Russian Jewelry Prices Surge 50% as Demand Falls

The Russian jewelry sector has been grappling with substantial price increases driven by the rising cost of precious metals. Over the course of three years, the price of jewelry products has surged by nearly 1.5 times, effectively increasing costs by 50%. This dramatic escalation has fundamentally altered the market landscape, forcing consumers to reconsider their purchasing habits.

The primary driver behind this price hike is the rising cost of precious metals, which forms the basis of jewelry production. As raw material costs climb, manufacturers and retailers have had to pass these increases on to consumers to maintain their margins. This has resulted in a significant reduction in the purchasing power of consumers looking to buy jewelry.

The impact of these price increases is evident in the sales data. Consumers are clearly responding to the higher price points by reducing their jewelry purchases, leading to a measurable decline in both unit sales and overall market turnover.

Consumer reaction to the soaring jewelry prices has been swift and decisive. Data covering the first 11 months of 2025 reveals a clear trend of reduced spending on jewelry across Russia. The total number of jewelry units sold during this period stood at 58 million, representing a 3% decrease compared to the same timeframe in the previous year.

This decline in sales volume is not an isolated event but rather a direct consequence of the sustained price increases. Consumers are either delaying purchases, buying smaller items, or opting out of the market entirely as jewelry becomes increasingly unaffordable for many.

The reduction in sales has had a cascading effect on the overall market health. The total turnover of the jewelry market, measured by the number of items entering circulation, contracted by 5.2% to reach 79.1 million units. This contraction signals a challenging environment for jewelry retailers and manufacturers operating in the Russian market.

Looking ahead, the outlook for the Russian jewelry market remains challenging, with prices expected to continue their upward trajectory. Industry experts are forecasting that jewelry prices will rise by at least 10-15% in the coming year. This anticipated increase will likely further strain consumer budgets and could lead to an even more pronounced decline in demand.

The continued price escalation is expected to maintain pressure on both consumers and market participants. Retailers may need to adapt their strategies to appeal to a more price-sensitive customer base, potentially by offering more affordable options or focusing on value-added services.

For consumers, the forecast suggests that jewelry purchases will become an increasingly significant financial decision. The combination of already elevated prices and further expected increases means that the market may continue to see reduced demand unless there is a stabilization in the cost of precious metals.