Global jewellery sales have the potential to grow by almost 7 percent annually to reach $280 billion by 2015, spurred by India and China, an industry study said on Tuesday.
The global gems and jewellery industry is estimated at $146 billion at retail prices in 2005, the joint study by the Gems and Jewellery Export Promotion Council and consulting firm KPMG said. The industry has grown at an average annual rate of 5.2 per cent since 2000.
"India and China are the emerging centres of jewellery consumption and have steadily increased their share," the report said, putting India's share of the global market at 8.3 percent and China's at 8.9 percent in 2005. The study said current projections were for global jewellery sales to grow at 4.6 per cent annually to $185 billion in 2010 and $230 billion by 2015.
But with steps like identifying new jewellery products and consumer segments, reducing the cost of financing and maximising potential in emerging markets, the industry had the potential to grow to $280 billion by 2015.
"This would translate to a annual growth of 6.7 percent," Neelesh Hundekari, a KPMG official, told Reuters. The United States is the world's largest market for jewellery, accounting for an estimated 31 per cent of sales in 2005. Eight key markets account for 75 percent of global sales.
"Palladium is expected to establish itself as an alternative metal for jewellery fabrication, while gold and diamond jewellery will continue to dominate the market together, accounting for about 82 per cent of the market share," said the study.
The study said growth in the industry would be slow in comparison to watches and perfumes or luxury apparel, which are expected to grow at 10-15 per cent over the next seven years.
DIAMOND SHIFT India is the world's biggest exporter of cut and polished diamonds, with Mumbai being one of the main centres for the international diamond trade.
The report said the structure of the diamond-processing industry would change considerably, with India's share likely to drop to 49 percent in value terms by 2015 from 57 percent currently.
The industry is one of India's top foreign exchange earners - generating around $17 billion last year - and employs around 1 million people including traders, cutters and polishers. By 2015 China will emerge as a strong player with a 21.3 percent share of diamond processing, the study said.
By 2015 around nine per cent of the world's diamonds, in volume terms, were expected to be processed locally by mining countries, with Angola, Namibia and Botswana emerging as profitable centres in Africa.
Comments
Comments are closed.