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What is the United States market-size (TAM) for the Fine Jewelry industry?
Hello! Thank you for your question on the market size for fine jewelry industry in the United States. The short answer is that the estimated jewelry sales was $70 billion in the year 2016 and is expected to increase to $71.7 billion in 2018 and $73.4 billion by 2020. You will find a deep dive of my research and methodology below.
METHODOLOGY
I searched through trusted media sites, corporate websites, and industry reports for the information on the total available market for the fine jewelry industry. I found the estimated jewelry sales from the year 2014 through to 2016. I used the top jewelry brands in the United States to help in estimating the future sales based on their rate of growth. After that, I calculated the compound annual growth rate of the jewelry industry in the United States based on the growth rate of jewelry sales from the top jewelry company. This made it possible to triangulate the expected total available market for jewelry in the United States from the year 2017 to 2020.
TOTAL AVAILABLE MARKET FOR JEWELRY
In the year 2014, the fine jewelry sales in the United States was $68.8 billion. In 2015, the sales dipped a little to $66.5 billion but increased to an estimated $70 billion in 2016.
One of the major jewelry companies in the United States is Harry Winston Diamond Corporation. In the year 2015 and 2016, Harry Winston's sales were $916 million and $721 million respectively. Its estimated sales for the years 2018, 2019, and 2020 are $935 million, $926 million, and $973 million respectively.
From the information on Harry Winston in the years 2015 and 2020, we can calculate the compound annual growth rate (CAGR) of the jewelry market since the market does not have a steady growth rate and fluctuates. CAGR is helpful in determining the annual growth rate of a fluctuating market.
CAGR=((Ending value/starting value))ˆ(1/period)-1
Starting value (sales in 2015)= $916 million
Ending value (estimated sales in 2020)= $973 million
Period = 5 years
The CAGR= (($973 million/$916 million))ˆ(1/5)-1
=0.0121 or 1.21%
Therefore, the annual growth rate of the fine jewelry industry market in the United States is 1.21%
Considering that the fine jewelry sales in the United States in 2016 was estimated to be $70 billion, the sales in 2017 would be $70.85 billion based on the calculated annual growth rate. The projected sales are $71.7 billion for 2018, $72.57 billion for 2019, and $73.4 billion for the year 2020.
There is a general growth in the jewelry market in the world, and the shift to e-commerce is fueling the increase. Therefore, the market in the United States is also likely to increase. Research reveals that the jewelry industry is the fastest growing in the world under the personal accessories industry and had a global growth of 3% between the year 2015 and 2016.
CONCLUSION
In conclusion, there is a great market for fine jewelry in the United States. The market size for the year 2016 was $70 billion, and it is projected to increase to $71.7 billion and $73.4 billion in 2018 and 2020 respectively.
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