Pearl farming is experiencing sustained growth, driven by rising global demand. Auctions organized in Hong Kong by Paspaley Pearls recorded their best sales figures in five years, with more than 150,000 pearls sold for over USD 13 million. Notably, baroque pearls also sold very well, highlighting a strong market trend.

However, production is growing faster than demand. Around 33,000 pearls remained unsold and will have to be offered at upcoming auctions. This oversupply is putting downward pressure on prices.

Notable Quality Improvements

Producers attribute the improvement in quality to better grow-out conditions, particularly in farms in Indonesia, the Philippines, and Australia, which specialize in South Sea pearls.

In the Philippines, studies have shown that the biodiversity of pearl farms is 21% higher than that of unprotected sites, promoting not only higher-quality pearls but also the regeneration of Pinctada maxima populations.

Outlook for the Coming Year

For reasons still not well understood, the quantities of South Sea and Tahitian pearls are expected to decline next year, as pearl farmers have fewer oysters available for grafting.

According to Martin Coeroli, Managing Director of GIE Perles de Tahiti, this scarcity could lead to a 10–20% price increase, but mainly for 8 and 9 mm round pearls with exceptional luster and peacock-green color.

Robert Wan, of Tahiti Perles, the leading Polynesian producer, sold over 190,000 pearls at his last Hong Kong auction. To stabilize his profits without increasing production, he chose to price in euros, which are more stable than the US dollar, effectively raising prices in the American market.

Demanding the Best

More and more pearls now exhibit a so-called “metallic” luster, synonymous with exceptional quality.

Pearls are also getting larger: Akoyas now reach 9 mm and beyond, and South Sea keshi can exceed 15 or even 16 mm. This variety of sizes, shapes, and colors offers jewelers new creative possibilities, often built around a single pearl.

Demand Trends by Origin

Australian white pearls are enjoying record popularity. Pinctada maxima production is expected to reach 9 tons in 2006 — a 260% increase in just six years.

Whereas ten years ago, large round pearls and white baroques made up only 20% of the market, they now account for 50%. This shift has made prices more accessible to retailers while supporting demand.

Golden pearls produced in Indonesia and the Philippines are highly sought after, but the discovery of dyeing techniques — even without drilling — has led buyers to perform more laboratory testing, increasing costs.

Tahitian producers are praised for their rigorous quality control, which has helped protect the market from low-grade pearls. While some purists lament a nacre thickness sometimes as low as 0.5 mm, the Tahitian standard mandates a minimum of 0.8 mm — more than sufficient for a cultured pearl.

Focus on Akoyas

Japanese Akoyas have not lost their prestige despite their relatively thin nacre (0.5 mm). However, the distinctions between Japanese and Chinese pearls have blurred. Today, most necklaces combine Akoyas from both origins.

Experts remind consumers that a necklace labeled “Made in Japan” can perfectly well be assembled in Japan using pearls sourced from China — with quality being the only true standard that matters.