Companies in this industry manufacture jewelry and items such as compacts and cigarette cases from precious metals, gemstones, and other materials. Major companies include US-based James Avery Craftsman, Richline Group, and Tiffany, as well as Bulgari (Italy), Cartier (France), D Swarovski & Co (Austria); Gitanjali Gems (India), Kingold Jewelry (China), and PANDORA (Denmark).
Worldwide, jewelry sales are expected to exceed $285 billion by 2020, according to McKinsey & Company, up from an estimated $170 million in 2013. The US, China, and India are the largest jewelry markets. Demand for diamond and gold jewelry in China and India will fuel much of the industry's growth over the next several years.
The US jewelry manufacturing industry includes about 2,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $7.5 billion.
Demand for jewelry is driven by personal income and world gold and silver prices. The profitability of individual companies depends on efficient operations and cost controls. Large companies have advantages in offering a broader product line to meet consumers' changing desires, and in efficient production and distribution operations. Small companies can compete effectively by offering individualized and unique product lines. The US industry is concentrated: the 50 largest companies account for about 70% of industry revenue. About 90% of US jewelry manufacturers have fewer than 20 employees.
US jewelry manufacturers must compete on price with cheaper overseas producers. Transitioning to a production method that includes...