Record $81bn diamond jewellery demand in 2014

Global demand for diamond jewellery hit $81 billion in 2014, a 3% increase compared with the previous year and a record high.

This is according to new industry insight data published today by The De Beers Group of Companies.

The data showed there was positive growth in consumer demand for diamond jewellery in local currency terms in 2014 across all the top five diamond markets, which between them account for about 75% of global demand.

Market analysis also showed that:

• Consumer demand in the US, the world’s largest market for diamond jewellery sales, was particularly strong, increasing 7% on 2013 levels to a total of $37 billion
• China was also a significant driver of global growth, with demand increasing 6% 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 3% 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 1% 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.

De Beers said 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.”

Philippe Mellier, chief executive of the De Beers Group, said: “2014 was another strong year for diamond jewellery demand across the world, as we saw continued growth across both mature and quickly developing markets. Retailers are also positive about the prospects for 2015 and, while there are some potential headwinds, the stage is set for another good showing across the major consumer markets.

“As the number of middle class households in the major consumer markets is set to grow by hundreds of millions in the years ahead, the medium to long term prospects for the diamond industry are also exceptionally strong if the right investments continue to be made across the value chain.”