Market & Pricing Trends
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Diamond Prices: The RapNet Diamond Index (RAPI™) for 1-carat round stones (D–H, IF–VS2) continued rising in spring 2025. Rapaport reported RAPI +1.4% in March 2025, driven by low inventories and robust demand at trade fairsrapaport.com. In April (amid U.S. tariff announcements) prices spiked then stabilized; the 1ct RAPI rose about 0.7% in April, with the 0.30ct index up 2.8% on the month (and +13.2% year-to-date)rapaport.com. US wholesalers were active buyers of specific goods, causing shortages in those categoriesrapaport.com. Industry analysts say inventories are moving toward normal levels – Pharos Beam notes “some improvement in polished sales in the U.S., and a reduction in levels of rough entering the pipeline”nationaljeweler.com – suggesting greater stability may return by mid-2025.
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Jewelry Sales: U.S. retail jewelry sales grew modestly in 2024. Analysis by Edahn Golan found total U.S. jewelry market sales +1.4% in 2024 (after unit sales dropped 1.6%)en.israelidiamond.co.il. Finished jewelry rebounded (+2.9% sales) as average price per item jumped +4.5%en.israelidiamond.co.il – consumers bought fewer pieces but more expensive ones. Holiday 2024 saw strong diamond jewelry sales: average retail price rose ~6% to $1,956 as buyers traded up to larger stonesen.israelidiamond.co.il. Retailers increased gross margins (to ~49.6%) and kept inventories leanen.israelidiamond.co.il, helping offset the sluggish volume.
Retail and Corporate Developments
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Pandora (US Market): Danish jeweler Pandora reports the U.S. is now its single largest market (~32% of revenue). CEO Alexander Lacik told Reuters that Pandora’s U.S. comparable sales jumped ~11% in Q1 2025reuters.comreuters.com, and demand for Pandora remains “very strong” despite a generally weak consumer environmentreuters.com. Pandora said it will continue investing in the U.S. even as it warns of potential cost headwinds from proposed U.S. tariffs on its Thai-made goodsreuters.comreuters.com. (Separate Reuters reporting notes Pandora trimmed its 2025 profit margin outlook due to a weaker dollar and tariff risks, but kept 7–8% sales growth guidancereuters.com.)
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Luxury Conglomerates: LVMH reported that its Watches & Jewelry division grew slightly in Q1 2025. Sales in that category were +1% (flat on an organic basis) to €2.48 billionnationaljeweler.com. LVMH CFO Cécile Cabanis noted that U.S. demand for luxury goods (including watches and jewelry) “remained well‑oriented” in Q1nationaljeweler.com. In aggregate, LVMH’s overall revenue slipped ~2% (–3% organic) in Q1, but jewelry/watch was the only division with growthnationaljeweler.com.
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Retail M&A & Expansion: In late 2024, Saks Global (owner of Saks Fifth Avenue) closed its $2.7 billion acquisition of Neiman Marcus Group (Neiman Marcus and Bergdorf Goodman)nationaljeweler.com. The deal creates a combined luxury portfolio (Saks, Neiman, Bergdorf) under one ownernationaljeweler.com. Among independents, Brinker’s Jewelers (Indiana) bought Scottsdale Fine Jewelers (Arizona) in April 2025 to expand its footprintnationaljeweler.com. On the brand front, Barcelona’s PDPaola opened its first U.S. flagship (New York City) in Dec. 2024nationaljeweler.com. The 1,700 sq ft NYC store carries PDPaola’s fashion and fine lines (including 18k gold pieces set with lab-grown diamonds)nationaljeweler.com. PDPaola plans additional U.S. points of sale in 2025nationaljeweler.com.
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Consumer Spending: U.S. jewelry retailers are eyeing Mother’s Day 2025 cautiously. A May 2025 Rapaport report notes retailers finished prepping for Mother’s Day on May 11, with the National Retail Federation forecasting jewelry spending slightly below last year’s levelrapaport.com. (By contrast, the 2024 holiday season saw strong sales gains as noted above.)
Consumer & Product Trends
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Lab-Grown Diamonds: U.S. consumer acceptance of lab-grown gems is rising. A May 2025 Plumb Club survey (reported by Rapaport) found 84% of U.S. jewelry buyers are aware of lab-grown options, up markedly from previous yearsrapaport.com. Nearly half (49%) initially lacked confidence in distinguishing natural vs. synthetic, but this confusion is improving. Notably, 74% of consumers said they would be comfortable receiving lab-grown stones in engagement jewelryrapaport.com. Price remains a top factor: 31% of survey respondents cited lower cost as their main motivation for choosing lab-grown diamondsrapaport.com. At the same time, natural diamond demand has shifted upscale – many buyers who do purchase mined diamonds are opting for higher quality/larger stones (reflected in the higher average prices). Edahn Golan’s analysis observed a clear consumer shift toward “higher-quality, larger diamonds” in 2024en.israelidiamond.co.il, consistent with the jump in average spending per piece noted above.
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Jewelry Market Share: Lab-grown diamond jewelry continues to gain share. According to industry analysis, lab-grown stones captured roughly 14% of the U.S. diamond jewelry market in 2024en.israelidiamond.co.il, up from previous years. Sales of finished lab-grown jewelry surged (units +43%, revenue +31% in 2024)en.israelidiamond.co.il, though price erosion persists (average LGD jewelry price fell ~8%). The gap in price and perceptions between lab-grown and natural stones remains an active issue for retailers.
