Why Are China's Freshwater Pearls Increasing in Price
Over the past few years, the price of freshwater pearls has been steadily rising, with a rapid increase starting in 2022, resulting in a price surge of 30-40%. The supply of organic gems like pearls is closely related to agriculture and the environment, and is particularly influenced by environmental changes and pandemics.
In this post, we will explain each of the factors that brought the pearl prices increase as well as assess what the future holds.
- Sharp Decline in Cultivation Scale
- COVID-19 Impacts Pearl Processing Progress
- Pearl Jewelry is in High Demand in China
Sharp Decline in Cultivation Scale
The scale of pearl farming has declined dramatically. In a bid to protect the ecological environment, China has reduced the area of pearl cultivation, resulting in a decline in the yield of freshwater pearls from 1979 tons in 2014 to 475 tons in 2021.
With the dramatic reduction in cultivation areas, pearl farmers are unwilling to continue farming non-nucleated pearls which yield lower economic benefits. By May 2023, non-nucleated pearls were almost entirely out of stock. Pearl farmers have begun to selectively breed nucleated pearls, which require higher technology, produce pearls with better luster and roundness, and thus have increased value.(How to Know Pearls Worth? What are the 7 value factors used to judge pearl quality?)
Currently, with the development of new technologies such as drip feeding and nucleated planting, we can reduce environmental pollution, increase the yield per unit area, and improve pearl quality. (These advancements can help address the issue of declining pearl production. In other words, these pearl manufacturing innovations have the potential to enhance the pearl wholesale market, including the freshwater pearls wholesale sector and pearl suppliers around the world, from pearl wholesalers in Australia to pearl suppliers in the USA. Therefore, the future looks bright for both pearl companies and customers interested in purchasing bulk pearls for sale, or even specialty items like metallic Edison pearls or AAA pearls in bulk.)
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COVID-19 Impacts Pearl Processing Progress
Due to the pandemic, many workers couldn't promptly arrive at major pearl processing hubs like Shanxia Lake. Only a small number of local employees were able to work normally. During the pandemic, many workers found jobs in their hometowns and no longer chose to work here, resulting in a sharp decline in the number of workers. This led to a rapid increase in wages, which grew from 3500 yuan/month to 6000 yuan/month, and hiring workers remained challenging. The entire processing hub was unable to sort and process enough pearls in time to meet market demand, impacting pearl jewelry wholesale businesses, pearl suppliers, and even pearl company direct sales.
Pearl Jewelry is in High Demand in China
With the rise of live streaming and purchasing agents in China, pearl styles have become more fashionable and are loved by the younger generation. They've quickly become a new favorite in the jewelry world. Some young Chinese girls have told us that compared to the previous vintage style, pearls are now seen as youthful and fashionable. The sales of pearl jewelry from 16 billion in 2021 to 24 billion in 2022.
One of the greatest features of pearls is that they can cater to different budgets. "If you don't look closely, most people can't tell the difference between a pearl that costs a few hundred dollars and one that costs a few thousand." There are $6 pearl earrings and pearl necklaces that cost over $7000. Regardless of your budget, you can find what you want. Pearls, unlike diamonds that dazzle or gold that is extravagantly luxurious, have a gentle nature. Combined with fashionable elements, they are suitable for both banquets and daily wear. Many girls find it hard to resist the allure of pearl jewelry. Therefore, if you're looking to buy pearls wholesale, whether they're freshwater pearls wholesale, loose pearls in bulk, or Edison pearls, there's always a market ready for these timeless pieces of jewelry.
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In Conclusion
From the article, we've understood the reasons for the increase in prices, and as supply and demand balance out, prices will stabilize. For instance, by enhancing cultivation techniques to boost pearl yield, prices could potentially decrease (assuming demand remains stable). Limitations on cultivation areas and increased labor costs are factors that we can't control.
At Eusharon, we are committed to providing the highest quality pearls with the utmost standard of service. Thus far, our long-standing industry relationships have helped offset the trends discussed while enabling us to provide a steady supply of beautiful pearls to our global customers. Whether you're seeking pearls for sale, freshwater pearls wholesale, or are a pearl supplier looking to bulk up your offerings, we assure you of quality and reliability in our service.
