites may reach as high as 15% by 2020 and 30% by 2025.
Social media is changing the landscape of this industry as well. Two-thirds of shoppers say that they look at online research before purchasing an item, with the same number of people saying that they turn to their friends, families, and social media references for advice and information about the products they want.
India will continue to dominate the global gems and jewellry sector, especially in the cut and polished diamonds segment. Assuming the global economy continues to push forward with strength, expect solid growth for this industry in the next 5 to 10 years.