U.S. Wedding and Engagement Ring Market $8.1 Bln

The U.S. bridal market is sizzling despite tempestuous economic conditions a recently published study by The Wedding Report said. Their analysis suggested that brides and grooms will spend a total of $8.1 billion on wedding and engagement rings in 2008.

The study examined various aspects concerning the purchase of engagement and wedding rings including spending, ring components and how and when couples make their decisions.

It noted that U.S. spending on engagement rings would total $6.1 billion in 2008, with an additional $2 billion spent on wedding rings.

The bridal ring market is expected to grow by 13.4 percent over the next five years to $9.2 billion, the study said.

The vast majority of engagement and bridal rings will have diamonds, and more than two thirds will have white gold, the study said. December is the most popular month for engagements and Saturday is the most popular proposal day. Most couples begin their research more than six months before their wedding, and style and cost are the factors most commonly influencing couples’ eventual purchase decision.

The city of Berkeley Lake in Georgia ranks highest as the top growth market with an expected 13 percent growth in weddings and 27 percent growth in spending over the next 5 years, the study said.

Wedding anniversaries are also important occasions for jewelers.

According to IDEX Online’s analyst Ken Gassman, far too many merchants fail to take advantage of this sales opportunity. Just over one-fifth of all non-bridal diamond jewelry is given as an anniversary gift. With the projected increase in the number of weddings, coupled with a modest decline in the divorce rate, the number of wedding anniversaries in the U.S. is seen rising significantly over the next decade.

Jewelers who do not maintain a customer database to target customers with upcoming wedding anniversaries are missing out on a large chunk of potential business.

IDEX Online found that online diamond retailer Blue Nile appears to have captured over 4 percent of the total diamond engagement ring market in the U.S.

Blue Nile’s average ticket for a diamond engagement ring in 2007 was $6,200, up from the prior year’s $5,700. Though this is well above the industry average of $3,210 in 2006, it is in line with the average ticket for a diamond engagement ring at a guild (AGS-type) jeweler.