Gemstones market will develop at a CAGR of approximately 5% during 2018 to 2026: FMI Study
New Delhi, June 21 (KNN) Gemstones market will develop at a Compound Annual Growth Rate (CAGR) of approximately 5% during 2018 to 2026, as reported by a new research intelligence outlook of Future Market Insights (FMI).
According to the FMI’s report, global demand for gemstones is envisaged to surge steadily over the course of coming years. Gemstones worth nearly US$ 22 billion were sold in 2018. The global gemstones market revenues are likely to see moderate Year-of-Year (YoY) growth of 4.4% in 2019.
Nearly 85% of overall sales of gemstones is accounted by jewelry and ornaments, a majority of which is accounted by gemstone-studded rings. Customization of gems and jewelry has been trending since the recent past, which is creating high-potential growth opportunities for gemstones market players, according to report.
The report suggests that a number of manufacturers and designers are exclusively focused on the development of innovative, customized gemstone jewelry designs by using cutting edge technologies such as rapid prototyping (RP) and computer-aided design (CAD). However, research also clearly points to steady growth in the rate of purchasing gemstones for luxury arts.
Diamond holds an approximate revenue share of 80% of overall gemstones sales and has been projected to remain the bestselling type of gemstones over the years to come, it added.
The report highlights promising growth in the demand for ruby, as indicated by the gemstones market forecast for the next few years. At present, more than 85% of gemstones that are sold are in synthetic format.
The study opines that the versatile physical attributes and relatively lower price point of gemstones in the synthetic format will continue to position them as a preferred choice over natural gemstones.
Although low-end gemstones have been performing well in terms of sales over the recent past, high-end gemstones market will continue to nurture the premium consumer base. Consumers from emerging Asian economies will particularly prefer high-quality gemstones that are rare to collect and unique in designs.
While this trend has originated from the constantly improving per-capita spending on lifestyle products, a sizable consumer population also reaffirms to adhere to budget constraints while selecting the type of gemstone, the report reveals.
North America, with over 1/3rd share of the global gemstones market value, will remain the preeminent region for investment, for manufacturers, designers, and marketers of gemstones. Moreover, according to the study, Europe also accounts for a considerably high value share in gemstones market – prominently owing to significant demand for diamond and precious gemstones jewelry, it stated.
Furthermore, Asia Pacific - the hub for some of the high-quality, finest gemstone finds, is cited as an important regional market for both, diamond and colored gemstones. FMI’s analysis points to China’s primacy in the APAC’s gemstones market, followed by India and Japan.
Supply of colored gemstones such as ruby, sapphire, emerald, and others is likely to remain fragmented, as colored gemstones has been defined as a small cottage industry. The number of players is high and the products range is wide. On the other side, the market for diamond is governed by a few large players, owning concentrated mine pockets, said the report.
A majority of leading companies operating in the global gemstones market landscape are strategizing on the expansion of mining, production, and processing capacities of gemstones. Several players in gemstones market are also focusing their developmental strategies on mining, manufacturing, and processing of diamond.
The report has profiled some of the prominent companies active in global gemstones market, including Gem Diamonds Limited, Rockwell Diamonds Inc., Debswana Diamond Company (Pty) Limited, Swarovski Group, Petra Diamonds Limited, Botswana Diamonds P.L.C, Stornoway Diamond Corporation, Arctic Star Exploration Corp., KGK Group, and others.