The UAE Emerged As A Major Jewellery Exporter

Jewellery And Bijouterie April 12, 2018
Author: Anna Sergeeva
Market Analyst

IndexBox has just published a new report "World: Jewellery - Market Report. Analysis And Forecast To 2025". Here is a summary of the report’s key findings.

China And India Strengthened Their Leadership Position InTerms Of Global Jewellery Consumption

The countries with the highest consumption were China (37%, based USD) and India (19%), followed by the U.S. lagging somewhat behind (4%), the UAE (3%), and Canada (2%), Saudi Arabia (2%), the UK (2%), and Turkey (2%), together comprising almost 72% of global consumption. 

The highest annual rates of growth with regard to jewellery consumption from 2007 to 2016 were recorded in China, with a +10.6% growth. China noticeably strengthened its share in terms of global consumption, from 12% in 2007, to 37% in 2016. India also increased its share over the last eight years by +8 percentage points. By contrast, the U.S. and Indonesia saw their share reduced by – 3 percentage points, each.

In terms of the leading consuming countries, high levels of per capita consumption were recorded in the UAE ($367 per year in 2016), significantly higher than the world average of 15 USD/year. The annual growth of per capita consumption from 2007 to 2016 was the most notable in China, where it expanded at an average rate of +10.4% per year. 

In the medium term, the consumption of jewellery in China will continue to grow. The ongoing urbanisation process, together with the increase in disposable income and the distribution of luxury goods will be the main drivers behind the growth in consumption. Consumption of jewellery in India will also continue to rise as the availability of this product is increasing due to the expansion of the major famous brands on the market. Consumer preferences also undergo a change with the growing number of working women choosing casual jewellery over traditional pieces. 

Production Of Jewellery Remained Stable

Jewellery production stood at to $141.4B in 2016, which was at the level of the year before. This figure reflects total revenue of producers and importers (excluding logistics costs, retail marketing costs, and retailers’ margins, which will be included in the final consumer price). After a significant decline from 2012-2013, production went up by 12%, losing its momentum over the next two years.

China And India Continued To Increase Its Production

China appeared as the key world jewellery producing country, with an output of approx. $45.3B in 2016, accounting for 32% of total global output. The other major producers were India (24%), the U.S. (4%) and Italy (4%). 

In China and India, production levels increased by +9.2% and +6.2% respectively year-on-year from 2007 to 2016, while the U.S. and Italy experienced a modest decline in production value.

Approx. 57% Of Jewellery Produced Worldwide Are Exported

A high trade intensity is typical of the jewellery market: about 57% of global output is made for export. This is due to the substantial distance between main centers of jewellery production and some of the major consuming countries. 

The UAE Emerged As A Major Jewellery Exporter

In 2016, global jewellery export value amounted to $81.1B. After a period of sustained growth in 2007-2012, world exports began to fluctuate significantly, declining in 2013 and 2015. As a result, in 2016, world exports of jewellery increased by 8%, but it never reached the peak of 2014.

In 2016, India ($12.7B), the UAE ($11.9B) and Switzerland ($11.0B) were the main global suppliers of jewellery in the world, with a share of 45% of global exports. 

Among the main exporters, the UAE (+22.4%) demonstrated a significant rate of growth with regard to exports from 2007 to 2016. However, in 2016 (in relation to 2015) the highest growth rate was shown by shipments from India (+ 27%).

Switzerland, The U.S. And The UAE Continue To Lead Global Jewellery Imports

In value terms, total imports of jewellery stood at $65.5B in 2016. The imports dynamic was generally in line with exports: these trade flows globally complement each other. Following the high trade intensity, the share of imports in global consumption amounted to approx. 47%.

Switzerland ($9.2B), the U.S. ($9.1B) and the UAE ($7.3B) were the main consumers of jewellery imports, with a combined share of 48% of total global imports in 2016. But by the end of 2016 the highest growth rate was shown in the UAE (+12%), while Switzerland (-8%) faced negative dynamics from 2015 to 2016.

Source: World: Jewellery - Market Report. Analysis And Forecast To 2025