Promising Prospects for Growth in Exports of Jewellery and Gems
Promising Prospects for Growth in Exports of Jewellery and Gems. As the global market begins to recuperate from the throes of the pandemic, Thailand stands at the forefront, prepared to set a promising trend with its jewellery and gem exports. Thanks to rising prices of silver jewellery and steadfast demand for precious gemstones like rubies and sapphires, the country’s shimmering market sees an expected growth of around 10% this year. This upbeat forecast is not only supported by the recent upsurge in gemstone transactions but also by the nation’s diligent efforts to explore new markets, offering a promising future for Thailand’s gem and jewellery industry.
Current Growth of the Gems and Jewellery Industry
The gems and jewellery industry in Thailand is currently experiencing an upswing, underpinned by several positive factors such as the increasing prices of silver jewellery and strong demand for solid gemstones like rubies and sapphires. Transactions involving gemstones have recorded noticeable growth, this is largely due to the restoration of international travel activity to pre-COVID-19 levels and the renewed consumer confidence after a long stretch of dampened shopping during the pandemic period. https://www.responsiblejewellery.com/member/gem-and-jewelry-institute-of-thailand/
State of gems and jewelry exports from Thailand
Thailand’s gems and jewellery exports, excluding gold, are expected to see a rise by around 10% this year, with a projected reach of US$8.84 billion. Last year, the export of gems and jewellery, inclusive of gold, ranked third in terms of total shipment value, following closely behind automobiles and auto parts, and computers and parts.
Factors contributing to industry performance
The restoration of international travel coupled with replaced consumer confidence has contributed significantly to the performance of the gem and jewellery industry in Thailand. The return to previously normal levels of travel has spurred an increase in gemstone transactions.
Projected growth for the current year
The growth of the coloured gemstones segment, which is expected to expand by over 100% this year, is a critical factor in the overall projected growth for the current year. The anticipated expansion of this segment will further solidify Thailand’s position as a trading hub for these products.
Emerging Markets and Strategic Partnerships
Amid potential stagnation seen in primary trading partners such as the US and Europe, Thailand has made proactive efforts in exploring new markets such as Saudi Arabia and Dubai.
Focus on new markets to replace stagnant ones
The Middle East, especially the regions of Saudi Arabia and Dubai, has become the new focus as markets to replace the stagnant ones. These underexplored markets present promising potential for the export industry of gems and jewellery from Thailand.
Collaboration with Dubai as a hub for the gold and diamond industry
In light of the stagnant markets, there has been a strategic shift towards collaborating with Dubai, thanks to its strong reputation as a hub for the gold and diamond industry. This collaborative approach aims to expand Thailand’s export market and boost the annual growth rate.
Saudi Arabia and Dubai as potential export markets
Saudi Arabia and Dubai are emerging as potential export markets for gems and jewellery from Thailand. The strategy to tap into these markets is driving Thailand’s industry growth, despite the sluggish domestic economic situation and potential stagnation of major trading partners.
Performance of Specific Segments
A significant driver of the industry’s growth is the remarkable performance of specific segments, particularly silver jewellery and solid gemstones.
Role of silver jewellery in driving growth
The rising prices of silver jewellery, as well as the solid international demand, contribute significantly to the growth of Thailand’s gems and jewellery industry. This increase is projected to continue, with silver pieces playing a key role in facilitating trade growth.
Demand for solid gemstones like rubies and sapphires
Solid gemstones such as rubies and sapphires have seen an uptick in demand which culminated in increased transactions of these gemstones. This robust demand has played a crucial part in enhancing the industry’s performance.
Significant expansion in the coloured gemstones segment
Coloured gemstones have marked substantial growth and are projected to expand over 100% this year, further asserting Thailand’s role as a trading hub for these stones.
Role of International Trade Promotion Department
In a bid to amplify gems and jewellery exports, the International Trade Promotion Department partners with close to 20 governmental and private sector agencies.
Organizing trade fairs
Trade fairs have been organized to showcase the growth of Thailand’s gems and jewellery industry on the global stage. The upcoming Bangkok Gems and Jewelry Fair, a staple trade fair, is set to take place later this year and will host over a thousand exhibitors.
Collaboration with governmental and private sector agencies
Collaboration with nearly 20 governmental and private sector agencies has been initiated to boost the exports of gems and jewellery. These partnerships facilitate connections, foster relationships and drive industry growth.
Increasing global exposure for Thailand’s gems and jewellery industry
The department aims to further increase global exposure for Thailand’s dazzling gems and jewellery industry. By organizing trade fairs and through inter-agency collaborations, the global visibility of the Thai industry is getting a significant uplift.
Noteworthy Export Products and Markets
While gold exports contribute significantly to the overall shipment value, gems and jewellery, even without gold, remain a key part of the country’s exports.
Comparison of gems and jewellery exports with total shipment value
Even when gold is excluded, gems and jewellery find their place as the ninth-largest export product of the country. The revenues generated from these exports stand at a substantial figure, emphasising the role of these products in the country’s export landscape.
Key export markets
Key export markets for Thailand’s gems and jewellery currently include the United States, India, Hong Kong, Germany, and the UK. These markets are still the primary destinations, despite the ongoing exploration for new markets.
Contribution of gems and jewellery exports to total export value
Gems and jewellery exports accounted for 2.8% of the total export value in 2022, generating $8.03 billion, marking a 30.3% increase from the previous year.
Opportunities Amid Global Challenges
Despite facing global challenges like the pandemic, the gems and jewellery industry has found unique opportunities for growth.
Effect of restoration of international travel
The recovery of international travel has had a positive effect on the industry. Renewed mobility has led to increased transactions, particularly for gemstones, underlining the industry’s resilience.
Renewed consumer confidence after an extended period of pandemic restrictions
Consumer confidence, which had been dampened by the pandemic, is slowly returning. This restored confidence, coupled with increased retail activity, has translated into positive growth for the gems and jewellery industry.
Resilience amidst sluggish domestic economic situation
Despite a sluggish domestic economic situation, the gems and jewellery industry has shown remarkable resilience, partly thanks to the concerted search for new markets to replace stagnant ones, such as Saudi Arabia and Dubai.
Future Prospects and Opportunities
Considering the current state of the industry, there’s ample reason to anticipate further growth and expansion.
Anticipation for the growth of the industry
Thailand’s gems and jewellery industry is poised for growth, with promising prospects on the horizon. Factors contributing to this positive outlook include an upsurge in prices of silver jewellery and solid demand for gemstones.
New emerging markets
The exploration of new markets, particularly in the Middle East, presents exciting growth opportunities for Thailand’s gems and jewellery industry. Saudi Arabia and Dubai are promising regions that could further boost the sector’s expansion.
Outlook for the global jewellery and gems market
The global gems and jewellery market promises a favourable outlook, which spells potential growth for Thai exports. Despite the challenges faced by key trading partners, the industry remains hopeful for continued expansion.
Impact of Exports on Thailand’s Economy
The contribution of gems and jewellery exports to Thailand’s economy is significant, affecting not only the gross domestic product (GDP) but also employment and related sectors.
Contribution to the country’s GDP
The gems and jewellery industry has played a significant role in contributing to the country’s GDP. The robust demand for Thai gemstones and jewellery has had a positive impact on the national economy, a clear indication of the sector’s vital role.
Influence on employment and related sectors
The growth of the gems and jewellery industry creates jobs and has a ripple effect on related sectors. This fuels the national economy and contributes to overall development and progress.
Significance in terms of export earnings.
Gems and jewellery represent an important part of the country’s export earnings. The revenues generated from this industry significantly bolster the national economy and highlight the importance of the sector in Thailand’s financial health.
Industry Projections for the Year
The industry is hopeful for the current year’s performance, expecting a favourable growth rate and notable trends in demand.
Expected growth rate
The anticipated growth rate for this year is about 10%, a figure that attests to the continuing strength of the gems and jewellery industry in Thailand.
Key factors influencing future growth
Key factors expected to influence future growth include rising silver prices, robust demand for solid gemstones, and significant expansion in the coloured gemstone segment. Additionally, the exploration of new markets such as Saudi Arabia and Dubai is a promising prospect.
Expected trends and shifts in demand
The industry expects to witness shifts in demand and emerging trends that will drive its growth. These include increased demand for solid gemstones and coloured gemstones, as well as a growing interest in silver jewellery.
Major Challenges on the Path to Growth
Despite the industry’s promising outlook, there are challenges on the path to growth, including stagnant markets and potential threats to expansion.
Major trading partners experiencing stagnation
Stagnation in major trading partners like the US and Europe creates challenges for Thailand’s gems and jewellery industry. This highlights the importance of exploring new markets, a strategy which has been undertaken effectively in recent times.
Potential threats and hindrances to growth
Potential threats and hindrances to future growth are to be expected, given the global economic situation and recession in some markets. It is important for the industry to remain vigilant and adaptive to overcome these challenges and mitigate their effects.
Approaches to mitigate risks and challenges
The industry has adopted various approaches to mitigate risks and challenges such as exploring new markets, increasing collaborations, renewing partnerships, and promoting the industry on the global stage. These proactive manoeuvres ensure that Thailand’s gems and jewellery industry remains on a growth trajectory in spite of global economic tides.
