The Manufacture of Jewellery and Related Articles in South Africa 2023

Challenges

Counterfeit and illegal products. Economic volatility and uncertainty affecting affordability and demand. Global competition from established players. Lack of skilled workers. Quality of infrastructure and logistics. Regulatory environment. Reliance on imports of raw materials, components and machinery.

Introduction

South Africa is a significant producer of gold, diamonds and platinum. Despite the wealth of resources, the jewellery manufacturing industry remains small and South Africa has a long history of failing to beneficiate and add value to its raw minerals. Jewellery manufacture and retail sales declined marginally in 2022. Revenue growth in 2023 is expected to be strong. Although many initiatives have been implemented to encourage competitiveness and to increase beneficiation, growth is hampered by the lack of new entrants, a shortage of skilled labour and challenging trading conditions.

Opportunities

Design innovations from South African manufacturers. Ecommerce and online platform growth. Growing global demand. Rich resource base of precious metals, diamonds and gemstones. Sustainable and ethical sourcing.

Outlook

The outlook will be influenced by economic factors, consumer trends, confidence and disposable income, recovery of the tourism sector and re-opening of international markets, competition and market positioning, digital transformation and government support, policies and regulations. Jewellery manufacturing leverages natural resources, has the potential to create jobs and build on growing local and global demand. Jewellery consumption is expected to stabilise at approximately 6% growth annually to 2025, which will drive revenue of locally-produced and sold jewellery. Increased interest in locally-produced goods and the global competitiveness of local jewellery manufacturers opens opportunities for increased import replacement. Multiple challenges have resulted in declines in the value of jewellery exports and the volume of jewellery beneficiation of platinum, gold and diamonds.

Report Coverage

This report focuses on the manufacture of jewellery and related articles in South Africa and includes information on precious metal production, beneficiation and jewellery fabrication, exports, notable players, corporate actions, regulation and influencing factors. There are profiles of 19 companies including retailers like American Swiss and Sterns, manufacturers such as Oro Africa, Richline and Uwe Koetter and coin producers including the South African Mint Company and Universal Mint.

Trends

Consumers increasingly making high-value purchases online, and jewellers adapting by establishing online stores and leveraging digital marketing strategies. Emphasis on local and handcrafted designs. Fashion and art trends influencing designers to experiment with unconventional materials, avant-garde designs and innovative techniques. Growing demand for jewellery that is ethically sourced and produced. Growing male jewellery market. Increasing demand for unique and personalised jewellery. Popularity of laboratory-grown synthetic or cultured diamonds. The adoption of advanced technologies enabling jewellers to streamline production processes, enhance design capabilities and create intricate and precise jewellery pieces. Wedding jewellery continues to be a significant driver of revenue.