Australian Jewelry Market Overview
Australia’s jewelry sector presents an array of sparkling rings and elegant necklaces, catering to diverse tastes.
In 2023, the sector’s value hit around $2.9 billion USD, topping the accessory market in the country and forecasting continued growth. Leading the revenue charge, fine jewelry eclipsed fashion jewelry earnings by nearly fivefold. However, fashion jewelry remains popular among the younger Australians thanks to its affordability, utilizing less costly materials and semi-precious components.
Fine jewelry, often seen as a statement of luxury, is mainly purchased by those with higher incomes, with nearly 50% of such purchases made by affluent Australians in 2023.
The landscape of jewelry sales is shaped by numerous factors, including shifts in consumer outlooks, current fashion trends, varying levels of disposable income, and marriage rates, which directly influence the market for rings tied to nuptials. As jewelry is a discretionary purchase, success in retail hinges on adapting to ever-evolving preferences in a competitive environment marked by a reduction in store count.
When it comes to retail, Australia’s jewelry scene is defined by a multitude of independent shops and well-known fine jewelry chains such as Prouds, Michael Hill, and Pandora.
These independent retailers made up a majority of the 3,501 jewelry outlets by the close of 2023, with the majority situated in New South Wales. The James Pascoe Group stands out in the fine jewelry space with its trio of prestigious brands: Prouds, Goldmark, and Angus & Coote. Michael Hill emerged as a significant name in the sector, with its Australian operations generating over 330 million Australian dollars in the 2023 fiscal year.
Fashion jewelry, albeit with global reach via Lovisa Holdings, has seen less prosperity when compared to the fine jewelry segment, which has contributed to the downfall of fashion jewelry names like Diva, Equip Accessories, and Emma & Roe in the last ten years.
Boutique brands, however, have seen growth, with Swarovski and the domestic label Secrets Shhh leading the charge in the exclusive brand segment in Australia. To remain competitive, these fashion jewelry brands mimic the designs of more expensive fine jewelry using affordable materials to entice consumers seeking style without the high price tag.”
Consumer demand for jewelry in Australia has varied, often seeing a spike around times of celebration such as Valentine’s Day and Christmas season due to the release of special collections.
The pandemic saw a dip in jewelry sales amidst a reduced need for formal attire, with more people staying indoors. More recently, there’s been an uptick in the demand for custom, ethically sourced, and eco-friendly jewelry items aligned with broader sustainable consumption trends within Australia. Furthermore, the rise of lab-created diamonds is noteworthy, with brands like Pandora introducing these in their 2023 collections to test market response.