US Consumer Spending on Jewelry & Watches to Grow on Income Gains, Rising Number of New Marriages

Smartwatches to see fastest growth among segments

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Jul 02, 2021, 10:11 ET

CLEVELAND, July 2, 2021 /PRNewswire/ -- US personal consumption expenditures (PCE) on jewelry and watches in nominal terms is forecast to grow 5.2% per year through 2025, according to Jewelry & Watches: United States, a report recently released by Freedonia Focus Reports. Advances will stem from rising numbers of new marriages and increasing consumer disposable income, permitting gifting and self-purchasing for jewelry, especially among women. However, further advances will be restrained by ongoing financial challenges faced by young adults and changing consumer preference in favor of purchasing other big-ticket items such as electronics and experiences (e.g., vacations) instead of luxury goods.

Personal spending on jewelry in nominal terms is expected to remain the largest segment throughout the forecast period. In 2021, the segment will be bolstered by spending of stimulus payments received early in the year, as well as increased spending on bridal jewelry as weddings postponed in 2020 are carried out. Beyond 2021, a continued uptick in the number of new US marriages will bolster demand for jewelry, particularly bridal jewelry, and increases in disposable personal income will support these purchases. Jewelry manufacturers are also expected to focus on sustainability, which is becoming an increasingly important factor for jewelry purchasers. Nevertheless, competition from other luxuries will continue to restrain segment growth.

Consumer spending on smartwatches and fitness trackers, as an aggregate, is projected to expand 12% annually to 2025. Smartwatches are expected to see the fastest rate of growth of any product segment as they continue through the growth stage of the product lifecycle curve. However, faster growth will be curtailed over the forecast period as the market matures and the segment continues experiencing downward pricing pressure due to the wide variety of smartwatch makers attempting to seize market share.

These and other key insights are featured in Jewelry & Watches: United States. This report forecasts to 2021 and 2025 US PCE on jewelry and watches in nominal US dollars. Total spending is segmented by product in terms of:

jewelry
smartwatches and fitness trackers
traditional watches

To illustrate historical trends, total PCE and the various segments are provided in annual series from 2015 to 2020.

The scope of this report excludes silverware and hollowware; chasing, etching, and engraving; lapidary work; and jewelers' findings and materials.

More information about the report is available at:
https://www.freedoniafocusreports.com/Jewelry-Watches-United-States-FF90015/?progid=91541

About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Consumer Goods reports can be purchased at Freedonia Focus Reports or MarketResearch.com.

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