The report concludes that while consumer demand for diamonds remained strong in 2018, challenges in the midstream – including tightening financial regulations and a surplus of smaller polished diamonds, as well as currency depreciation – caused problems.
Rough production increased by 1 per cent for the year, surpassing estimates of a 3 per cent reduction.
The report also explored the changing meaning of diamonds to consumers, noting opportunities for marketing the stones as an ‘expression of modern love’ outside of traditional engagements.
Commitment diamonds, partner gifting before and during marriage or while co-habiting, and gifting between same-sex couples were specifically emphasised.
Diana Mitkov, senior insight and analytics manager De Beers, said, “There are many more opportunities for the diamond industry to help consumers express love beyond celebrating these traditional milestones. We should stop talking about ‘bridal’ and talk instead about love and commitment.”
Still, the company’s research found that 72 per cent of US brides receive a dia-mond engagement ring; additionally, the share of US women buying their own engagement ring has doubled to 14 per cent in just five years. Women who bought their own ring spent, on average, 33 per cent more than men.
In China, 47 per cent of brides now have a diamond engagement ring; it was less than one per cent in 1990, according to De Beers.
Nearly three-quarters of US individuals in same-sex relationships viewed diamonds as ‘important in celebrating life’s special events’.
De Beers found that branded jewellery is becoming increasingly important for engagement and commitment gifting – particularly in the Millennial and same-sex couple segments.
As a result of the report’s findings, De Beers will launch new advertising campaigns aimed at the US and China and increase its $US170 million ($AU245 million) annual marketing budget, including an extra $US10 million ($AU14 million) allocated to advertising during the remainder of 2019.
The report was published after De Beers released its cycle eight results, which reflected the continued downward trend in rough diamond sales over 2019. When compared with the same period last year, revenue fell 39 per cent, from $US482 million ($AU696 million) to $US295 million ($AU426 million).
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