Business closures in the US jewellery industry rose again in the first quarter of 2025, according to statistics released by the Jewelers Board of Trade (JBT), highlighting ongoing economic pressures reshaping the market.
JBT recorded 178 closures between January and March 2025, a slight increase from 173 closures in the same period last year. The trend marks a steady rise over the past two years, with Q1 2023 seeing just 116 closures. The data points to mounting challenges faced by jewellery businesses, including inflation, evolving consumer habits, and a generational turnover as aging owners exit without clear succession plans.
While new business formation showed a modest decline—92 businesses were added in Q1 2025, down 5.2% year-on-year—the rate of closures continues to outpace new openings, suggesting a tightening of the industry landscape.
Consolidations and mergers also surged, with 35 recorded in Q1 2025 compared to 13 in Q1 2024, indicating that some businesses are choosing strategic mergers to survive the volatile environment.
Credit rating activity reflected cautious market sentiment. There were 1,369 changes in Q1 2025, with 662 upgrades and 707 downgrades, showing a slight decrease in both categories compared to the previous year.
The continued rise in closures and consolidations points to an industry in transition, where fewer new players are entering the market, and established businesses are increasingly being forced to adapt or exit.