Digital but personal: New report highlights key trends shaping gem industry

Jewel360, the all-in-one cloud-based point-of-sale (POS) platform for jewellery retailers, has released its State of the Jewelry Industry Report, revealing key trends shaping independent jewellery businesses—from the rise of social media influence and customization to changing diamond preferences and growing industry challenges.

The report found that while the customer journey is becoming more digital, the final purchase decision remains highly personal. Ninety per cent of jewellers surveyed say social media influences what customers request, yet 94 per cent still close nearly every sale face-to-face.

“The customer journey is becoming increasingly digital, but the purchase experience remains deeply personal,” says Nick Gurney, general manager of Jewel360. “Consumers are discovering styles and trends online, but turning to independent jewellers for custom work and trusted advice.”

The report combines transaction data with insights from independent jewellers. The jewellery survey primarily involved U.S. respondents, with a few from Canada. Most transaction data came from U.S. jewellers, but a small portion also included data from Canadian and Caribbean jewellers. 

Key findings:

Customization and classic styles

Consumer preferences continue to evolve, but traditional favorites remain strong. Ninety-four per cent of independent jewellers report yellow gold as the most popular metal choice, while 90 per cent say custom requests are increasing. Of those custom projects, 65 per cent involve heirloom redesigns, as customers transform inherited pieces into new designs.

Lab-grown diamonds

Lab-grown diamonds are becoming a major part of the bridal market. Three-quarters of bridal retailers expect lab-grown diamonds to represent more than half of their engagement ring sales this year. Today, 85 per cent of jewellery stores carry both lab-grown and natural diamonds, while only 9 per cent remain natural-only.

Rising costs

The biggest challenge facing jewellers is rising costs. Seventy-six percent of respondents cite increasing prices for metals and gemstones as their top concern heading into 2027. Other challenges include staffing (38 per cent), economic uncertainty (37 per cent), maintaining fresh inventory (27 per cent), and tariffs and supply chain disruptions (23 per cent).

Despite these pressures, independent jewellers remain optimistic. Eighty-four percent of surveyed retailers expect business growth this year, including many long-established stores with more than 40 years in operation.

Fewer sales, higher ticket values

Transaction data shows customers are making fewer purchases but spending more. Comparing Q1 2025 to Q1 2026, transaction volume declined 15 per cent, while average ticket value increased 26 per cent to $322.

Jewel360 will discuss these trends and more at its second Retail Jewel Summit on August 5, a virtual event for independent jewellers, industry partners, and experts to explore the future of jewellery retail and the latest innovations.