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DE BEERS REPORT SHOWS ROBUST
BUT UNBALANCED GROWTH IN DIAMOND MARKETS

Global consumer demand for diamond jewelry increased by 2 percent in 2017 to stand at a record $82 billion, reported De Beers in its recently released Diamond Insight report, but a closer look at the data indicates that most of the growth was skewed by sales in the United States and China, while for much of the reminder of the world it was a relatively lackluster year.

In the United States, which represents more than half of global diamond jewelry demand, sales increased by 4.2 percent during 2017 to stand at $43 billion. This De Beers attributed to strong economic conditions and positive sentiment resulting from the late 2017 tax cuts passed by the U.S. Congress.

Among the consumer trends that were evident in the U.S. market, all of which helped expand diamond demand, were more design-heavy pieces of jewelry; an increased average spend on diamond jewelry by single women, who on average purchased more pieces with multiple diamonds and a higher number of carats; and increases in the average price being paid for diamond jewelry items online.

De Beers 2018 Diamond Insight report

Source: De Beers 2018 Diamond Insight report.

CHINESE CONSUMER CONFIDENCE AT 20-YEAR HIGH

Consumer demand for diamond jewelry in China grew by a more modest 0.9 percent in U.S. dollar terms, although it was 3 percent up in local currency, as the country’s economy strengthened, and consumer confidence reached a 20-year high.

Diamond jewelry was Chinese women’s most desired luxury gift in 2017, De Beers reported. For 68 percent of women aged 18 to 54 it is one of their top two choices, and diamond jewelry is particularly sought-after to single women aged 21–38, living in Tier 1 cities.

But in India, the world’s third largest national market, consumer demand continued to decline in 2017, albeit, at 2.5 percent the decline was at a slower rate than it was in 2016. This, De Beers said was due mainly to the government’s demonetization initiative, the introduction of the Goods and Services Tax and the continuing anti-corruption and anti-money laundering regulations

De Beers table

Source: De Beers 2018 Diamond Insight report.

DEMAND SLIPS IN JAPAN AND THE GULF COUNTRIES

Demand for diamond jewelry in Japan was down by 2.9 percent in U.S. dollar terms, main because of the depreciation of the yen against the U.S. dollar. It slipped even further in the Arabian Gulf region, where the decline was measured at 4.2 percent, because of what De Beers described as unfavorable macro-economic factors, particularly in Saudi Arabia, caused by low oil prices, limits on oil production and geo-political instability.

In terms of global market share, the United States led the pack with 48 percent, up from 47 percent in 2016.

China’s market share held steady at 16 percent, as did India’s at 6 percent and Japan’s at 5 percent.

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