Thailand strengthens global gem hub role as industry faces new trade risks
GIT expects Thai gem and jewellery exports to grow about 10% this year while urging SMEs to prepare for RJC standards and US tariff pressures.
- Thailand is solidifying its position as a global gem hub, with exports projected to grow by 10%, by leveraging its expertise in gem cutting, polishing, and enhancement.
- The industry faces significant trade risks, including potential US tariffs that could impact competitiveness and increasing pressure to comply with stricter international standards for responsible sourcing.
- In response to these challenges and shifting consumer demand, Thai manufacturers are adapting by focusing on more affordable jewelry and utilizing a wider variety of gemstones.
- Competition from India's rapidly developing gemstone industry is another key pressure point, prompting Thai businesses to accelerate their adoption of global standards.
Thailand’s gem and jewellery industry is expected to continue expanding this year, with exports on course to grow by about 10%, as the country seeks to strengthen its position as a global gemstone hub while preparing for tougher international standards and potential US tariff pressures.
Sumeth Prasongpongchai, Director of the Gem and Jewelry Institute of Thailand (Public Organization), or GIT, said export value including gold had risen by about 20.02%, while exports excluding gold were worth around US$9 billion.
Part of the rise in export value has been driven by higher raw-material prices, while businesses and buyers in several countries have adjusted their strategies to manage risks and preserve asset values.
Thai manufacturers have also begun reshaping their product portfolios to control costs and better match consumers’ purchasing power.
Affordable jewellery and new gemstones gain ground
Looking ahead to next year, GIT expects consumers to increasingly favour more affordable jewellery.
In the mass market, manufacturers are making greater use of stainless steel, while demand for more accessible coloured gemstones is expected to expand.
Gemstones such as tourmaline, peridot and turquoise could provide opportunities for manufacturers to develop distinctive designs and stories around their products, helping create additional value.
Sumeth said one of Thailand’s biggest strengths remains its role as a centre for gem cutting and enhancement.
Although Thailand is not the source of all the rough gemstones used by the industry, large quantities of stones mined elsewhere continue to be brought into the country for cutting, polishing and enhancement before being exported to overseas markets.
“Thailand is increasingly recognised as a hub,” Sumeth said. “Foreign operators come here to develop collections and source gemstones and other materials.”
Maintaining Thailand’s expertise in cutting and gemstone enhancement would therefore be an important foundation for the industry’s future growth, particularly in the precious gemstone segment.
Competition from India adds pressure
India is also developing its gemstone industry rapidly and has strengths in the semi-precious stone segment, increasing competition in the international market.
Sumeth said Thai businesses therefore need to accelerate compliance with international standards, particularly those of the Responsible Jewellery Council (RJC).
RJC standards cover areas including production practices, environmental responsibility, responsible sourcing and supply-chain traceability. GIT has also been working on programmes to help Thai SMEs move towards RJC-aligned practices.
Most Thai gem and jewellery businesses are small and medium-sized enterprises, meaning compliance may require changes to factory operations, environmental management, production systems and sourcing procedures.
GIT is discussing ways to allow businesses that already meet recognised standards to remain within international supply chains while gradually moving towards the RJC framework.
Sumeth proposed an adjustment period of about five years, giving businesses, particularly SMEs, time to invest and upgrade their operations.
US tariffs could affect competitiveness
Potential US tariffs are another risk for the industry.
Sumeth said Thailand could face greater competitive pressure if the tariff rate applied to Thai products differed from rates imposed on competing countries.
The risk would be particularly significant for affordable jewellery and silver products, where margins and consumer demand are more sensitive to costs.
However, if Thailand faces tariff rates comparable with those of competitors, Sumeth said competition would again depend more heavily on product quality and finishing, areas in which Thai manufacturers have established strengths.
Industry supports up to 900,000 people
Thailand currently has about 125,000 registered operators in the gem and jewellery industry.
When workers throughout the supply chain are included — from cutting and polishing to manufacturing, plating, welding, wax modelling and retail — the industry involves an estimated 800,000–900,000 people.
Sumeth said maintaining Thailand’s hub status would require more than increasing export value.
The country must preserve its strengths in craftsmanship, gem cutting and enhancement while upgrading to international standards and narrowing cost disadvantages.
Those capabilities, he said, will determine whether Thai businesses can remain competitive as the global trade environment changes rapidly.
