Demand for diamond jewellery grew by 3%Staff writer ▼ | March 21, 2015
Global demand for diamond jewellery grew by three percent in 2014, rising to a new $81 billion high, according to The De Beers Group of Companies.
Study The De Beers Group of Companies
Consumer demand in the US, the world's largest market for diamond jewellery sales, was particularly strong, increasing seven percent on 2013 levels to a total of $37 billion.
China was also a significant driver of global growth, with demand increasing six percent in 2014 to a total of RMB 62 billion. Whilst this was below the growth rate in 2013, it still represented a substantial increase as the consumption base has grown so rapidly in recent years.
The Indian market saw growth of three percent in local currency terms to INR 220 billion, with lower consumer confidence in the first half offsetting a stronger second half. However, the depreciation of the Rupee against the US Dollar meant that the Indian market saw a one percent decrease in US Dollar terms.
Sales growth over the holiday season accelerated in India, where expectations going into 2015 are for continued strengthening of growth rates. However, 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. Meanwhile, growth in China was impacted by a softer macroeconomic environment and the protests in Hong Kong.
De Beers' surveys show that the outlook for diamond jewellery sales growth in 2015 is positive across all main markets as retailers anticipate another year of growing consumer demand.
Optimism among jewellery retailers is highest in the US and India, while growth in China is expected to pick up after the Chinese New Year. ■