Diamond industry analyst Avi Krawitz examines how value and luxury are shaping US holiday sales. With mid-market consumers tightening their budgets, retailers are adapting — highlighting craftsmanship, authenticity, and the influence of Gen Z. This season, shoppers are spending with purpose, setting a more deliberate tone for the festive months ahead, he notes.
The diamond and jewellery trade is entering the holiday season with mixed expectations.
The unofficial start on 1st November comes amid uneven consumer sentiment, with jewellers at the high and low ends of the market more upbeat than those catering to middle-income households now feeling the squeeze of economic and geopolitical pressures.
Overall, US consumers appear to be spending with intention rather than impulse, setting a more restrained tone for November–December sales. Middle-income earners — the engine of the retail economy — are holding back amid macroeconomic uncertainty, several projections show.
Consumers plan to spend an average of $890.49 on holiday gifts, food, decorations, and other seasonal items — just below last year’s $901.99 per person, according to the National Retail Federation’s (NRF) annual holiday survey.
Promotional Shopping
A more cautious consumer mindset this season is being shaped by higher tariffs and record gold prices, both of which are feeding through to retail prices.
With gold trading at historic highs, many jewellers are expected to pass on part of their added costs, while others are reworking their manufacturing models or adjusting the gold content in their collections to protect margins.
Tariffs, however, appear to be the bigger concern for consumers. According to the NRF, 85% of shoppers expect prices to rise because of the recent increases — prompting many to prioritise discounts and promotional events to help manage tighter budgets.
McKinsey & Co. reached similar conclusions in its holiday outlook, noting that early shopping patterns, generational shifts, and a move toward more practical, purposeful gifting are shaping this year’s spending behaviour.
Focus on Young Shoppers
McKinsey expects a stronger focus on essentials this season, as many consumers plan to cut back on discretionary and semi-discretionary spending.
“When we looked at responses by category, 50% of consumers said they expect to delay purchases in areas such as electronics, accessories and jewellery, or dining out,” the report noted.
Even so, 18% of respondents said they intend to splurge on jewellery and accessories. Dining out led at 35%, followed by groceries (32%) and travel (30%).
Within the jewellery and accessories category, demand is being driven by younger consumers. Twenty-eight percent of Gen Z shoppers said they plan to spend on jewellery, compared with 21% of millennials, 10% of Gen X, and 7% of baby boomers.
This growing influence of younger buyers is pushing brands to emphasise quality, responsibility, and authenticity.
A 2024 study by Interior Architects found that 71% of Gen Z consumers rank quality and craftsmanship as their top consideration when choosing a jewellery brand, while 39% cite ethical and sustainable sourcing as their main motivator when deciding where to shop.
Quality & Authenticity
That focus on values and substance also came through in Helzberg’s 2025 Engagement & Ring Shopping Survey, which polled 1,000 US adults aged 20 to 40 to understand how younger consumers approach jewellery purchases — especially engagement rings.
The survey found that 96% of respondents rated quality as important, 76% said they would pay more for customisation, and 88% of Gen Z participants called sustainability an important factor when choosing a jeweller.
With average spending on engagement rings hovering between $4,000 and $6,000, couples are prioritising emotional authenticity and shared decision-making. Helzberg noted that most collaborate on the purchase, with 84% of Gen Z proposers saying their partners had shown them the ring style they wanted.
Younger buyers are also turning to lab-grown diamonds as a way to save while achieving a larger look, according to the Plumb Club’s October trends report, Ring It On. At the same time, the report adds, design trends are leaning more pragmatic — with elongated ovals, cushions, and marquise cuts, yellow-gold settings, and pared-back solitaires — signalling a preference for jewellery that feels personal rather than performative.
Luxury Resilience
While younger consumers are reshaping expectations around value and authenticity, resilience at the high end of the market is being driven less by discounts and more by exclusivity, craftsmanship, and brand heritage.
Luxury jewellers continue to report steady demand for rare stones and high-jewellery pieces, even as broader consumer sentiment softens. LVMH saw solid demand in Europe and the United States during the third quarter, while Kering Group noted similar strength across its luxury fashion houses.
For affluent shoppers, jewellery continues to hold both emotional and investment appeal, particularly as global uncertainty fuels interest in tangible assets. Brands are responding with limited-edition collections, bespoke designs, and richer storytelling around provenance and artistry — reinforcing the perception of rarity and long-term value, according to Knight Frank’s Luxury Investment Index published in early 2025.
However, it’s the middle-income households that continue to drive the bulk of jewellery sales, and they have become more measured in their approach. Rising living costs and economic uncertainty are weighing on discretionary spending, prompting consumers to prioritise essentials and delay big-ticket purchases.
All of this points to a 2025 holiday season defined by two distinct consumer groups: the value-driven shopper and the high-end collector. While mainstream buyers focus on essentials and purposeful gifting, affluent shoppers continue to seek pieces that combine emotion, artistry, and long-term value. That is pushing jewellers to double down on authenticity and craftsmanship in their quest to drive demand in an increasingly uncertain environment.
Avi Krawitz is the Founder of ‘The Diamond Press’ and a leading content creator and consultant in the diamond industry. He is widely recognised for his insightful analysis and storytelling, offering clarity to both industry professionals and curious consumers navigating a complex and evolving market. See more of Avi’s work at www.thediamondpress.com