The gemstones market is expected to expand at a compound annual growth rate (CAGR) of 6.30% to reach $ 101.01 billion by 2032, the forecast period, according to new market intelligence by Credence Research.
The industry has witnessed transformative changes in recent years, with sustainability concerns, transparency initiatives, and the emergence of lab-grown alternatives reshaping traditional market dynamics.
North America currently holds the dominant position in the global gemstones market, capturing 36.59% of total revenue share in 2024, driven by high consumer purchasing power and preference for certified, ethically sourced gemstones.
However, the Asia-Pacific region is emerging as the fastest-growing market, propelled by rapid urbanisation, rising disposable incomes, and the cultural significance of gemstones in countries such as China, India, and Japan.
The industry landscape features a mix of established mining giants like De Beers Group, PJSC ALROSA, and Rio Tinto Diamonds, alongside emerging synthetic gemstone producers and specialised retailers who are leveraging vertical integration and technological innovation to maintain competitive advantages.
Growing awareness of environmental and social issues has fundamentally transformed consumer purchasing behaviour in the gemstones market, with buyers increasingly prioritising transparency and ethical sourcing practices.
This shift is particularly pronounced among millennial and Gen Z consumers who seek luxury products that align with their values regarding sustainability and social responsibility.
Companies are responding by implementing rigorous traceability systems and obtaining certifications such as the Kimberley Process to verify ethical origins.
Gemfields’ expansion of ethical sourcing initiatives in March 2024 exemplifies this trend, as the company enhanced supply chain transparency to build consumer trust and differentiate its coloured gemstones offering.
Retailers and brands that can demonstrate authentic provenance through blockchain technology and third-party certification are gaining significant market share, particularly in developed markets where consumers are willing to pay premium prices for responsibly sourced gemstones.
The lab-grown gemstone segment has emerged as a transformative force in the industry, offering chemically identical alternatives to natural stones at significantly lower price points while eliminating environmental concerns associated with traditional mining.
The global lab-grown diamond market was valued at $ 22.79 billion in 2023 and is projected to reach $ 74.45 billion by 2032, exhibiting a CAGR of 14.11%, substantially outpacing the natural gemstone segment.
Technological advancements in chemical vapour deposition (CVD) and high pressure high temperature (HPHT) manufacturing processes have enabled producers to create high-quality synthetic gemstones within weeks rather than the millennia required for natural formation.
Major industry players including De Beers, Charles and Colvard, and Swarovski Group have launched dedicated lab-grown collections, legitimising the segment and accelerating consumer acceptance.
This democratisation of luxury is particularly appealing to younger consumers seeking affordable yet authentic gemstone jewellery for engagements, fashion, and personal expression.
The digital revolution has fundamentally altered the gemstone buying experience, providing consumers with unprecedented access to certified gemstones through online platforms that offer transparent pricing, detailed product information, and virtual try-on features.
E-commerce platforms have eliminated traditional geographic barriers, enabling direct-to-consumer business models that reduce intermediary costs and improve price competitiveness.
Social media and influencer marketing have become powerful drivers of consumer engagement, with brands leveraging Instagram, YouTube, and TikTok to showcase gemstone jewellery and educate consumers about quality, certification, and styling.
The Covid-19 pandemic accelerated this digital transition, as temporary retail closures forced both established jewellers and gemstone dealers to develop robust online sales channels.
Advanced technologies including augmented reality for virtual try-ons, AI-driven personalisation, and blockchain-based authentication are enhancing consumer confidence and expanding the addressable market beyond traditional luxury jewellery retail environments.
The gemstones industry faces significant supply chain obstacles stemming from the fragmented nature of sourcing, particularly in the coloured gemstone segment where approximately 80% of the $ 3.2 billion market originates from small-scale artisanal mining communities.
Poor record-keeping practices, excessive intermediaries inflating prices, and hidden treatments that alter stone qualities create substantial transparency challenges throughout the value chain.
Geopolitical instability in resource-rich regions including Africa and Russia further complicates material sourcing, with trade restrictions and sanctions impacting availability and causing cost increases.
Transportation bottlenecks, port congestion, and natural disasters add additional layers of complexity and unpredictability to global supply networks.
The absence of standardised certification protocols across different gemstone hubs such as Antwerp for diamonds and Bangkok for coloured stones enables synthetic stones to infiltrate markets, undermining consumer confidence.
Despite promising technological solutions like blockchain-based tracking systems, only 12% of coloured gemstone traders have adopted such platforms due to technical barriers and implementation costs.
Gemstones, particularly high-value precious stones, function as luxury goods whose demand exhibits significant sensitivity to macroeconomic conditions and consumer confidence levels.
Economic downturns, inflation, and currency fluctuations directly impact consumer discretionary spending on jewellery and investment-grade gemstones, creating revenue volatility for industry participants.
The rapid growth of lab-grown alternatives has introduced substantial pricing pressure on natural gemstone segments, with synthetic diamonds selling for approximately 10% of equivalent natural stone prices, fundamentally altering value perceptions.
This pricing disruption threatens traditional business models built around scarcity and provenance premiums associated with natural gemstones.
Market fragmentation across different gemstone types, qualities, and origins creates inconsistent pricing structures that confuse consumers and complicate valuation processes.
Investment-grade gemstones face additional challenges from competing asset classes including precious metals, cryptocurrency, and traditional financial instruments that offer greater liquidity and transparent pricing mechanisms.