Introduction:

The latest data from Tenoris, a leading retail data analytics firm, reveals that the U.S. jewelry market is not just participating in the holiday surge it is leading the charge.

In October, sales by specialty jewelers grew a formidable 11.6%, a figure that far outpaces general retail growth and marks a solid, confident start to the holiday shopping season. But the real story lies beneath this headline number. It's a tale of premiumization, emotional spending, and strategic resilience in the face of global economic headwinds.

This comprehensive analysis will dissect the key trends, explore the underlying market forces, and provide a strategic roadmap for jewelry retailers and sellers looking to capitalize on this momentum well into 2026. For businesses ready to act, the first step is to register as a seller on CaratX and access a global network of buyers.

The Macro View - Premiumization as the Defining Retail Trend

The most significant takeaway from the Tenoris report is not that consumers are buying more jewelry, but that they are buying better jewelry. The 15% year-on-year increase in the average retail price is a powerful indicator of the "premiumization" trend in full effect.

What is Premiumization -

Premiumization is a market strategy where consumers consciously choose to trade up to higher-value, higher-quality, and often higher-priced goods. This behavior is typically driven by several factors:

The Shift from Consumption to Investment: In an era of economic uncertainty and high inflation, consumers are more thoughtful with their disposable income. Rather than spending on fleeting, fast-fashion items, they are allocating funds toward goods that hold intrinsic, emotional, and even financial value. A piece of fine jewelry, especially one featuring natural diamonds, is perceived as a legacy item a store of value that can be appreciated for a lifetime and passed down through generations.

The Quest for Authenticity and Craftsmanship: Modern consumers, particularly Millennials and Gen Z, are deeply influenced by brand stories and artisanal quality. They seek out products with a provenance and appreciate the skill involved in creating a beautiful, finished piece of jewelry. This drives them toward pieces with superior design and craftsmanship, which command a higher price point.

The "Treat Yourself" Mentality: Post-pandemic, there remains a strong cultural emphasis on self-care and rewarding personal milestones. This "self-gifting" behavior is a major driver during the holiday season, as individuals feel justified in investing in a significant piece for themselves.

Category Deep Dive -

The overall growth is impressive, but a granular look at category performance reveals where the greatest opportunities lie. The finished jewelry segment was the undisputed champion, with sales revenue jumping 14%.

The Meteoric Rise of the Fashion Necklace -

Once considered a supplementary accessory, the fashion necklace has been reinvented as a cornerstone of the modern jewelry wardrobe. Its performance in October was nothing short of spectacular:

Revenue Growth: +34.5%

Average Spend Per Item: +39%

Unit Sales: Slight Decline

This inverse relationship between units and revenue is the quintessential proof of premiumization. Consumers are bypassing simple, trend-driven pieces in favor of bold, statement-making designs. They are purchasing one exquisite, handcrafted necklace featuring substantial gemstones or intricate metalwork instead of several cheaper alternatives.

The Natural Diamond Dominance: A particularly fascinating insight is that 92% of the fashion necklaces sold featured natural diamonds. This is a critical data point for the industry. Despite the significant market share gained by lab-grown diamonds in recent years, the natural stone maintains an unshakeable position for certain product categories and consumer mindsets.

According to a study on consumer behavior by the Gemological Institute of America (GIA), natural diamonds continue to be associated with unique emotional attributes such as rarity, authenticity, and enduring value, making them the preferred choice for meaningful, self-purchased luxuries and statement gifts. For retailers, showcasing a diverse fashion jewelry collection anchored by natural diamonds is a proven strategy.

Finished Engagement Rings -

The engagement ring category remains the bedrock of the jewelry industry. Its consistent performance, even during economic downturns, underscores its status as a non-negotiable, milestone-driven purchase. The strong demand for finished engagement rings highlights several consumer preferences:

The Desire for a Cohesive Vision: Consumers increasingly prefer to see the complete product the diamond set in its final setting rather than conceptualizing it from a loose stone.

Trust in Expert Design: A finished ring represents the expertise of the designer and manufacturer, assuring the buyer of its structural integrity and aesthetic harmony.

The Diamond Market's Tale of Two Realities -

The broader diamond industry has faced a challenging year, with volatility in the rough diamond market and shifting supply dynamics. However, the finished diamond jewelry segment has demonstrated remarkable resilience, acting as a stabilizing force.

Finished Diamond Jewelry Revenue: +9%

Average Spend Per Item: +15%+

This divergence highlights a crucial insight: the value is in the finish. Consumers are less concerned with the technical nuances of the loose stone market and more invested in the final, wearable work of art. The design, branding, and emotional appeal of a completed piece allow it to transcend the commodity-level fluctuations of its raw materials.

The Cost Equation - Tariffs, Inflation, and Strategic Absorption

A critical, behind-the-scenes factor impacting the entire industry is the rising cost of goods. The Tenoris report notes a 17% year-on-year increase in the cost of finished jewelry, with diamond jewelry seeing an even steeper jump of over 25%.

The Primary Catalyst: U.S. Tariffs on Indian Imports

The single largest contributor to this cost inflation is the U.S. tariff on diamond and jewelry imports from India, currently levied at a staggering 50%. The context for this is essential.

India is the world's dominant hub for diamond cutting and polishing, handling approximately 90% of the global supply of polished diamonds by volume, according to the World Diamond Council. This tariff, therefore, does not target a minor player but strikes at the very heart of the industry's supply chain.

The Industry's Strategic Response:

In a highly competitive market, simply passing a 25-50% cost increase onto the consumer is not a viable option. The report indicates a strategic and collective response from the industry: absorption.

Manufacturers, wholesalers, and retailers are collectively absorbing a significant portion of these increased costs to protect consumer demand and maintain market competitiveness. This means thinner margins across the value chain, but it also demonstrates a long-term view focused on market stability and customer retention. This is where efficient sourcing becomes a critical competitive advantage. Platforms like the CaratX marketplace allow buyers to connect directly with a global network of sellers, optimizing supply chains and mitigating some of these cost pressures.

Strategic Implications and a Roadmap for Sellers -

Curate a Premium, Finished Jewelry Assortment: Prioritize depth and quality in your finished goods inventory. Consumers are seeking designer necklaces, completed engagement rings, and statement pieces. Ensure your collection tells a story of craftsmanship and permanence.

Champion the Natural Diamond Narrative: While lab-grown has its place, the data confirms the unwavering appeal of natural diamonds, especially in key growth categories like fashion necklaces. Educate your customers on the unique value, rarity, and emotional resonance of natural stones. Source your core inventory from trusted suppliers, such as the natural diamonds collection on CaratX.

Embrace the Statement-Making Trend: The success of fashion necklaces and tennis bracelets indicates a demand for bold, versatile pieces that can define a personal style. Expand your offerings in these categories.

Optimize Your Sourcing for a Tariff-Heavy Landscape: To protect your margins, diversifying your supply chain is no longer an option, it's a necessity. Leverage B2B marketplaces to find competitive pricing and new supplier partners outside of the most heavily tariffed corridors.

Conclusion:

The holiday season of 2025 has laid bare the new fundamentals of the jewelry market: consumers are emotionally driven, value-quality over quantity, and are willing to invest in pieces that last. The challenge for sellers is to meet this demand with the right products while navigating a complex and costly supply environment.

The solution lies in leveraging global reach and digital efficiency. The CaratX marketplace is designed to be your strategic partner in this new era. By registering as a seller, you gain immediate access to:

A Global Buyer Network: List your finished jewelry and reach B2B and B2C buyers in 18+ international countries, diversifying your customer base and reducing reliance on any single market.

Efficient Inventory Sourcing: Find the perfect gemstones and components to build your premium collections, often at more favorable price points.

A Dedicated Sales Channel: Launch your products with a clear understanding of our pricing and launch strategy, designed to get your business online and growing quickly.

The trends are clear, the demand is present, and the platform is ready. The only question that remains is whether your business is positioned to capitalize.

Frequently Asked Questions (FAQs)

With lab-grown diamonds being more affordable, why did 92% of fashion necklaces sold feature natural stones? This statistic underscores the complex emotional drivers behind jewelry purchases. For a self-purchased statement piece or a significant gift, the perceived rarity, unique geological history, and enduring value of a natural diamond often outweigh the cost savings of a lab-grown alternative. It becomes less about the carat weight and more about the meaning and longevity of the investment, a concept well-understood in the fine jewelry collection market.

How can small, independent jewelers compete with large chains given these rising costs? Agility and curation are the key advantages for independents. While large chains operate on volume, small jewelers can thrive by offering a highly curated, unique selection of finished jewelry that tells a compelling brand story. By using a B2B marketplace like CaratX, they can source distinctive inventory without the massive capital outlay of a traditional trade show, allowing them to offer products that large chains do not carry.

Besides necklaces and engagement rings, what other categories show promise? The report specifically called out tennis bracelets as a category with strong performance in both units and demand. Other categories likely to benefit from the statement trend include signature cocktail rings and curated earring stacks. Exploring a diverse range of gemstones for color-driven designs can also capture a growing consumer interest in personalization and uniqueness.

Sources & Citations

Tenoris. "U.S. Specialty Jeweler Sales Report: October 2023 Performance Metrics." [Data sourced from proprietary retail tracking].

McKinsey & Company. "The state of fashion: Jewellery." [Referenced for broader context on premiumization trends in luxury goods].

Bain & Company. "Global Diamond Industry Report." [Referenced for analysis of the divergence between rough and polished diamond markets].

Register as a seller on CaratX today and transform these market insights into your business growth. www.caratx.com/register