Amber is renowned as "soft gold" and in the past was exclusively favored by imperial nobles and Buddhist monks—people with deep cultural backgrounds and aristocratic lineage. Amber boasts a rich variety of colors and a warm, smooth texture that sets it distinctly apart from other mineral gems. Moreover, amber is one of the Seven Treasures in Buddhism. It comes in hues ranging from the yellow traditionally reserved for royal use to the red deeply cherished by the Chinese, and even dreamy shades of blue. Some pieces are crystal-clear and translucent, others feature intricate patterns and swirling veins, while still others contain perfectly preserved insects or tiny creatures, telling future generations captivating stories from tens of millions of years ago. Combined with the surge of popularity among film and television stars over the past few years, amber has successfully catered to the diverse consumption needs of different customers across multiple dimensions.

In recent years, China’s amber market has experienced rapid growth. The number of processing, wholesale, and retail enterprises, as well as the workforce involved in the industry, have all expanded rapidly, making it a major highlight in the jewelry sector and attracting widespread attention both within and beyond the industry. In 2014, I was fortunate enough to gain a relatively deep understanding of the amber industry. After more than a year of observation and research, I’ve developed some preliminary insights into China’s amber industry. I’d like to share these thoughts with you all here; please feel free to point out any inaccuracies or areas for improvement.

I. Main Raw Material Production Areas

Currently, amber on the Chinese market mainly comes from countries including China, Myanmar, Baltic coastal nations, the Dominican Republic, and Mexico. In China, jewelry-grade amber is primarily mined in Fushun. However, the original amber deposits there have now largely been exhausted, and most of the amber currently circulating in the market consists of stockpiles previously held by coal miners. Fushun amber is particularly renowned for its abundance of insect-inclusions; it features rich, subdued hues, a soft luster, and a warm, smooth texture, making it highly favored among amber enthusiasts—especially those who collect insect-inclusive amber. On the Chinese market, amber from the Baltic region, Myanmar, the Dominican Republic, and Mexico is more commonly available.

II. Industry Scale

According to surveys, there are currently 20,000 people nationwide who specialize in the amber industry, and there are over a thousand amber businesses of various sizes. In 2015, the industry’s output value was approximately 10 billion yuan.

The processing and distribution centers are mainly concentrated in Guangdong and Yunnan, with a small presence in Fushun, Liaoning. In Guangdong, the primary materials processed include Baltic, Dominican, Mexican amber, as well as some Burmese amber. Tengchong in Yunnan specializes in the processing and sale of Burmese amber, with much of the activity centered around the former site of the jade market.

In the wholesale market, southern wholesale enterprises are mainly concentrated in Liwan District, Guangzhou, while northern enterprises are primarily located in Panjiayuan and Shilihe Markets in Beijing. Under the leadership of Fushun Amber, Fushun in Liaoning Province has developed distinctive wholesale and retail markets.

In the retail market, prior to 2014, amber retail was predominantly dominated by specialized retailers, mainly concentrated in first-tier cities such as Beijing and Shanghai. Comprehensive jewelry retailers had relatively few operations in this segment. Starting from 2014, as the economy slowed down and sales of other jewelry categories declined significantly, several comprehensive jewelry companies gradually began to expand their product lines to include amber. In the settings and carving markets, amber products are mostly beads and pendants. In recent years, the market share of amber settings and carvings has been steadily increasing. Most setting work is outsourced to jewelry processing factories; fewer standalone amber-setting workshops have been established. This has greatly boosted the business volume of jewelry processing factories. Previously, some factories that specialized in jade and colored gemstone settings quickly adapted to the specific craftsmanship requirements for amber products. Carving pieces come in various sizes—some large, others small. For most established factories, smaller carved pieces have become a key part of their business, as certain raw materials can only be used effectively for carving after removing impurities and flaws. The craftsmanship level of carved pieces continues to improve steadily. Large amber carvings account for a relatively small share of the market. As China’s jade-carving skills continue to advance, large amber carved ornaments have increasingly appeared at various carving competitions. Due to amber’s low hardness and its inherent waxy luster, it poses particular challenges in terms of subject selection and craftsmanship, placing higher demands on carving artisans. There remains considerable room for improvement in large carved pieces, particularly in design concepts and processing techniques. Currently, many carving artisans who previously worked with jade, Shoushan stone, Huanglong jade, or bamboo have started working with amber. Some of the techniques and methods they’ve developed for other materials are now gradually being applied to amber carvings, thereby accelerating the overall advancement of amber-processing technology.

III. Existing Issues

(1) The industry has been developing too rapidly, and its extensive growth model urgently needs to undergo a transformation. In recent years, as economic growth has slowed down, the industry’s rapid expansion has attracted significant attention from investors—both from outside the jewelry sector and from companies operating in other segments within the jewelry industry itself. The influx of capital will undoubtedly boost industry development and promote improvements in amber processing techniques; at the same time, it has intensified competition among industry players. Enterprises and professionals who have been engaged in the amber industry for over a decade—or even longer—have deep emotional ties to the sector. They are equally concerned about the industry’s sustainable development and corporate profitability, and they cherish both equally. However, some newly entering investors are more focused on the amber industry’s relatively large profit margins compared to other jewelry categories, placing greater emphasis on the relationship between investment and returns.

Due to the relatively low barrier to entry in amber processing, many skilled workers from large factories have embarked on entrepreneurial journeys. A couple might set up a small workshop: what they pick out in the morning could very well be sold at the market by afternoon. These small workshops are concentrated mainly in Yanchuan, Songgang, Shenzhen, where they’ve spontaneously formed a mini-market. Because of their small-scale nature, these workshops can only cater to small retail businesses looking for specific items—rather than meeting the demands of larger wholesalers and retailers. Nevertheless, thanks to their quick transaction cycles and large number of such workshops, they do exert a certain degree of dynamism on the market. This business model is beneficial for entrepreneurs’ incomes, but it poses constraints on fostering highly competitive, industry-leading processing enterprises and on promoting the long-term development of the sector.

(2) Product homogenization is severe. Similar to other jewelry categories, amber products suffer from a narrow product range. As soon as a creatively novel product appears, it quickly gets rapidly replicated by competitors in the market. If the craftsmanship is also similar, the only remaining competitive edge is price.

(3) High-end consumption is constraining industry development. China’s traditional consumption habits tend to be either nonexistent or the very best—though personally, I believe consumer goods and collectibles are two entirely different concepts. As our living standards continue to rise, we’re increasingly focused on enjoying jewelry and accessories rather than merely owning and passing them down through generations.

(4) Consumers still harbor a preference for foreign brands and tend to make irrational purchasing decisions. Most of the raw materials used in China’s amber market come from overseas, and while these products enjoy relatively favorable prices compared to those abroad, the majority of consumers remain fixated on buying directly from the place of origin, believing that products sold by foreign merchants are inherently superior. At one jewelry exhibition, the author observed that the same product displayed at a domestic company’s booth attracted little interest, whereas when placed on an overseas company’s booth, it quickly sold out. Moreover, many non-professional consumers travel to the countries of origin specifically to buy amber—clearly demonstrating that “you’d never know how much safer domestic consumption is unless you’ve been fooled elsewhere.”

(5) Counterfeit products undermine consumer confidence. A small number of unscrupulous individuals and businesses, tempted by enormous profits, have leveraged advanced technology to produce highly sophisticated amber imitations that, in terms of overall appearance, often prove more appealing to consumers than genuine amber. Unless one has extensive experience with amber, it can be extremely difficult to distinguish between the real thing and the fake. When sold, these amber imitations are typically priced slightly lower than natural amber, catering to the consumer preference for high-quality goods at affordable prices. As a result, it’s often non-professional “bargain hunters” who fall victim to such scams. Through word-of-mouth among these unsuspecting consumers, a misconception gradually takes hold—that there are many counterfeit ambers on the market, thereby eroding consumer confidence. In reality, however, genuine amber products still make up the vast majority of those available on the market.

IV. Some Thoughts

(1) Win-win cooperation and mutual support: Amber traders from different producing regions should refrain from attacking or disparaging the product quality of other regions. Given the numerous amber-producing areas, the characteristics of amber from different regions exhibit significant differences. For the amber market, this diversity of product categories precisely meets the diverse consumption needs of various consumer groups. By jointly safeguarding the healthy development of the amber market, the entire industry will reap benefits.

(2) Integrate resources, control the source, and stabilize the market. The amber industry is currently facing challenges such as instability in the raw-material market and a need to further enhance its international voice. Most of China’s amber product raw materials rely on imports. The intense competition for these raw materials has inflated suppliers’ expectations, driving up raw-material prices steadily—a trend that is detrimental to the industry’s long-term stable development. Meanwhile, at the domestic level, the rapid proliferation of small, family-run workshops, while boosting market activity, poses a threat to the industry’s sustainable growth. Smooth, sustained development is a blessing for any industry; sharp price spikes and plunges must be avoided. It is recommended that the industry work together to control the supply of raw materials at the source, thereby ensuring price stability. We hope that the soon-to-be-established World Amber Alliance will play a key role in making this happen.

(3) Strengthen the analysis of end-customer needs and develop targeted products. Currently, the amber market faces prominent issues such as severe product homogeneity and a limited variety of styles. At the processing, wholesale, and retail stages, we encourage industry practitioners to think creatively and design and develop products tailored to different consumer groups based on their religious beliefs, cultural habits, and ethnic characteristics. This will help avoid the situation where everyone is competing by lowering prices, ultimately leading to industry-wide decline.

(Four) Correctly guide consumption concepts to ensure that every piece of amber is fully appreciated for its unique value. Amber is a magical gift from nature to our planet; each piece of amber has its own story, and each should be cherished by humanity. Natural things naturally possess their own distinctive characteristics. The expectation that every single piece must be a masterpiece could lead us into consumption misconceptions. Just look at German Chancellor Merkel’s amber necklace—there’s good reason to believe that the future of the amber industry will be even brighter.

(5) Strengthen industry self-discipline and enhance consumer awareness of product information. Guided by the principle of “serving enterprises, standardizing the industry, and fostering industrial development,” the China Amber Association has actively promoted industry self-discipline over the years. Within the Amber Branch of the China Amber Association, it is stipulated that each member must conduct business with integrity and is strictly prohibited from selling counterfeit amber. To provide retailers and consumers with a reliable and trustworthy procurement platform, in 2015, the Amber Branch of the China Amber Association organized top-tier domestic manufacturers and wholesalers to participate—under the banner of the Amber Branch delegation—in the spring, summer, and winter exhibitions hosted by the China Amber Association in Beijing, as well as in the Shanghai exhibition. This initiative has offered numerous retail enterprises seeking to enter the amber market a safe and credible sourcing platform, earning widespread recognition and approval. In 2016, the Amber Branch delegation of the China Amber Association will once again participate in the summer, winter, and Shanghai exhibitions hosted by the China Amber Association. The Amber Branch of the China Amber Association will lead its members in setting a high standard for honest and ethical business practices in the amber industry, enabling retailers to operate with confidence and ensuring that consumers make informed purchasing decisions.

(6) Follow the law of value and practice rational consumption. Since the association does not have enforcement powers, what we can do is actively promote and publicize businesses within the industry that operate with integrity, thereby minimizing the room for counterfeit goods to exist. Here, we’d also like to remind everyone: when shopping, always adhere to the law of value and align with current market conditions. Pursuing excessively low prices without considering other factors will inevitably increase the risk of being deceived. No one can possibly become an expert in every field; instead, we can leverage the platforms provided by industry associations and third-party intermediary service agencies to safeguard our consumer choices.

V. The amber market has a bright future. China has a large population, and people’s living standards in various regions have steadily improved over time, creating enormous market potential. Guided by the principles of innovation, harmony, openness, and shared prosperity, industry colleagues working together with one heart and one mind will surely forge a bright future for the amber industry.