Chapter 10 - The Pearl Market

Abstract

This chapter provides a brief overview of recent production trends and demands for different pearl products. It highlights some of the factors that are likely to influence pearl production, pearl markets, and the viability of the pearling industry over coming years. The value of world pearl production increased 7% in 2005 compared to 2004, and returned to 2001 levels, at US$640 million. South Sea pearl production registered record levels in 2005 and made up the lion's share of 37% of the total production value. Akoya pearl production dropped in both Japan and China. Nonetheless, the Akoya pearl industry remains a major pearl category, with a 2005 production value of US$128 million, making up around 20% of the total pearl market in value. Production of freshwater pearls from China peaked in 2004 and 2005, characterized by increased availability of larger sizes and innovative shapes. Pearls are now a major ingredient in jewelry, with very elastic consumer price ranges covering all jewelry segments, including fashion accessories, basic designs for the mass market, designer jewelry, fine jewelry brands and haute couture masterpieces. Pearl producers have faced up to heavy challenges in the past 20 years relating to farm management, development of hatchery methods, genetic research, financial considerations, cost controls to achieve economy of scale, and varying environmental issues. However, while the industry advances toward sophistication in terms of quality and supply, the consumer market has also evolved into a highly complex and competitive world in which there is a profusion of products for an increasingly discerning and demanding clientele.