Global diamond jewellery demand grew 3% in 2014

Global diamond jewellery demand grew 3% in 2014 to exceed $80bn (£51bn) for the first time, according to De Beers.

The Diamond Insight Report said this is the fifth consecutive year of growth since the global recession, while global rough diamond production rose 6% to $19bn (£12bn).

Consumer demand in 2014 grew in each of the top five diamond consuming markets – the US, China, Japan, India and the Gulf – which collectively account for 75% of global demand. The strength of the US dollar suppressed further global growth, which at constant exchange rates amounted to almost 5%.

Despite the strong performance, the report noted that the continued strength of the US dollar and lower demand growth in China is likely to mean that global growth in 2015 will remain stable on 2014 levels.

Although rough diamond production increased, production volume actually decreased 3% to 142 million carats. According to the report, rough diamond demand is likely to be lower in 2015 as higher levels of stock work through the system.

The report also revealed the extent of the opportunity presented by the growing economy and emerging middle class in India.

It said that, driven by a widening consumer base, economic development and increasing volumes, India’s diamond consumer market has achieved uninterrupted growth over the last 20 years and is now one of the largest consumer markets.

Phillippe Mellier, CEO of the group, said: “2014 saw strong levels of consumer demand across all key markets. Rough diamond demand was also strong in 2014, although we have seen more challenges in 2015.

“However the challenges faced by the sector in 2015 are expected to be short-term and the industry has excellent prospects. The long-term trend for demand has been positive, with consistent growth in demand for diamond jewellery since the 2008-2009 financial crisis.”