De Beers says 2014 was a strong year for diamond jewellery demand across the world—as the mining major said there was growth in mature and emerging markets.
The group stated that global demand for diamond jewellery grew by three per cent last year rising to a new $81 billion high, according to Diamond Insight Report.
According to the report, 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 per cent of global demand.
The consumer demand in the US, the world’s largest market for diamond jewellery sales, was particularly strong, increasing seven per cent on 2013 levels to a total of $37 billion while China was also a significant driver of global growth, with demand increasing six per cent in 2014 to a total of RMB 62 billion.
Equally, the Indian market saw growth of three per cent 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 one per cent decrease in US Dollar terms.
De Beers Chief Executive, Philippe Mellier said retailers are also positive about the prospects for 2015 adding that 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,” he stated.
De Beers revealed that 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.
“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.