U.S. Jewelry Industry: Still Sparkling

The US jewelry industry was a $73 billion industry in 2023, accounting for 21% of the global jewelry industry. Growth is coming from a number of angles including the increasing popularity and acceptance of bling jewelry by celebrities which has created a major opportunity for new jewelry entrants and as well as existing industry participants to expand their product portfolio.  Important jewelry manufacturing countries like India are looking to revolutionize their local markets by introducing their native consumer to the “iced-out” trend so popular in the US.

Like many other US industries, the luxury jewelry industry has been significantly influenced by increased consumer focus on a transparent supply chain (i.e. Traceability) as well as sustainability. Jewelry designers today are rigorously undertaking experiments to find sustainable alternative materials for creating luxury jewelry. Jewelry companies are launching innovative products to meet consumer demand, particularly from younger consumers, all of which is contributing to overall market growth. Innovation examples include feature-totally personalized jewelry.

The M&A market for jewelry companies has been steady over the past five years at approximately 15 transactions per quarter. Most of those transactions are smaller deals (less than $10M in EV). Nearly ten deals per year are greater than $100M. LTM EBITDA multiples have averaged 9x-13x for middle market transactions, with large cap transactions averaging 15x-20x. Many of the jewelry industry transactions get lumped into the luxury market, which tends to skew towards higher multiples, due to scarcity.

In this report, we will walk through current trends, segmentation of brands, sustainability trends, the rise of lab-grown diamonds, and the complicated diamond supply chain. We provide M&A precedent transactions and comparable company analysis, as well as profiles of serial acquirers.

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