Colored Gemstones Market By Product Type (Colored Diamond, Emerald, Ruby), Product Format (Natural, Synthetic), End-Use (Jewelry & Ornaments, Luxury Arts) & Region - Forecast 2021–2031
Colored Gemstones Market - Analysis, Outlook, Growth, Trends, Forecasts
- March 2021
- 300 pages
- Consumer Product
About the Report
The colored gemstones market is currently experiencing a significant growth. The market is driven by the increasing popularity of less known gemstones. While diamonds remain highly sought-after, there are numerous other gemstones like opals, topaz, alexandrite, and tanzanite that are gaining popularity. This is fuelling the demand for gemstones.
Apart from this, aspects such as growing millennial attention towards colored gemstones and expanding use of colored gemstones in jewelry, ornaments, and other accessories are expected to positively impact the market growth during the forecast period.
In its latest version of the study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for colored gemstones. The report tracks the global demand for colored gemstones in 20+ high-growth markets, along with analysing the impact COVID-19 has had on global sales.
How Does Future Outlook Match Up with Historic Sales of Colored Gemstones?
The sales of colored gemstones have bulged in the past few years. Many end-use sectors and industries like jewelry and others claim that there is increasing demand for colored stones over classic and standard gemstones.
Since past few years, the industry is not only driven by emergence of new markets but evolving distribution networks and channels. Besides this, the increasing significance of gemstones as an essential element of spiritual practices for restoring energy fields is further likely to drive growth.
These factors point towards an optimistic growth of the market during the forecast period. According to Future Market Insights (FMI) analysis, colored gemstones sales are set to grow at a 5.7% CAGR between 2021 and 2031.
Role of Artisanal Small-Scale Miners in the Industry
As per the statistics of International Institute of Sustainable Development (IISD), small scale and artisanal mining have experienced an explosive growth in the past few years. Factors such as increasing difficulty of earning a livelihood from agriculture in rural sectors and consequently rising mineral prices have facilitated a growth in small-scale and artisanal mining. Millions of individuals are directly engaged in small-scale and artisanal mining and the number is poised to increase further. Such expanding penetration of artisanal and small-scale manufacturers is one of the factor that points out towards a growth in the industry. Even today, the supply of colored gemstones by small-scale and artisanal miners is significant.
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A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.
How has Rapid Globalization Affected the Colored Gemstone Business?
Rapidly growing interdependence on global economies, population, and culture in the past decade has played a major role in facilitating growth by making the world a smaller place. Improved market reach through easy communications via social media channels, digital photography, and other channels has created a conducive environment for growth.
Emergence of new distribution channels such as e-commerce is a result of rapid globalization. Intent of producers to reach a more widespread pool of prospective buyers has further played a significant role in fueling the sales of colored gemstones in the past few years. However, with the market turning global, the need for high vigilance on operations or gem sourcing has become the need of hour.
How has Rise in Demand for Little Known Colored Gems Impacted the Growth?
With rapid globalization the awareness regarding availability of colored gemstones has increased. Besides this, other factors such as easy access to information via internet sites, television shopping, social media shopping, and others are spreading awareness of little known colored gemstones.
Prevalence of such trends is considered crucial for marketing and distribution. This is expected to drive sales in the market over the forecast period.
What is the Impact of Rapidly Growing Middle-Class Population?
Countries with high middle-class population are characterized as potential markets. The demand for colored gemstones in the middle and low-income countries is steadily experiencing a surge. Factors such as growing middle-class aspirations for luxury items, their increasing spending power, and rapidly improving standard of living are likely to further facilitate a rise in the adoption of colored gemstones.
Out of the total population, the population in the middle-income group accounts for a notable share. Thus high penetration of middle-class coupled with increasing spending powers is expected to positively impact the market growth in the coming years.
Colored Gemstones Looked at as Safe Assets
People today are increasingly looking forward towards valuable metals and gemstones as safe assets. This change in consumer perception regarding gemstones as a piece of luxury to an essential investment has further encouraged sales of colored gemstones in the market.
Besides this, increasing number of publications, blogs and articles by players regarding investments in gemstones has further encouraged consumers to make a purchase considering it as a safe investment. Such trends in the market are further expected to facilitate growth in the sales of colored gemstones during the forecast period.
Will Developments in Lab-Grown Colored Gemstones Fuel Demand?
Lab grown colored gemstones are perceived by many consumers as affordable and ethical alternative or substitute of earth-mined stones. Besides this, the capability of lab grown diamond to look optically or physically identical has helped these stones gain more popularity. Such lab grown colored gemstones are also perceived to have fewer flaws.
Development of lab grown colored gemstones also cause less carbon footprints. All of the above positive aspects of such lab grown colored gemstones has helped such stones gain significant popularity. Thus, positively impacting market growth.
Prevailing Social Beliefs Regarding the Use of Specific Gemstones impacting Purchase Decisions
The existing social beliefs regarding the use of specific colored stones often highly impact consumer’s buying perceptions. For instance, the prevailing ancient beliefs that the emeralds power one with future foresight, on the other side, other colored gemstone like red ruby is associated with power and courage. Such prevailing social beliefs since ancient times has played a significant role in facilitating adoption of colored gemstones among individuals.
Besides this, colored gemstones are even today considered as a symbol of royalty and luxury which is why their use is even prominent today. Such social beliefs and perception regarding colored gemstones has fueled demand growth.
Prevalence of Illegal Activities Posing Threat to Growth
The colored gemstones market is classified as unorganized and largely fragmented, exhibiting the presence of a large number of small scale miners and artisans operating. The lack of presence of standard labor and social practice, environmental laws has resulted in corrupt practices and internal conflicts in many different regions.
Many such countries that have precious gemstones in abundance often claim that they loose huge amount of revenue annually through illegal exports and other activities. Nigeria, for instance is one such example that suffers huge annual losses due to illegal activities. These are some of the key challenges posing threat to the market.
Development Efforts on Part of Trade Associations Facilitating Growth in U.S.
Establishment of trade associations and other non-profit institutes in the U.S. has played a key role in enabling growth. American Gem Society, Gemological Institute of America, Inc., and others are some examples of trade associations. The American Gem Society has undertaken numerous efforts with an aim to set up and maintain high standards of professional conduct and ethical behavior through accreditation and education of its members.
The trade association also has laid down certain stringent standards that are required to be adhered by the members of associations. The association also undertakes necessary efforts to educate and provide its members with necessary business solutions. Such efforts on the part of establishments and associations are likely to facilitate regional growth in USA.
Growing Fascination for Colored Gemstones Driving Sales in U.K.
In the U.K. gemstones are increasingly looked over as a symbol of royalty and luxury as the use of colored gemstones has been popular among the royals since past many years. This prevailing trend has positively impacted the sales of colored gemstones among people since many years. Among colored gemstones, sapphire is one of the prominent colored gemstones.
Changing Lifestyle Driving Sales of Colored Gemstones in India
In India, women are increasingly venturing into new employment opportunities. Increasing standard of living and education has open up new income opportunities for women in the country. Besides this, in case of colored gemstones and jewelry, women are considered as a prominent consumer segment. Thus, a rapidly growing spending power among females in India is expected to fuel growth in the demand of colored gemstones in the country.
Are Chinese Millennial Likely to Drive Demand for Colored Gemstones?
Chinese consumers are avid buyers of jadeite gemstone. The significance of colorful stones among millennial is rapidly growing. The preferences for colorful stones among young millennial couples as their wedding jewelry has rapidly increased in the past few years. The demography is considered as a prominent consumer segment fuelling high sales of colored gemstones in China. Some of the leading companies have therefore ventured in China in order to capitalize on available opportunities.
How is Growth Unfolding in Potential Markets such as Madagascar?
In terms of sales opportunities for colored gemstones, Madagascar is one of the lucrative markets. The country produces sapphires and rubies of many colors. The nation is considered as one of the top suppliers of sapphire. Even today most of the sapphires in the nation are mined artisanally. As per the statistics mentioned by International Institute of Environment and Development (2017) the nation is a source to 40% of world’s sapphires. This places the country as one of the key markets.
Colored Diamond to Remain Top-selling Category
In terms of revenue share by product type, diamond holds a notable share of 31.5% in the market. The demand for colored diamonds is driven by growing preferences for jewelry like colored diamond rings among millennial. Millennial consumers are highly fascinated by high-end colored diamond jewelry. The growing spending power among millennial has further encouraged millennial buyers to switch to colored diamonds. Thus, facilitating high demand growth for diamonds. Emerald, ruby and sapphires are other prominent colored gemstones.
Jewelry and Ornaments to Continue to Remain the Most Prominent Application of Colored Gemstones
As per the analysis, the application of colored gemstones in jewelry and other ornaments is likely to continue to dominate over the forecast period. Increasing demand for colored gemstones jewelry such as bangles, necklace, and pendants in retail front is likely to positively impact growth. Colored gemstones such as ruby and sapphire has been a popular choice for wedding rings since ancient times.
The availability of vivid shades of gemstones is one of the prominent factor that have stimulated the use of colored gemstones in jewelry. Many jewelry players on the retail front today are actively provide guidance to customers regarding the assortment of shades available in different gemstones.
Lab-Grown Diamonds to Hold a Notable Share over Natural Gemstones
Synthetic colored gemstones hold a notable share of 87.9%. The demand for synthetic colored gemstones as compared to natural colored gemstones is higher. Synthetic colored gemstones somewhat possess similar properties as to the earth-mined colored gemstones. Besides this, synthetic gemstones are comparatively more economical than the natural gemstones which is why their demand is more as compared to natural colored gemstones. The category is further likely to register a high CAGR of 5.8% during the forecast period.
The colored gemstone market is highly unorganized, exhibiting the presence of a large number of regional, local players and artisanal miners operating in the industry. The players operating in the industry are currently focusing on improving their mining operations. The emergence of new channels has further stimulated level of competition. The growth of online sales channel, increased marketing spending and growing focus on environment and sustainability has further reshaped the industry trends and reach. All of such efforts and initiatives on the part of players operating is likely to further fuel industry growth during the forecast period.
Some of the leading companies operating in the market are:
- Anglo American Plc
- Gemfields Group Ltd
- Petra Diamonds Ltd.
- Rockwell Diamonds Inc.
- Gem diamonds Ltd.
- PJSC ALROSA
- Swarovski Group
- Botswana Diamonds Plc
- Dominion Diamond Corporation
- Mountain Province diamonds, Inc.
- Trans Hex Group Ltd.
- MIF Gems Co. Ltd.
- Greenland Ruby
- Merlin Diamonds Ltd.
- Fura Gems, Inc.
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for value
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia, Oceania Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, South Africa, Brazil, Mexico, Turkey
Key Segments Covered
Product Type, End-Use, Product Format, and Region.
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
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Colored Gemstones Market by Category
- Colored Diamond
- Jewelry & Ornaments
- Luxury Arts
- North America
- Latin America
- East Asia
- South Asia
- Middle East and Africa (MEA)