Loose Diamond Sales Decline In The US, Hurting Indian Exports
US specialty jewellery retailers reported a strong October, with finished jewellery sales growing by 11.6 per cent year-on-year, driven by higher average prices as consumers opened their wallets ahead of the festive season, finds a report by market-analytics firm Tenoris LLC, led by industry analyst Edahn Golan.
Chennai: While the jewellery sales in the US were upbeat in October with double-digit growth, sales of loose natural diamonds witnessed a decline due to higher tariffs. The US festive season this year will be a difficult time for Indian cut and polished exporters.
US specialty jewellery retailers reported a strong October, with finished jewellery sales growing by 11.6 per cent year-on-year, driven by higher average prices as consumers opened their wallets ahead of the festive season, finds a report by market-analytics firm Tenoris LLC, led by industry analyst Edahn Golan.
Revenue from finished jewellery rose by 14 per cent, bolstered by strong demand for fashion necklaces with almost 92 per cent containing natural diamonds, and finished engagement rings.
Revenue in the fashion necklace category also jumped 34.5 per cent while average spend per item surged by 39 per cent, even as unit sales declined.
Diamond-set jewellery also performed well with revenues rising 9 per cent and average spend per item increased by more than 15 per cent year-on-year.
However, the story for loose natural diamonds is less upbeat. Revenues declined 0.5 per cent year-on-year in October, with unit sales falling by more than 10 per cent.
According to the report, cost pressures are mounting as finished-jewellery costs rose 17 per cent in October, while costs for diamond jewellery increased by over 25 per cent year-on-year, partly due to tariffs and rising gold prices. The 50 per cent tariff on Indian-origin jewellery imported into the US is being absorbed partially by the supply chain for now, but Tenoris warns consumer prices may rise further.
With demand for finished pieces robust and holiday shopping underway, the outlook remains positive, yet the divergence between finished jewellery and loose diamonds signals shifting consumer preferences and pressures in the supply chain.
“The decline in the sales of loose diamonds is not good news for Indian exporters. For jewellery, the casting is done in the US. The exports in October have been quite slow and could be down by 30 per cent during this festive season in the US,” said Vipul Shah, former chairman, Gems and Jewellery Export Promotion Council.
The overall gross exports of cut and polished diamonds from India was down by 9.57 per cent both in value and volume terms between April and September 2025 as compared to the same period of previous year.
