Industry Updates (Jewellery Market 2026)

🏪 Industry Updates (Jewellery Market 2026)

The jewellery industry in 2026 is going through a high-price, low-volume transformation, where demand is shifting but total revenue is still growing due to expensive gold prices.

📉 1. Demand Drops, But Value Rises

Gold jewellery demand in India has weakened sharply in volume terms, but spending remains strong.

• Jewellery demand fell around 19% in volume in Q1 2026

• However, spending hit record highs due to expensive gold

• Consumers are buying less quantity but higher value pieces (The New Indian Express)

👉 Meaning:
People are buying fewer ornaments, but paying more per purchase.

🔻 2. Import Duty Hike Impacts Market

A major policy change has affected the entire jewellery ecosystem.

• Gold import duty increased from 6% to 15%

• This caused a sharp rise in domestic prices

• Industry reports show demand dropping significantly, with retailers seeing weak footfall (The Times of India)

👉 Impact:

• Lower retail sales

• Reduced fresh jewellery purchases

• Shift toward exchange-based buying

🔄 3. Exchange & Old Gold Recycling Boom

One of the biggest structural changes in the industry:

• 40%–60% of jewellery transactions now involve old gold exchange

• Customers prefer upgrading old ornaments instead of buying new ones

• This helps retailers maintain revenue despite lower new demand

👉 Industry is becoming:
Exchange-driven instead of fresh-purchase driven

💰 4. Jewellery Companies Still Growing Revenue

Even with lower volume sales, big jewellery brands are performing well financially.

• Revenue growth remains strong (20–50% range in leading companies)

• Profit margins fluctuate due to gold price volatility

• Growth is driven by higher ticket sizes and premium designs (The Economic Times)

👉 Key point:
Profit is rising because gold is expensive, not because more jewellery is sold.

🪙 5. Investment Shift Continues

Gold is increasingly being treated as a financial asset.

• More demand for coins, bars, and ETFs

• Investment demand is now nearly equal to jewellery demand

• Buyers see gold as a safe hedge against inflation and uncertainty (World Gold Council)

🏬 6. Organised Retail Expanding Despite Pressure

Large jewellery brands are expanding aggressively:

• New store openings continue across India and overseas

• Online and digital gold sales are growing

• Organised players are gaining share from small retailers

🔮 Conclusion

The jewellery industry is not shrinking—it is transforming:

• Less traditional jewellery buying

• More exchange-based transactions

• Strong investment demand growth

• Higher revenue but lower volume sales

👉 Final takeaway:
Gold is no longer just jewellery—it is becoming both a fashion product and a financial asset.