The global gems and jewelry industry is undergoing a profound transformation driven by rapid technological advancement and the digital economy. These changes are reshaping the entire value chain—from design and manufacturing to marketing and customer engagement. Traditionally, competitiveness in the industry relied primarily on craftsmanship, artisanal expertise, and production costs. Today, however, businesses must adapt quickly to evolving consumer expectations, particularly the growing demand for hyper-personalized products, greater transparency, and reliable product traceability.

Challenges as the New Normal

        According to The State of Fashion 2026, published by The Business of Fashion (BoF) in collaboration with McKinsey & Company, the global fashion industry is entering an era in which "Challenges as the New Normal" has become the defining business reality. Based on surveys of executives and consumers in key markets—including the United States, the United Kingdom, and China—as well as analysis of data from the McKinsey Global Fashion Index (MGFI) covering more than 400 publicly listed fashion companies worldwide, the report highlights an increasingly complex and uncertain business environment. Approximately 46% of industry executives expect business conditions to become more challenging, while 76% identify trade volatility and tariff policies—particularly those originating from the United States—as the most significant factors shaping future business performance.

        Despite these uncertainties, the jewelry segment stands out as one of the strongest-performing categories within the luxury goods market. Global jewelry sales are projected to achieve an average annual growth rate of 4.1% between 2025 and 2028, outperforming other luxury product categories, including watches (3.3%), handbags (2.2%), footwear (1.2%), and apparel (1.0%).

        One of the key drivers behind this growth is the continued rise of self-purchasing behavior. Consumer surveys indicate that 42% of women and 35% of men purchase jewelry for themselves more frequently than they did two to three years ago. The accessible luxury segment, particularly products priced between US$100-US$500, is experiencing remarkable growth. Silver jewelry is gaining increasing popularity among female consumers, while the men's jewelry market, although comparatively smaller, continues to expand at an impressive annual rate of 7–8%.

        The report further emphasizes that technology and innovation have evolved beyond being tools for creating competitive advantage; they have become fundamental business requirements. Several technological trends are expected to redefine the future of the jewelry industry.

        1. AI Shopper and Generative Engine Optimization (GEO)

        Consumers are increasingly using Artificial Intelligence (AI) - powered platforms to search for information and discover new brands, driving a shift in digital marketing from traditional Search Engine Optimization (SEO) to Generative Engine Optimization (GEO). GEO focuses on optimizing content, product information, and brand data to ensure they are accurate, comprehensive, and well-structured, enabling AI platforms such as ChatGPT, Gemini, and Perplexity to effectively discover, reference, and recommend products to consumers.

        2. Enhancing Business Performance through AI

        AI is being applied across the entire value chain, from real-time raw material sourcing and supply chain management to dynamic pricing based on market conditions. AI also enables the creation of Digital Twins, allowing companies to design, simulate, and test products before physical production. These technologies help reduce costs, improve operational efficiency, and accelerate time-to-market.

        3. Building Consumer Trust through Traceability

        Consumers in the luxury goods market increasingly value ethical sourcing, sustainability, and corporate social responsibility. As a result, blockchain technology has become an essential tool for recording and verifying the provenance of raw materials and ensuring transparent traceability throughout the production process, thereby strengthening consumer confidence and brand credibility.

Technology and Innovation in the Gem and Jewelry Industry

        Competition in the gem and jewelry industry is shifting from cost-based competition toward innovation, digital technologies, and creativity. Companies are increasingly adopting advanced technologies throughout the value chain, from Computer-Aided Design (CAD) and three-dimensional (3D) printing for rapid prototyping to automated manufacturing systems and high-precision machinery. These technologies help reduce production costs and lead times, improve manufacturing accuracy, and enable the production of highly complex products while better meeting the growing demand for product customization. Consequently, many countries have successfully integrated advanced technologies with traditional craftsmanship and cultural heritage to enhance product quality and create greater value. Italy provides one of the most notable examples of this transformation.

        Italy

        Italy is internationally recognized as one of the world's leading centers for jewelry manufacturing and design, with a history dating back to the Etruscan civilization (8th–3rd century BCE). During this period, Italian artisans developed sophisticated metalworking techniques, refined enameling, and distinctive gemstone-setting practices, laying the foundation for Italy's renowned goldsmithing tradition. Today, Italy maintains a strong manufacturing ecosystem through several major jewelry production clusters, including Arezzo, Vicenza, Valenza, and Torre del Greco. These districts are home to master craftsmen who have passed their expertise from generation to generation while integrating traditional skills with highly efficient manufacturing systems. Beyond serving as production centers, these clusters bring together machinery manufacturers, research institutions, designers, precious metal suppliers, and jewelry companies, fostering continuous knowledge exchange, technological innovation, and industrial development.

        Vicenza

        The city of Vicenza has been closely associated with the gem and jewelry industry for centuries. Its history can be traced back to the Ancient Veneti, who were renowned for producing finely crafted gold and bronze jewelry. This long-standing tradition has earned Vicenza the reputation as the "Gold Capital of Italy" and has established the city as one of the world's leading jewelry manufacturing hubs.

        Vicenza's success is driven not only by its exceptional craftsmanship but also by its extensive adoption of advanced technologies and innovation throughout the jewelry manufacturing value chain. Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) technologies are widely used in product design and development, enabling manufacturers to create highly sophisticated three-dimensional (3D) models, accurately calculate product dimensions and weight, minimize design errors, and seamlessly integrate digital designs into manufacturing processes. In addition, three-dimensional (3D) printing and Additive Manufacturing technologies significantly reduce the time and cost required for prototype development, increase design flexibility, and facilitate the production of highly complex and customized jewelry products.

Automatic Chain-Making Machines from: https://www.bettersilver.it/jewelry-manufacturer-italy/

        In manufacturing, companies have adopted high-precision machinery, including Computer Numerical Control (CNC) systems as well as laser cutting, engraving, and welding technologies, to enhance production quality, minimize manufacturing errors, and create intricate designs that are difficult to achieve using traditional production methods. In addition, automation systems, precision robotics, and digital production monitoring systems have been implemented to track manufacturing data in real time, improve factory management efficiency, reduce operational errors, and support Italy's industrial upgrading strategy under the Industria 4.0 (Industry 4.0) initiative.

        At the same time, an emerging trend within the Vicenza jewelry cluster is the adoption of Artificial Intelligence (AI) and data analytics to support jewelry design, quality control, and resource management. AI applications are particularly valuable for detecting manufacturing defects and optimizing the use of precious metals. Although these technologies are still in the early stages of adoption, they reflect the industry's transition toward Smart Manufacturing. This transformation is expected to further strengthen the global competitiveness of Italy's gem and jewelry industry by improving productivity, product quality, and manufacturing efficiency.

        T.GOLD

        A key factor reflecting Vicenza's leadership in technology and innovation is its role as the host city of T.GOLD, widely recognized as one of the world's most important exhibitions dedicated to technologies and machinery for the gem and jewelry industry. The exhibition is held twice a year alongside Vicenzaoro, under the collaboration between the Italian Exhibition Group (IEG) and the Italian Manufacturers and Exporters Association of Machinery for the Jewelry Industry (AFEMO). In 2026, the exhibition was held from 16–20 January for the first edition and 4–8 September for the second edition.

        T.GOLD features cutting-edge technologies and equipment from more than 170 leading international companies. One of its distinguishing characteristics is that it is the only exhibition where visitors can observe machinery in operation, providing live demonstrations of advanced manufacturing technologies throughout the entire jewelry value chain. The exhibition covers a wide range of technologies, including alloy treatment, prototyping and digital production, advanced mechanics, laser welding, as well as tools and equipment for jewelry manufacturing. 

        In addition, T.GOLD showcases a broad range of advanced manufacturing technologies and emerging innovations that are transforming the industry, including three-dimensional (3D) printing, Additive Manufacturing, Binder Jetting, and advanced automation systems, all of which contribute to higher production efficiency, greater manufacturing flexibility, and improved product quality. One of the most notable technologies presented at the exhibition is Precious Metal Recovery and Refining, which enables manufacturers to recover and recycle gold dust, metal scraps, and other valuable materials generated during casting, cutting, grinding, polishing, and other production processes, allowing these precious materials to be reintroduced into the manufacturing cycle and supporting both cost efficiency and sustainable production.

An Italian-brand laser welding machine (SISMA) from https://www.sisma.com/en/laser-welding-machines/

        In addition, T.GOLD reflects the strength of Italy's jewelry machinery manufacturing industry and plays a pivotal role in exporting advanced manufacturing technologies to jewelry-producing countries worldwide. As a result, Italy is recognized not only as one of the world's leading jewelry producers but also as a global hub for technological innovation and the development of advanced manufacturing solutions for the gem and jewelry industry. According to Massimo Poliero, President of the Italian Manufacturers and Exporters Association of Machinery for the Jewelry Industry (Associazione Fabbricanti Esportatori Macchine per Oreficeria: AFEMO), "Italy's jewelry machinery industry generates approximately €1 billion in annual revenue, and AFEMO member companies account for around 70% of the sector's total exports." 

China

China is widely recognized as one of the world's leading centers for gem and jewelry manufacturing, supported by its extensive production capacity, highly skilled workforce, advanced technologies, and well-integrated supply chain. These strengths enable the country to manufacture a broad spectrum of products, ranging from fashion jewelry to high-end luxury jewelry. In recent years, China has transformed its role from a low-cost, mass-production base into a technology-driven manufacturing powerhouse by integrating automation, Artificial Intelligence (AI), and data analytics into product design, production planning, and quality control. These technological advancements have significantly improved production efficiency and strengthened the competitiveness of China's jewelry industry in the global marketplace.

Shenzhen and Panyu

China's jewelry industry is primarily concentrated in Guangdong Province, particularly in Shenzhen and Panyu District of Guangzhou. Since the 1980s, these regions have developed through investment and technology transfer from Hong Kong entrepreneurs, evolving into highly integrated industrial clusters that bring together raw material suppliers, manufacturers, traders, gem testing laboratories, research institutions, and logistics service providers within the same geographical area. This well-established industrial ecosystem has fostered continuous technological innovation and industrial development.

Shenzhen is home to more than 250,000 professionals employed in the jewelry industry, approximately 30 jewelry trading centers and wholesale markets, and an annual jewelry production and trading value of approximately RMB 150 billion (US$22.08 billion). In addition, gold and platinum products manufactured in Shenzhen account for approximately 70% of the delivery volume through the Shanghai Gold Exchange. Shenzhen was among the first cities in China to adopt Computer-Aided Design (CAD) technologies and three-dimensional (3D) printing, which have since evolved into a fully integrated manufacturing ecosystem. Today, the entire production process—from jewelry design, mold making, and metal casting to gemstone setting, packaging, and export—can be completed within the city, creating one of the world's most efficient jewelry manufacturing ecosystems.

        Meanwhile, Panyu District has become one of the world's largest jewelry manufacturing bases, specializing in mid-range and high-end jewelry. The district is home to more than 400 jewelry manufacturers, approximately 1,000 colored gemstone cutting factories, over 2,000 jewelry trading companies, and provides employment for approximately 100,000 people. Manufacturing activities in Panyu are highly technology-driven, with extensive adoption of advanced high-precision equipment that enables the production of sophisticated jewelry designs, minimizes material waste, and significantly shortens prototype development cycles for international jewelry brands.

        Smart Manufacturing

Today, many Chinese jewelry manufacturers have upgraded their operations by adopting Smart Manufacturing, integrating automation systems, Computer Numerical Control (CNC) machinery, Digital Manufacturing systems, and AI throughout the entire production process. These technologies are applied across every stage of manufacturing, from Computer-Aided Design (CAD), 3D printing, and metal casting to gemstone setting, polishing, surface finishing, and quality inspection. The adoption of these advanced technologies has significantly improved production efficiency, enhanced quality control, shortened time-to-market, and enabled greater manufacturing flexibility.

        A notable example is Xingguangda Jewellery, which has developed specialized production lines, including a premium jewelry production line, a Rapid Response Manufacturing line, and a VIP Production Line for key clients. These initiatives exemplify the concept of Flexible Manufacturing, enabling the company to efficiently support both large-scale mass production and highly customized manufacturing tailored to specific customer requirements.

Dust-free manufacturing facilities in Shenzhen from https://news.jewellerynet.com/

Hard Pure Gold 

        Traditionally, most gold jewelry in China has been manufactured from 99.9% pure gold (24K), which offers excellent investment value but is relatively soft, limiting design possibilities and requiring a greater amount of gold to produce durable jewelry. To address these limitations, China has developed Hard Pure Gold, an innovative technology that combines advanced manufacturing techniques—such as electroforming, high-precision casting, and microstructure engineering—to significantly enhance the hardness and durability of gold while maintaining a purity of at least 99%.

        innovation also enables the production of hollow-form jewelry, substantially reducing the amount of gold required without compromising product quality. Some jewelry pieces can be manufactured with a starting weight of as little as 1.5 grams, thereby lowering the initial purchase price and making gold jewelry more affordable for younger consumers and value-conscious customers. This technological advancement has become particularly attractive during periods of high gold prices, while preserving the intrinsic value and high purity of gold.

A pair of Hard Pure Gold lion charms with a total weight of 1.5 grams from World Gold Council

        To further promote industry-wide adoption, the World Gold Council, in collaboration with the China Gold Association and leading jewelry manufacturers, has established unified industry standards covering gold purity, hardness, and manufacturing processes. These standards enhance consumer confidence, ensure consistent product quality across the industry, and facilitate the international promotion of Hard Pure Gold through global trade exhibitions and joint branding initiatives by Chinese manufacturers. As a result, Hard Pure Gold has gained recognition as a new generation of gold jewelry that successfully balances wearability, durability, aesthetic appeal, and investment value.

        China's competitive advantage therefore extends far beyond its manufacturing capacity. It is built upon a comprehensive industrial ecosystem that seamlessly integrates advanced technologies, manufacturers, research and development capabilities, and a well-developed supply chain. This integrated approach has enabled China to transform its global image from "Made in China" to a technology-driven smart manufacturing base characterized by innovation, advanced production technologies, and modern manufacturing management, thereby strengthening its long-term competitiveness in the global gem and jewelry industry.

Boucheron

The French high jewelry maison Boucheron is a leading example of how innovation can serve as a key differentiator in the luxury jewelry industry. Guided by its philosophy of "The Freedom to Create," Boucheron empowers its design teams to experiment with unconventional materials and emerging technologies, enabling them to push beyond the boundaries of traditional jewelry design. Since 2020, the company has introduced a series of Innovation Capsules—special collections that showcase the integration of advanced materials and cutting-edge technologies into high jewelry.

        Through its Innovation Capsules initiative, Boucheron has continuously explored new materials and technological innovations. Examples include incorporating denim into the Quatre ring and bracelet collections, developing holographic coating technology to create distinctive iridescent surface effects, and introducing the Quatre 5D Memory ring, which incorporates 5D optical data storage technology by recording digital information with light onto nanostructured glass. These innovations demonstrate how advanced technologies can be combined with traditional craftsmanship to create entirely new aesthetic and functional possibilities for luxury jewelry.

Quatre Denim Ring and Quatre 5D Memory Ring from Boucheron

        Boucheron's approach demonstrates that innovation in the gem and jewelry industry extends far beyond advances in machinery and manufacturing processes. It also encompasses the development of novel materials, the adaptation of technologies originating from other industries, and design concepts that challenge conventional perceptions of luxury jewelry. Furthermore, Boucheron collaborates with researchers, universities, and the Kering Sustainable Innovation Lab to develop environmentally responsible materials and low-impact manufacturing processes while maintaining the exceptional quality, craftsmanship, and aesthetic excellence that define its creations.

Ultimately, the global gem and jewelry industry is entering an era in which competition is no longer defined by who can manufacture at the lowest cost, but by who can create the greatest value. Thailand already possesses world-class craftsmanship, high-quality materials, and a strong international reputation. Nevertheless, if manufacturers remain committed to conventional production methods and hesitate to invest in technology, innovation, and workforce development, these competitive advantages may gradually diminish. Conversely, by transforming from contract manufacturers into creators of innovation, high-value products, and globally recognized brands, Thailand has the potential to strengthen its position as one of the world's leading centers for the gem and jewelry industry.

Budhiphorn Vichaidist

The Gem and Jewelry Institute of Thailand (Public Organization)

October 2026

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Reference: 

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