Consumer Demand in China and India Supports Growth in Global Diamond Jewellery Sector
Global polished diamond consumption is primarily dominated by demand from the diamond jewelry sector, which reached US$79 billion (nominal) in 2015, a decrease of 2.5% over 2014. The fall in demand was mainly due to unfavorable currency movements, and economic slowdowns in China and other emerging markets. An economic slowdown contributed to slow growth in Chinese diamond sales, and weak consumer spending accounted for negative growth in India. Other markets also saw declines in diamond jewelry sales values, driven by large currency devaluations against the US dollar.
Global demand for diamonds is estimated to remain skewed in favor of emerging markets, specifically China, followed by India because of its new wealthy middle class. These two markets will equal the size of the US – the world’s biggest consumer – by 2020. Between 2015 and 2020, global demand for diamond jewelry is expected to record a CAGR of 6.4%, with China and India together expected to consume around 50% of the global consumption, while global supply of polished diamond is expected to grow at an average of 4% per year over the next four years to 163Mct (million carats) in 2019, resulting in a demand-supply gap of around 5-6% in 2019.
About this report
GlobalData’s “Global Diamond Mining to 2020” report covers comprehensive information on global diamond mining industry, global diamond reserves by country, diamond reserves by major operating mines and diamond grade, the historical and forecast data on global rough diamond production. The report also includes factors affecting demand for diamond, profiles of major diamond producing companies in the world and region-wise information on the active, exploration and development diamond projects.