Market evolution: Precious stones (CN 7103) — 2015–2025

Introduction

This report examines the evolution of EU external trade in precious and semi-precious stones (excluding diamonds) classified under Combined Nomenclature code 7103 over the 2015–2025 period. The product category encompasses three subheadings: unworked stones (710310), worked rubies, sapphires and emeralds (710391), and other worked precious and semi-precious stones (710399). The data reveals a decade characterised by robust growth in trade values, a structural shift in the EU's net trade position, and significant realignment of partner relationships.

For full product definitions and scope, see the Scope & Definitions section.

1. From net exporter to net importer: a decade of structural rebalancing

The most striking development over 2015–2025 is the EU's transition from a modest net exporter to a substantial net importer of precious stones. This section examines the magnitudes and drivers of this shift.

1.1 The trade balance has deteriorated sharply

The EU's trade deficit in precious stones widened dramatically over the period:

Import growth (+62.6%) significantly outpaced export growth (+29.3%), causing the deficit to nearly triple. The peak deficit was reached in 2023 at −€632M before partially narrowing in the final two years.

Source: General Overview — Trade

1.2 Net import reliance flipped from negative to positive

The net import reliance indicator confirms this structural transformation. In 2015, the indicator stood at −35.2%, meaning the EU was a net exporter. By 2025, it had swung to +66.0%, reflecting deep import dependency. This 288% change underscores that the EU's role in the global precious-stone value chain has fundamentally shifted — from a processing-and-re-export hub toward a consuming market reliant on external supply.

1.3 Volume and price trends tell divergent stories

The divergence between volume and price trends reveals important dynamics:

Imports grew in both volume and price, indicating both greater physical quantities and a shift toward higher-value goods. Exports, however, declined in volume (−9.8%) while their unit price surged by 62.6%. This suggests that the EU has progressively specialised in exporting higher-value, processed stones while ceding volume to sourcing countries.

The export-to-import unit price ratio — roughly 6:1 — reflects the EU's position as a refiner and re-exporter of polished, higher-grade stones rather than a bulk trader in raw materials.

2. Geographic realignment: shifting partners and growing concentration in luxury markets

The decade saw significant changes in both the sourcing and destination markets for EU precious-stone trade, with distinct patterns on the import and export sides.

2.1 Imports: India and Madagascar gained the most ground

Among the EU's top import partners, India emerged as the dominant supplier, more than doubling its share from €75M to €159M (+112.3%). India's role as the world's leading gem-cutting and polishing centre explains this growth — the EU increasingly sources finished, worked stones from Indian processors. Madagascar (+198.7%) and Brazil (+91.5%) also posted strong growth, likely reflecting expanding mining output and direct sourcing of rough stones.

Source: Top partners — imports

Import concentration (HHI) remained broadly stable at around 940–950 (by value), indicating a relatively diversified sourcing base even as individual partners shifted.

2.2 Exports: the US and Hong Kong absorbed a growing share

On the export side, the United States (+105.8%) and Hong Kong (+83.6%) became the EU's largest export destinations, both more than doubling in value. These two markets — gateway to the American luxury consumer and to Asian jewellery hubs respectively — together accounted for €276M in 2025, or nearly half of all EU exports.

Source: Top partners — exports

Notably, the United Kingdom saw a halving of EU exports (−49.8%), a decline that likely reflects both the disruptions of Brexit and the re-routing of trade flows. Switzerland remained the single largest export partner at €208M, growing only modestly (+3.9%), consistent with its role as a stable, established trading hub for high-value gems.

Export concentration (HHI) declined from 2,906 to 2,538, indicating a modest diversification away from historical reliance on a few European-adjacent partners toward a broader set of global destinations.

2.3 EU member states: Italy dominates both flows, the Netherlands surges

Within the EU, Italy was by far the largest importer (€344M in 2025) and exporter (€217M in 2025), reflecting its centuries-old role as a global centre for gem cutting, particularly in cities like Valenza and Vicenza. Italy's imports doubled (+100.2%) and exports grew by 142.1% over the decade.

France remained the second-largest player on both sides, while Germany — despite declining exports (−27.4%) — maintained a strong position in imports. The most striking growth was registered by the Netherlands, whose imports surged by 675% (from €1.6M to €12.1M), potentially reflecting the emergence of Amsterdam as a gem-trading hub or shifts in customs reporting.

Source: Top reporters

3. Product composition, price shocks, and volatility patterns

A closer look at the three CN subheadings and the volatility data reveals a market shaped by structural specialisation and punctuated by significant price shocks.

3.1 Rubies, sapphires and emeralds dominate the import bill

The breakdown by product segment reveals that worked rubies, sapphires and emeralds (CN 710391) accounted for the lion's share of import value:

CN 710391 alone represented 64% of all imports by value in 2025. The unit prices for this category are extraordinarily high — averaging €86M per tonne — reflecting the fact that rubies, sapphires and emeralds are among the most valuable gemstones by weight.

CN 710399 (other worked stones) more than doubled in value, suggesting growing EU demand for a broader range of semi-precious and alternative precious stones — consistent with trends in the jewellery industry toward coloured stones beyond the "big three."

3.2 Exports are increasingly dominated by high-value worked stones

On the export side, the composition mirrors the import structure but with even higher unit values:

CN 710391 exports grew to €352M in 2025, confirming the EU's — and particularly Italy's and France's — specialisation in high-end, polished gemstones destined for luxury jewellery markets.

3.3 Significant price shocks were concentrated in 2019–2022

The volatility analysis identifies several notable supply-side and price disruptions:

Source: Supply shocks

The 2019 UK price shock (+423%) coincides with the period of Brexit uncertainty and may reflect a temporary surge in re-export unit values as shipments were frontloaded or reclassified. The 2021 India shock aligns with the post-COVID supply chain disruptions and the rapid recovery of Indian gem-processing capacity. The 2022 Switzerland shock (+129%) may reflect compositional effects — a shift toward higher-value stones being channelled through Swiss intermediaries — or broader inflationary pressures in the luxury-goods sector.

Among import partners, Mexico exhibited the highest price volatility (coefficient of variation: 2.89), followed by Russia (0.65) and India (0.66), reflecting the erratic and small-scale nature of certain sourcing flows. On the export side, the United Arab Emirates (CV: 1.93), South Africa (1.76), and Russia (1.74) showed the highest volatility.

3.4 EU domestic production has contracted sharply

Available production data indicates a dramatic decline in EU production volumes — from 18.2 million units in 2015 to just 80,000 units in 2025 (−99.6%). While this collapse in reported quantity may partly reflect changes in reporting practices or the discontinuation of supplementary-unit declarations for certain subheadings, the 20.1% decline in production value (from €482M to €385M) confirms a real contraction in domestic output. This trend reinforces the EU's growing import dependency: as domestic mining and rough-stone processing capacity shrinks, the bloc relies ever more heavily on external suppliers for raw and semi-processed materials.

Conclusion

Over the 2015–2025 period, the EU market for precious and semi-precious stones underwent a profound transformation. The bloc shifted from a net exporter to a deeply import-dependent economy, with its trade deficit nearly tripling to €425M. Import growth was driven primarily by India (the world's gem-cutting capital) and by surging demand for worked rubies, sapphires and emeralds — the highest-value segment of the market.

On the export side, the EU — led by Italy and France — consolidated its position as an exporter of premium polished stones, with unit prices rising 63% even as volumes declined. The United States and Hong Kong emerged as the most dynamic growth markets for EU exports, while the United Kingdom's share shrank post-Brexit.

The period was punctuated by notable price shocks, particularly around 2019–2022, linked to Brexit logistics, pandemic disruptions, and compositional shifts in trade flows. Meanwhile, EU domestic production contracted sharply, further deepening the reliance on global supply chains.

Looking ahead, the EU's position in this market is that of a high-value-added processor and consumer, increasingly dependent on a diversified but external network of suppliers for both rough and polished stones. The key vulnerabilities lie in the concentration of cutting capacity in a few third countries (notably India) and the price volatility inherent in a market for luxury, heterogeneous goods.