Global jewellery industry to grow to USD 280bn by 2015: KPMG

Kolkata, Dec 17 (UNI) Gem and Jewellery market in India and China will emerge as big markets equivalent to US by 2015, according to a KPMG and Gem&Jewellery Export Promotion Council study.

The study revealed that the global jewellery industry has the potential to grow to USD 280 billion by 2015 at a CAGR of 6.7 per cent.

However, it mentioned that India's share of diamond processing industry pie would drop from 57 per cent now to around 49 per cent (in value terms) by 2015.

The Gems and Jewellery Export Promotion Council(GJPC) of India has recently released this report by KPMG "The Global Gems and Jewellery: Vision 2015: Transforming for Growth".

The study gives insight on the current size and scale of the value chain, identifying trends that will have an impact on the future and developing a roadmap for various players given the expected changes in the environment.

It indicates that in future, the global jewellery industry would see sluggish growth of jewellery sales.

Gem&Jewellery Export Promotion council Chairman Sanjay Kothari told UNI that ''I urge the entire Industry and trade organisations worldwide such as World Federation of Diamond Bourses, International Diamond Manufacturers Association, Jewellers of America etc to play a pivotal role as facilitators and work in synergy for betterment of this Industry." The report said global jewellery sales is expected to grow at 4.6 per cent year-on-year to touch USD 185 billion in 2010 and USD 230 billion in 2015. Palladium is expected to establish itself as an alternative metal for jewellery fabrication, while gold and diamond jewellery will continue to dominate the market together, accounting for about 82 per cent. Diamond jewellery would be the slowest growing segment at a CAGR of 3.3 per cent.'' The industry would have to focus on the growing demand for jewellery as a category and strengthen industry-level capabilities, it said.

The US is the world's largest market for jewellery and accounted for an estimated 31 per cent of world jewellery sales in 2005. India and China are the emerging centres of jewellery consumption and have increased their share of the pie to 8.3 per cent and 8.9 per cent, respectively(2005).

KPMG has chalked out certain growth strategies for the industry like developing demand for jewellery as a category, identifying new products and consumer segments, re-establish value proposition in developed markets and identify future markets.

The Gem&Jewellery Export Promotion Council is an all India apex body representing 6500 gem&jewellery traders from India.

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