The findings from De Beers Group’s Diamond Insight Report 2015 showed a 3 per cent rise in global diamond jewellery sales last year, with figures exceeding US$80 billion (AU$113.9 b) for the first time.
It was said that consumer demand increased in each of the major diamond markets – those that account for 75 per cent of worldwide sales, including the US, China, Japan, India and the Gulf – with 2014 representing the fifth year of consecutive expansion since the global recession.
However, the report noted that global diamond jewellery demand in 2015 would likely be “relatively flat” compared to last year due to the continued strength of the US dollar and the economic slowdown in China.
Although global rough diamond production value lifted 6 per cent to US$19 billion (AU$27 b), production volume dropped 3 per cent to 142 million carats.
Three greenfield mines started production last year but the report stated that the “project pipeline remains sparse” and that supply would likely plateau near the end of the decade.
“[Rough] diamond demand is likely to be lower in 2015 as higher levels of stock in the midstream and downstream work through the system,” the report read.
India featured heavily in the study as an emerging opportunity for the diamond sector due to its widening consumer base, changing retail landscape and increasing affluence.
The report also outlined three key trends influencing the diamond retail industry. These included increased demand for branded diamond jewellery; a rise in the number of jewellery stores in developing Asian markets and a decrease in established markets such as the US; and the continued increase of online sales in both developed and developing markets.
Positive outlook
Commenting on the report, De Beers CEO Philippe Mellier 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.”
Mellier noted, however, that the challenges were expected to be short term, adding that the industry had “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,” he said.
“There are also further exciting growth opportunities in the main consumer markets and India is a great example of this. Already one of the world’s largest markets for diamond jewellery, the growth of the middle class in India over the next decade is set to make a major contribution to growing diamond demand.”
The Diamond Insight Report is an annual summary of the diamond industry’s performance that is based on De Beers’ data and insight as well as other industry sources.
The 2015 report can be downloaded here.
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