Print this page

DOWNSTREAM

Global consumer demand returned to growth in 2016 as a result of further demand in the US. However, the strength of the US dollar against most currencies, along with macro-economic and political challenges, restricted growth in other markets.

GLOBAL

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.

US

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.

CHINA

Demand from Chinese consumers grew slightly in local currency, but saw a decline in US dollar terms. Positive growth has been seen in H1 2017.

INDIA

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.

JAPAN

Demand from Japanese consumers declined in local currency, as a result of weak economic fundamentals. However, yen appreciation against the US dollar resulted in Japan registering the highest positive growth rate in US dollar terms.

 

GULF

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.

REST OF WORLD

Decline in demand in Rest of World was caused mainly by adverse macroeconomics combined with weakening of local currencies against the US dollar in Russia, Latin America and the UK.

GLOBAL DIAMOND JEWELLERY VALUE GROWTH (USD)

GLOBAL POLISHED DIAMOND VALUE GROWTH (USD)

Source: De Beers-commissioned consumer and retailer research, and analyses.


GLOBAL POLISHED DIAMOND DEMAND SHARE BY GEOGRAPHY

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.


US CONSUMER TRENDS

1

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.

2

Multi-diamond jewellery pieces are seeing greater levels of consumer interest, with retailers reporting strong sales.

3

Single women’s acquisitions and spend are increasing, leading to growth in self-purchasing in non- bridal, discretionary jewellery categories.

4

Many consumers are spending more on diamond jewellery, with retailers reporting an increase in the US$1,000 to US$4,999 category.


LOOKING AHEAD

  • A relatively benign macro-economic environment should support global demand for diamonds in 2017. Geopolitical and policy uncertainties drive potential downside scenarios for the industry in the short to medium term.
  • With a positive economic momentum, US retailers expect further positive growth this year.
  • Retailers in China expect demand to continue to grow at a slightly faster rate in local currency.
  • In India, the effect of demonetisation has proved to be less severe than anticipated, but retailers are still cautious in their outlook.