De Beers: Global Diamond Jewelry Demand +3% in 2014, Reaches $81Bn High

(IDEX Online News) – Global demand for diamond jewelry increased 3 percent in 2014 to reach a new $81 billion high, according to data published by The De Beers Group of Companies.

The data showed positive growth in consumer demand for diamond jewelry in local currency terms in 2014 across the world’s top five diamond markets, which account for about 75 percent of global demand.

Demand in the US, still the world’s largest diamond jewelry market, was particularly strong, increasing 7 percent on 2013 levels to $37 billion.

China also saw significant global growth, with demand increasing 6 percent in 2014 to RMB 62 billion ($9.9 billion). De Beers said while this was below 2013’s growth rate, it still represented a substantial increase owing to the rapid increase in the growth of the country’s consumption base.

The Indian market saw growth of 3 percent to INR 220 billion ($3.5 billion), with lower consumer confidence in the first half offsetting a stronger second half. However, the depreciation of the rupee against the dollar meant that the Indian market saw a 1 percent decrease in US dollar terms.

Although sales growth over the holiday season accelerated in India, leading to expectations for a continued strengthening of growth rates in 2015, the fourth quarter of the year saw a slower pace of growth across the luxury goods category in both the US and China.

In the US, there was a trend towards less Christmas gift shopping immediately before Christmas, driven by early retail promotional activity while growth in China was affected by a softer macroeconomic environment and the protests in Hong Kong.

Nevertheless, the outlook for diamond jewelry sales growth in 2015 is positive across all main markets as retailers anticipate another year of growing consumer demand. De Beers says that optimism among retailers is highest in the US and India, while growth in China is expected to pick up after the Chinese New Year.

Philippe Mellier, chief executive, De Beers Group, said, “2014 was another strong year for diamond jewelry demand across the world, as we saw continued growth across both mature and quickly developing markets. Retailers are also positive about the prospects for 2015 and, while there are some potential headwinds, the stage is set for another good showing across the major consumer markets.

“As the number of middle class households in the major consumer markets is set to grow by hundreds of millions in the years ahead, the medium to long term prospects for the diamond industry are also exceptionally strong if the right investments continue to be made across the value chain.”