(IDEX Online News) – Robust demand from the U.S., China and India will lead to a 5.6 percent annual growth rate in diamond demand in the coming decade, resulting in global consumption to $26.1 billion by 2020, according to a Bain & Company report.
The volume of rough diamond supply is forecast to grow at a slower pace of 2.7 percent annually reaching 157 million carats in 2020, below global demand, the firm said in its second annual report.
Another key finding is that lab-made diamonds are viewed negatively consumers in all key markets, many considering them "fake" or "cheap" and therefore not a major threat to natural diamonds.
The report, conducted in collaboration with the Antwerp World Diamond Centre (AWDC), relies among other, on a survey of more than 5,000 consumers in eight countries and research data generated by IDEX Online.
“The fundamental forces point to a bright outlook for the diamond market,” said Yury Spektorov, Bain & Company partner and co-author of the report. “However the global market is becoming increasingly diverse, so successful players will need to understand the changing forces in global wealth distribution, customs and consumer tastes.”
The report also identified a decline in demand due to the absence of generic marketing.