As of this writing it appears once again that jewelry is having another good year. Lab-grown diamond jewelry, the new disruptive jewelry category is driving the next gen consumer into jewelry retailers. But not necessarily all jewelry retailers.

Adorning ourselves and our loved ones is primal. How an industry retails jewelry is not. And when is comes to jewelry retailing, the winds of change have never been more powerful. This year they are at gale force.

The jewelry industry is at a critical crossroads. The consumer landscape is shifting dramatically. For jewelry retailers a demographic cliff is approaching, and we must change direction quickly to avoid falling off.

Due to natural attrition the baby boom generation, the backbone of discretionary spending in fine jewelry since the end of World War II, is rapidly declining in size. This dramatic change poses a significant threat to retailers who have traditionally relied on this consumer demographic for sales and growth.

As the baby boomer population ages, their discretionary spending on luxury items, including jewelry, is diminishing. People just don’t spend money on jewelry and luxury goods after they retire and certainly not after they pass away.

Retailers must recognize that today this demographic is not replenishing itself at a sustainable rate. The generational wealth transfer will not necessarily translate into increased sales for traditional jewelry, as younger generations approach discretionary spending very differently.

The next generation of jewelry consumers—millennials and Gen Z—are reshaping the market daily. Clearly, they do not shop in the same ways as their parents and grandparents did. Instead of valuing traditional milestones and purchases, they prioritize experiences and sustainable practices. Younger consumers are less likely to view jewelry solely as a status symbol or investment. They often favor unique, personalized items that reflect their individuality and values (think bespoke, custom design).

Additionally, the younger demographic is significantly more multicultural, influencing their views on relationships, marriage, and product ownership. Traditional symbols of commitment, such as engagement rings, are being redefined.

This new generation tends to favor inclusive narratives around love and partnership, seeking jewelry that resonates with their personal stories rather than conforming to conventional norms.

The jewelry industry’s reliance on established traditions is becoming a liability.

Many retailers have not embraced these changes, leading to a disconnect with younger consumers who prioritize authenticity and ethical practices. Retailers must recognize the urgency of adapting their employment practices, marketing strategies, product offerings, and customer engagement to align with these shifting values.

Despite this there is an opportunity for retailers (particularly independent retailers) to innovate by introducing diverse collections, embracing sustainable practices, and engaging with consumers through digital platforms.

By understanding and responding to the desires of younger consumers, retailers can cultivate loyalty and tap into a burgeoning market segment.

But jewelry retailers must hire employees that look like and understand this new consumer! We must hire, train and retain younger, female and multi-cultural employees now.

The jewelry industry stands at a critical juncture.

To thrive in an evolving marketplace, retailers must acknowledge and adapt to the fundamental shifts in consumer demographics and values. By embracing change, jewelry retailers cannot only survive but flourish in a new era of jewelry consumption.