The Diamond Insight Report 2017, released by De Beers Group yesterday, said that global consumer demand for diamond jewellery at US$ 82 billion in 2017 “hit a new all-time high”.  This marks an increase of  two per cent over the  previous year.

For the fourth time in a row, the US emerged as “the main driver of growth”. The country’s   “positive macroeconomics” and “strong consumer confidence” saw demand for diamond jewellery increase four per cent to US$ 43 billion, representing more than half of total global demand, the study found. “An increase in self-purchase of diamond jewellery helped drive demand, representing 33 per cent of total US diamond jewellery pieces acquired in 2017,” De Beers said.

The world’s second largest consumer market for diamond jewellery, Mainland China, returned to positive growth in 2017, in line with  the trend of the broader luxury goods sector. In that market, demand increased three per cent in local currency and one per cent in US dollars, totalling US$ 10 billion. “Growth was supported by strengthening macroeconomics towards the end of the year and a 20-year high in consumer confidence,” De Beers elaborated. “In addition, there was a revival in the Hong Kong market in the second half of 2017, driven by both stronger local demand as well as a resurgence of Mainland visitor shopping.”  

Bruce Cleaver, CEO, De Beers Group, said: “People around the world are spending more on diamond jewellery than ever before and it’s encouraging to see consumers in the US, the world’s largest and most mature market, leading the way. While new designs and brand concepts played a key role in catching the consumer’s eye, it’s the timeless natural beauty, uniqueness and enduring value of diamonds that continues to resonate with people when looking to celebrate life’s special moments.”

The Insight Report says that demand for diamond jewellery in the other main consumer markets of India, Japan and the Gulf saw “low single digit declines” in US dollar terms, due to  “a range of macro-economic factors and regulatory and exchange rate impacts”.

Consumer demand in other diamond jewellery markets globally, increased overall.

De Beers stated that the outlook for 2018 demand growth remains positive in most of the main diamond consuming countries, based on solid world economic prospects, positive consumer sentiment and continued investment from the diamond industry in category marketing.