De Beers CEO Bruce Cleaver
Photo by: Darlene Creamer
JOHANNESBURG (miningweekly.com) – Global consumer demand for diamond jewellery hit a new all-time high in 2017, climbing to $82-billion, a 2% increase on the previous year, according to industry insight data published by De Beers on Thursday.
The US was the main driver of growth for the fourth consecutive year, where positive macroeconomics and strong consumer confidence saw demand for diamond jewellery increase by 4% to $43-billion, representing more than half of total global demand.
De Beers added that an increase in self-purchase of diamond jewellery helped drive demand, representing 33% of total US diamond jewellery pieces acquired in 2017.
Consumer demand in mainland China, the world’s second largest consumer market for diamond jewellery, also returned to positive growth in 2017, reflecting the trend of the broader luxury goods sector.
Demand increased by 3% in local currency and by 1% in US dollar terms, totalling $10-billion, De Beers said, adding that the growth was supported by strengthening macroeconomics towards the end of the year and a 20-year high in consumer confidence.
In addition, there was a revival in the Hong Kong market in the second half of 2017, driven by stronger local demand and a resurgence of mainland visitor shopping.
“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,” said De Beers Group CEO Bruce Cleaver.
Demand for diamond jewellery in India, Japan and the Gulf saw low single digit declines in US dollar terms, affected by a range of macroeconomic factors and regulatory and exchange rate impacts.
Consumer demand in other diamond jewellery markets globally increased overall.
The outlook for 2018 demand growth remained 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, De Beers concluded.