US personal consumption expenditures (PCE) on jewelry and watches in nominal terms is forecast to grow 5.2% per year through 2025, according to Jewellery & Watches: United States, a report recently released by Freedonia Focus Reports. Advances will stem from rising numbers of new marriages and increasing consumer disposable income, permitting gifting and self-purchasing for jewellery, especially among women. However, further advances will be restrained by ongoing financial challenges faced by young adults and changing consumer preference in favour of purchasing other big-ticket items such as electronics and experiences (e.g., vacations) instead of luxury goods.
Personal spending on jewellery in nominal terms is expected to remain the largest segment throughout the forecast period. In 2021, the segment will be bolstered by the spending of stimulus payments received early in the year, as well as increased spending on bridal jewellery as weddings postponed in 2020 is carried out. Beyond 2021, a continued uptick in the number of new US marriages will bolster demand for jewellery, particularly bridal jewellery, and increases in disposable personal income will support these purchases. jewellery manufacturers are also expected to focus on sustainability, which is becoming an increasingly important factor for jewelry purchasers. Nevertheless, competition from other luxuries will continue to restrain segment growth.
Consumer spending on smartwatches and fitness trackers, as an aggregate, is projected to expand 12% annually to 2025. Smartwatches are expected to see the fastest rate of growth of any product segment as they continue through the growth stage of the product lifecycle curve. However, faster growth will be curtailed over the forecast period as the market matures and the segment continues experiencing downward pricing pressure due to the wide variety of smartwatch makers attempting to seize market share.
These and other key insights are featured in Jewellery & Watches: United States. This report forecasts 2021 and 2025 US PCE on jewellery and watches in nominal US dollars. Total spending is segmented by product in terms of:
- smartwatches and fitness trackers
- traditional watches
To illustrate historical trends, total PCE and the various segments are provided in annual series from 2015 to 2020.
The scope of this report excludes silverware and hollowware; chasing, etching, and engraving; lapidary work; and jewellers’ findings and materials.
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