India is one of the world’s largest consumer markets and its demographics are giving seller of rough diamonds De Beers very many reasons to smile.
In its Diamond Insight Report 2015, De Beers says India presents a huge opportunity through its growing economy and emerging middle class.
Philippe Mellier, CEO, De Beers Group, says: “…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.”
Excerpts from the report:
– Driven by a widening consumer base, economic development and increasing volumes, India’s diamond consumer market has achieved almost uninterrupted growth over the last 20 years. It is now one of the world’s largest consumer markets.
– The retail landscape is changing. Brands are also becoming increasingly important for Indian consumers as reassurance of quality and authenticity.
– As affluence continues to grow, more Indian women will be able to purchase diamonds. 75 million new Indian households are expected to see income rise above USD 5,000-6,000 in the decade, contributing to growing diamond demand.
– Meanwhile, the number of elite households is expected to triple over the next decade to 12 million, while the Super Elites are expected to quadruple in size and reach over three million households by 2024, presenting the industry with a further growth opportunity.
Globally too, diamond demand has been stellar. Demand for jewellery made by the precious stone rose three percent to exceed USD 80 billion for the first time in 2014, marking the fifth year of consecutive growth since the global recession.
However, Mellier adds indigestion in the midstream and downstream has impacted rough diamond demand this year, despite consumer demand for diamond jewellery being stable on the levels seen last year.