(IDEX Online) - Global consumer demand for diamond jewelry 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 Group.
The US was the main driver of growth for the fourth consecutive year, where positive macroeconomics and strong consumer confidence saw demand for diamond jewelry increase 4% to $43 billion, representing more than half of total global demand. An increase in self-purchase of diamond jewelry helped drive demand, representing 33% of total US diamond jewelry pieces acquired in 2017.
Consumer demand in Mainland China, the world's second-largest consumer market for diamond jewelry, also returned to positive growth in 2017, reflecting the trend of the broader luxury goods sector. Demand increased 3% in local currency and 1% in US dollars, totaling $10 billion. 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 both stronger local demand as well as a resurgence of Mainland visitor shopping.
Bruce Cleaver, CEO, De Beers Group, said: "People around the world are spending more on diamond jewelry 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."
Demand for diamond jewelry in the other main consumer markets of India, Japan and the Gulf saw low single digit declines in US dollar terms, affected by a range of macro-economic factors and regulatory and exchange rate impacts. Consumer demand in other diamond jewelry markets globally increased overall.
The outlook for 2018 demand growth remains 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 added.