U.S. Retail Diamond Jewelry Market Grows For 10th Consecutive Year

U.S. Retail Diamond Jewelry Market Grows For 10th Consecutive Year
IDEX Online, Israel
(May 4, ’06, 11:11 IDEX Online Staff Reporter)

The Diamond Information Center at JWT reports that retail sales of diamond jewelry in the U.S. increased by 7 percent in 2005. Total U.S. retail sales for the diamond jewelry category, which represents over 50 percent of sales worldwide, totaled $33.7 billion in 2005 – a $2.2 billion increase over 2004 sales of $31.5 billion. The total number of transactions grew by 3 percent over 2004 and average ticket price showed a 4 percent growth.

“Following a year of tremendous growth, we must continue to challenge ourselves to expand the diamond jewelry market, not only by creating new designs, but also by discovering new integrated ways of reaching our consumer,” said Richard Lennox, director-in-charge of the Diamond Marketing and Advertising Group at JWT. “We are lucky to work with a product that holds such a deep emotional meaning for consumers; however, we must not take this for granted. As a collective industry, we must protect these emotions if we hope to continue to move the market in 2006 and beyond.”

JWT looks to drive the market by continuing to introduce new products, as well as reinvigorating key gifting occasions. In 2005, Three-Stone Diamond Jewelry continued to be a key driver for overall sales growth. The Three-Stone category – any piece of diamond jewelry that consists of three diamonds representing a couple’s past, present and future – had double digit sales growth of 11 percent. Since its launch five years ago, the average annual sales growth of the Three-Stone category is 27 percent.

Last year, the Diamond Right Hand Ring grew the non-bridal fashion diamond ring category by 15 percent, making it the second year of double digit growth.

In 2005, Christmas was valued at $4.9 billion, an increase of 6 percent over 2004. The fourth quarter has always been essential for sustained growth of the U.S. diamond jewelry sales.

In 2005, diamond engagement rings reached their highest average price at $2750. The total retail value for the diamond engagement ring category is now $4.8 billion, a growth of 7 percent over 2004.

“2006 will be a challenging year as other sectors of the luxury goods market continue to vie for new consumers,” added Lennox. “However, I am confident that with the support of our colleagues across the industry, the diamond group at JWT will continue to contribute strong work that will help to generate important growth in the diamond jewelry market.”