Global consumer demand for diamond jewellery increased marginally to US$80 billion in 2016. Consumer demand in the US, which remained the fastest growing region, climbed more than four per cent to exceed US$40 billion for the first time, supported by job creation, wage growth and a strong stock market.
Stable macro-economics, job creation, wage growth, a strong stock market and improved consumer confidence underpinned a demand increase. The US continued as the main driver of global growth, accounting for around 50 per cent of global diamond jewellery demand.
The jewellers’ strike and demonetisation initiative led to a decline in demand in local currency, while weakness of the rupee versus the US dollar led to a greater decline in US dollars. Diamond jewellery consumption has continued to decline in H1 2017 but at a slower rate, and sentiment hasimproved.
Demand from consumers in the Gulf declined as a result of slower economic growth, increasing inflationary pressures and the negative impact of continued oil price weakness.
Source: De Beers-commissioned consumer and retailer research, and analyses.
In 2016, the US gained share in polished diamond demand due to continued growth in diamond jewellery demand from consumers, while Japanese growth was influenced by the yen/US dollar exchange rate.
1 Greater China includes Mainland China, Hong Kong and Macau.
Sources: De Beers-commissioned studies and retailers’ publicly available information.
Bridal diamond jewellery continues to be the foundation of the industry, but products popular with Millennials and for female self-purchase are helping to spur growth.
Multi-diamond jewellery pieces are seeing greater levels of consumer interest, with retailers reporting strong sales.
Single women’s acquisitions and spend are increasing, leading to growth in self-purchasing in non- bridal, discretionary jewellery categories.
Many consumers are spending more on diamond jewellery, with retailers reporting an increase in the US$1,000 to US$4,999 category.