US Households Spent 10% More on Jewelry, Thanks to COVID

The average US household purchased $475 worth of jewelry in 2020. That may sound not much, but it is a wild 9.8% increase from 2019. The explanation for this meteoric rise: COVID.

Even though we were locked in, and met very few others, we still wanted to look good. No, living in your PJs does not negate this assertion. We have a built-in need to look good, and we have a nurtured need to spend.

Combined, Americans went online, poked around sites, pulled out their credit cards, and bought jewelry at a rate never seen before.

From a jewelry industry perspective, the outstanding rise follows a 9.2% rise in US household spending on jewelry in 2019.

Wealthy, Well Educated, and White

Americans from all walks of life spend on jewelry, and in 2020, most spent more. The demographic characteristics of those that spent the most is not surprising, reflecting among other things who was hurt the least by the pandemic.

According to our research, the largest spenders on jewelry were 45–54 years old with a pre-tax income of $200,000 or more,

They are managers and professionals holding a master’s, professional, or doctoral degree, and live in the largest US cities. They are also mostly white.

Gen-X Dominates

Members of Generation X displayed a ferocious appetite for jewelry, increasing their jewelry spending 113% year on year to $792 on average per household.

The 45–54 age group isn’t always the largest spender on jewelry. Often times, it is 25–34-year-olds. That was the case in 2019. But in 2020, their spending on jewelry fell more than 20%. The most obvious reason was the pause in weddings due to COVID-19 and social distancing.

Other age groups that increased spending on jewelry in 2020 were 35–44-year-olds, and people 65 years and older. Even those aged 75 and older, who typically spend very little on jewelry, opened up to jewelry and increased their expenditures by more than 41%.

High-Income Seeking Outlets

The top income bracket of $200,000 and more per household has traditionally been the group spending the most on jewelry. In 2020, they averaged $2,255, nearly 7% more than in 2019.

Over the years, the gap in jewelry purchases between this group and others has only been growing. In 2016–2017, the +$200k income group spent nearly triple the national average. By 2020, it jumped far past triple the national average to 375%.

Surprisingly, the income bracket that increased their spending the most on jewelry in 2020 were those with the lowest incomes. Those earning less than $15,000 annually, increased their expenditure on jewelry by a massive 475%.

And yet, their average expenditure per household was just $204 or 1/11th of what the top income bracket spent.

Putting It in Context

Our analysis is based on the latest Consumer Expenditure Survey, which also found a decrease in spending on cosmetics. This seems contrary to the assertion that a desire to look good is at the basis of the increased spending.

Two human behaviors are at play. When people feel that life is under a threat, be it economic, a natural disaster, or even security related, they turn to jewelry. Not exclusively, yet very consistently.

Even if demand for jewelry suffers an initial drop during such a period (and it often does), it is one of the first consumer products to bounce back with sales far exceeding typical demand for the period.

Earrings are the Go-To Item

The other human behavior at play is the need to look good to the outside world especially when things are bad. During the pandemic, we jumped onto video conference calls almost daily. Our family, co-workers, clients, and managers saw us daily even when locked in.

Many put on a nice shirt, while wearing comfy pants — outside of the camera view. That had a major impact on the selection of jewelry purchased in 2020.

On a video call, bracelets, rings, and pendants are hardly seen. But earrings are almost always on view. That had a major impact on the selection of jewelry purchased in 2020, making earrings the jewelry item with the greatest sales growth last year.