Editor’s Note
This article summarizes key findings from a recent survey by Yano Research Institute on Japan’s domestic jewelry market, highlighting segment trends, competitive dynamics, and future outlook.
Yano Research Institute Ltd. (President: Takashi Mizukoshi) has conducted a survey on the domestic jewelry market in Japan, revealing trends by product segment, market entrant activities, and future prospects.
The domestic jewelry retail market size for 2023 is forecasted to be 1.0423 trillion yen, 101.9% of the previous year’s figure.
In May 2023, COVID-19’s classification was downgraded to a Class 5 infectious disease. Consequently, daily life has returned after three years of self-restraint due to movement restrictions, leading to an increase in outings. In the domestic jewelry market, a rebound in consumption, particularly among affluent consumers emerging from the period of self-restraint, is evident, indicating a return to pre-pandemic conditions. Furthermore, with the lifting of the ban on group tours from China since August 2023, inbound demand (from foreign visitors to Japan) has also recovered, naturally leading to an upward trend in sales for jewelry companies.
The domestic jewelry retail market size for 2024 is forecasted to slightly decrease from 2023 to 1.0329 trillion yen, 99.1% of the previous year’s figure. Amid the ongoing price increases for many consumer goods, demand for jewelry, which is not a necessity, is expected to stabilize, and the overall market momentum is anticipated to enter another period of stagnation.
Russia’s invasion of Ukraine in February 2022 has had a significant impact on the jewelry industry. One major effect is the surge in material prices due to supply shortages. With reduced material supply from Russia, a major diamond producer, diamond prices rose sharply from 2022 to 2023.
Furthermore, prices for other jewelry materials like platinum and palladium, for which Russia is a major supplier, have also increased.
Additionally, gold, considered a “safe asset,” is being favored amid concerns about a global economic slowdown, leading to a rapid rise in the price of gold bullion.
Moreover, on top of rising material costs, the weak yen has caused imported material prices to jump even higher. Increases in energy, labor, consumable, and logistics costs across the board have made price hikes for jewelry items particularly pronounced.
- Survey Period: September 2022 to August 2023
- Survey Subjects: Jewelry specialty store chains, department stores, watch & jewelry stores, companies from other sectors (like kimono fabric retailers) entering the jewelry market, imported jewelry brand companies, etc.
- Survey Method: Combined use of direct interviews (including online) by our specialist researchers, telephone hearings, and mailed questionnaires.
Definition of the Domestic Jewelry Retail Market in this Survey: Jewelry in this survey primarily refers to ornaments made from materials like gold or platinum, using diamonds, precious stones, pearls, etc. It includes jewelry watches and some items made from silver or semi-precious stones. The market size is calculated based on retail value.