U.S. Retail Diamond Jewelry Market Grows for 5th Consecutive Year

Retail sales of diamond jewelry in the U.S. increased by 6.1 percent in 2006. U.S. retail sales for the diamond jewelry category, representing over 50 percent of sales around the world, totaled $35.2 billion in 2006, a $2 billion increase over 2005. Average tickets grew 9.1 percent, though transactions slipped by 2.7 percent.

According to the Diamond Information Center (DIC) at JWT, who released the 2006 figures Thursday, strategic marketing initiatives helped make 2006 a robust year for diamond jewelry sales.

“2006 was a challenging year in which the diamond industry made great strides. Manufacturers created innovative products that increased consumer demand and retailers presented more appealing messages than ever,” said Richard Lennox, Director-in-Charge of the Diamond Marketing and Advertising Group at JWT.

“Amidst a barrage of publicity, the industry seized the opportunity to tell consumers about our zero-tolerance policy on conflict diamonds under the Kimberley Process and System of Warranties,” Lennox added.

Last year marked the launch of one of the most successful initiatives, Journey diamond jewelry. Journey graduated diamond jewelry sales grew 41 percent in six months. This translates to over one million pieces of Journey diamond jewelry sold in the second half of 2006. In fact, Journey surpassed sales of the popular Past, Present and Future three-stone diamond jewelry concept.

Sales of three-stone diamond jewelry increased 16 percent over 2005. This sector represents almost $3.7 billion in retail value, the DIC said. The average price of these pieces, which commemorate a couple’s past, present, and future rose 14 percent over the previous year.

The diamond right hand ring saw double digit growth for the third straight year, increasing by 10 percent. Although some women buy these rings for themselves, it is men who buy 69 percent of them as a gift, often with significant involvement of the recipient. Christmas was prime selling season for these rings.

Holiday sales this past season were valued at $5.5 billion, a 9 percent increase over 2005. One in four pieces of non-bridal diamond jewelry is acquired for the holidays. The most popular items were necklaces, which grew 19 percent over 2005, in large part due to the successful launch of Journey.

In 2006, the total retail value for the diamond engagement ring category grew to $6.2 billion, exceeding 2005’s results by 8 percent. While the number of brides has been relatively constant, the category is growing due to increases in average price. Currently, diamond engagement rings have reached their highest average price at $3,200. Just five years ago, the average price was $2,633.