IDEX Online Research: Millennials Drove Jewelry Spending in 2013

(IDEX Online) – Millennial American consumers – particularly those between ages 25 and 34 – spent more on jewelry than any other age group in 2013, according to newly released data from the government’s Consumer Expenditure Survey.

This is a continuation of a trend that began in the recession of 2008-2010, when Millennial shoppers out-spent Boomers and other older shoppers for the first time in history. The graph below illustrates the relative spending levels for jewelry by age group in 2013.

Factors Driving Millennial Spending on Jewelry

There are several factors that have been driving Millennial consumers into jewelry stores, including the following:

·         Millennial shoppers are “tuned” to seek fashion accessories, including fashion jewelry.

·         Millennial consumers are the sweet spot for diamond engagement ring (DER) sales, since the average age at which couples are marrying is between 25 and 30 years old.

·         Millennial shoppers want “flash for cash” – lots of bling including multiple stones and various alternative metals for their jewelry.

Boomers Have Been Edged Out By Millennial Jewelry Shoppers

Historically, older consumers were the big spenders for jewelry. They were at their peak earning years, their home mortgages were paid off, the kids’ college bills were paid, and they had more money than at any other time of their life.

Research has confirmed that high-income households spend disproportionally more on jewelry than lower income households. American shoppers aged 55-64 were historically the largest spenders on jewelry.

However, Boomers’ jewelry expenditures have been disappointing in recent years. As Boomers have aged, their spending has not matched the levels of their parents. But, this is not to minimize the importance of Boomers to the U.S. jewelry industry.

In 2013, they were the second-largest group of consumers who spent money on jewelry. The impact of Boomer incomes and spending has been delayed, but could become more important over the next few years.