China's Gold Jewellery Market Contraction Drives Export Push
China's gold jewellery market is experiencing a sharp contraction, with volume falling 30% year-on-year in the first half of 2026 to 136 tonnes. However, this decline in domestic demand has not been matched by a decrease in total consumption value, which rose 5% to RMB 143.7 billion (approximately US$21 billion). This discrepancy is largely due to high gold prices propping up the value figure.
The contraction in China's gold jewellery market is not just cyclical, but also reflects structural changes in consumer preferences. Younger buyers are prioritizing design over weight, with self-wear purchases rising to 44% in 2026 from 27% in 2024. Investment products have also become increasingly popular, overtaking jewellery as the largest share of total Chinese gold consumption.
In response to declining domestic demand, Chinese gold jewellery manufacturers are shifting their focus to export markets, particularly the Middle East and India. They are producing 'hard pure gold', a fabrication standard that combines high purity with durability, making it suitable for inlaid gemstones and other decorative features. This value-added repositioning is expected to help Chinese producers compete in premium foreign markets.