Annual growth of 3.1 percent is expected.
U.S. demand for jewelry and watches is likely to hit $90 billion in 2020, up from $77.2 billion in 2015, according to a new report.
If that figure is achieved, it would represent annual growth of 3.1 percent, says the Freedonia Group, a Cleveland, OH-based industry market research firm.
Fine jewelry sales will be driven by an increase in the number of new marriages.
But the company sounds a note of caution, explaining that “ongoing financial challenges faced by young adults – coupled with their growing preference for purchasing other big-ticket items such as electronics and experiences (eg, vacations) – will restrain further advances in personal spending on these accessories.”
That line of thought echoes recent concerns that millennials might not be the enthusiastic buyers of diamond jewelry that their parents and grandparents were.
De Beers, however, insisted in a recent report that millennials “do express strong desire for diamonds when they reach financial and demographic maturity.”
Read more from the Freedonia Group