By Shane O’Neill, CMO
It’s no secret that the engagement ring market has been thrown off-kilter over the last few years, and the COVID-19 pandemic did more than just disrupt in-store foot traffic – it paused life plans. According to Signet Jewelers' quarterly reporting, and as we’ve discussed before, a significant drop-off in dating and engagements during the pandemic has meant fewer couples are in-market for engagement rings. This decline, compounded by economic headwinds, has left jewelers asking the same question: when will we see things return to “normal”?
Well, let’s dig into what that data and larger industry trends are showing now, and what they can tell us about engagement ring sales in 2025 and beyond.
Pandemic Disruption: The Long-Term Impact on Relationships
Signet’s reports highlight a key issue: the pandemic put dating and relationship milestones on pause. Social distancing, lockdowns, and the reduction of events meant that fewer couples got together, fewer progressed to engagements, and ultimately, fewer are looking for rings today. While engagement ring sales have rebounded slightly from the pandemic lows, they are still well below where they should be in a normal year.
The general feeling is that we’re not likely to see pre-pandemic sales levels return until around 2026 or 2027. It’s not a quick fix, as we’re now dealing with a long-term shift in the dating and marriage landscape. People took time to get back to dating, and even now, life milestones are happening later than before.
Shifting Market Trends: Affordability and Personalization
Lab-Grown Diamonds and Alternative Stones
There might be a bright spot in the data, though. Younger consumers are increasingly looking for affordable engagement options – and lab-grown diamonds fit the bill. They’re typically much cheaper than natural diamonds and some perceive them to carry a sense of “doing good” that resonates with Gen Z and millennials. Lab-grown options have been a growth driver for many retailers, and as budgets stay tight, this category is expected to continue growing through 2025.
But it’s not just affordability – it’s about individuality, too. The days of buying a standard solitaire are fading, as more couples look to personalize their rings. Many have capitalized on this, with expanded customization options that cater to people’s desire for a one-of-a-kind look. Couples today don’t just want a ring; they want their ring, and personalization is proving to be a key differentiator for engagement ring retailers.
Economic Pressure and Value-Driven Purchases
Inflation and economic uncertainty are also keeping customers cautious with spending. As a result, many are gravitating towards financing options like Affirm, which allows them to pay over time. This approach is helping jewelers keep engagement rings accessible even when disposable income is tight. Value-driven products, from mid-tier engagement rings to lab-grown options, will continue to appeal in 2025, especially as buyers look to balance budget constraints with making meaningful purchases.
Digital and Omnichannel Strategy: Meeting the Customers Where They Are
The pandemic didn’t just change how people meet – it changed how they shop. Customers want the flexibility to explore their options online, whether for ring customization or research, and then to have a smooth experience in-store. For jewelers, an integrated online and in-store approach isn’t just a “nice to have” anymore – it’s a competitive necessity. If 2025 is about meeting the customers where they are, then that’s increasingly online.
Key Takeaways for 2025 and Beyond
- Slow Market Recovery: The engagement ring market won’t likely return to pre-pandemic levels until 2026-2027 as dating and marriage patterns normalize.
- Lab-Grown Diamonds as a Growth Driver: With their affordability and ethical appeal, lab-grown diamonds will be a significant contributor to engagement ring sales in 2025.
- Personalization: Customization options are becoming table stakes. Consumers increasingly want personalized rings that reflect their values and style.
- Affordability & Financing: Value-oriented products and financing options are essential to attracting budget-conscious couples, especially in a high-inflation environment.
- Digital Integration: A seamless digital and in-store experience is critical. As more couples research and buy online, jewelers must deliver on a consistent omnichannel strategy.
Final Thoughts
The engagement ring market may have slowed, for some obvious reasons, but it’s far from stagnant. We’re seeing a fundamental shift in how couples approach marriage, and that’s reflected in their shopping habits. From lab-grown diamonds to custom designs and sustainability, today’s consumers want more value and meaning from their purchases.
As we look to 2025, it’s clear that retailers who embrace these shifts will be best positioned for success. While a full recovery might be a couple years out, there’s a huge opportunity for jewelers who can connect with the values, expectations, and lifestyles of modern couples. It’s not about bouncing back to how things were – it’s about moving forward with how things are.
