China’s pearl industry witnessed a decline in the first half of 2024 following a boom last year but continued economic recovery alongside rising demand for higher-quality pearls could support growth.

Pearl companies interviewed by JNA at the Zhuji International Jewelry Exhibition (Pearl) held in China in May attributed the slowdown to ongoing global economic headwinds, which inevitably impacted the Chinese pearl market. Buyers taking a more cautious stance due to high pearl prices was also a culprit.

The exhibition was held on the sidelines of the 2024 Shaxiazhu World Pearl Congress.

Ronggen Shen, general manager of Zhejiang OSM Pearls & Jewelry Co Ltd, said the business was down since the fourth quarter of 2023. Pearl jewellery sales also declined during Mother’s Day celebration in May this year while prices of loose pearls dropped compared to peaks reached last year. 

“The pearl market performed exceptionally well in 2023 until nearly the end of the year. The market goes through cycles of ups and downs, and an eventual cooldown is natural,” Shen explained. 

“Bear in mind that the pearl market has grown significantly and gained wide recognition in recent years. Despite a slow business, we are still in a relatively favourable position. The business will not fall to an extremely low level,” he added. 

Pearl companies also pointed to a shift towards premium products in the market, driven by younger consumers. 

“Consumers now prioritise the quality of pearls,” said Tian Renyu, founder and designer of Heidi Jewelry. “To cater to this demand, we launched our premium freshwater pearl jewellery collection, Dreamy Rainbow, which showcases the natural lustre of pearls with classic and simple designs.” 

Tian also emphasised that the quality of freshwater pearls has significantly improved, thanks to advancements in pearl farming. 

Seeking growth

Industry stakeholders participating at the 2024 Shanxiahu World Pearl Congress Roundtable Conference on May 21 said China’s freshwater pearl industry is poised for further growth through innovative sales models such as livestreaming, digitalisation of supply chains and pearl farming innovations.

“Leading e-commerce platforms such as Taobao, Alibaba and Douyin have established their livestreaming bases at China Pearls and Jewellery International City in Zhuji,” shared Ruan Tiejun, chairman of Zhejiang Ruan’s Pearl Holding Co Ltd. “These platforms rolled out various campaigns to promote pearl jewellery with encouraging sales figures.”

Zhuji, located in Zhejiang Province, accounts for 70 per cent of total freshwater pearl production worldwide. In 2023, annual sales of pearls in Zhuji exceeded RMB 50 billion (around US$6.89 million), accounting for 80 per cent of China's total pearl sales, according to government data.

Ho Tieyuan, secretary general of Zhejiang Pearl Industry Association, said Zhuji aims to further strengthen its position as the “Pearl Capital of China,” encompassing pearl cultivation, processing, manufacturing, wholesale, research and development, and retail sales through livestreaming.

“The freshwater pearl sector in China must expand to international markets as this is a promising business opportunity,” Ho said.

He said two categories of freshwater pearls stand out – small-sized pearls and irregular-shaped pearls. “In particular, irregular-shaped pearls can cater to the demand of Western markets, where buyers seek unique and personalised styles," he added.

Continued economic recovery could also support growth in the pearl sector, industry players said. Government data showed China's gross domestic product grew 5.3 per cent year-on-year in Q1 2024, up from 5.2 per cent in Q4 2023.