De Beers: US Diamond Jewellery Demand Hits Excessive of $41 Billion

June 04, 17 by Albert Robinson

(IDEX On-line) – Whole diamond jewellery demand from US customers elevated four.four p.c in 2016 to exceed $40 billion for the primary time, in line with business perception information printed immediately by De Beers Group.


Whereas slower US GDP progress within the first quarter of 2017 is more likely to have impacted diamond jewellery demand within the brief time period, the US has recorded 5 years of consecutive demand progress. US customers now account for roughly half of all diamond jewellery purchases globally – a degree not seen since earlier than the monetary disaster.


Though bridal diamond jewellery continues to be the muse of demand within the US, extra frequent acquisitions and the next worth of spend from single girls helped drive demand. In the meantime, self-purchase traits elevated amongst each single and married girls.


Fifty-seven p.c of self-purchased diamond jewellery is acquired by married girls, whereas a 3rd is from Millennials. Retailers additionally reported excessive ranges of client curiosity for multi-diamond items.


The info confirmed that customers are spending extra per piece on diamond jewellery, with retailers reporting a rise within the $1,000 to $four,999 class, De Beers claimed.


Globally, demand for diamond jewellery in 2016 elevated marginally in US (at precise trade charges) to $80 billion, with demand progress from the US offsetting a contraction in India.


·         Demand from Chinese language customers grew zero.6 p.c in native forex and has continued to enhance in early 2017, with strong gross sales round Chinese language New Yr contributing to the optimistic efficiency within the first quarter.


·         Demand from Indian customers began to return to extra regular ranges in 2017, following an eight.eight p.c contraction (in native forex) in 2016 as a result of jewelers’ strike, demonetization and trade charges.


·         Demand from Japanese customers declined 2.9 p.c in native forex in 2016, however progress in US reached eight.1 p.c as a result of power of the yen.


·         Demand within the Gulf was impacted by a difficult macro-economic surroundings, pushed by continued oil worth weak spot.


Additional marginal international progress in diamond jewellery demand (in US greenback phrases) is probably going in 2017.


Bruce Cleaver, CEO, De Beers Group, stated: “American customers proceed to specific sturdy want for diamonds, however their buying habits are altering quickly. Whereas bridal diamond jewellery stays basic, we’re seeing each single and married girls shopping for for themselves extra often and extra purchases being made on-line. In the meantime, merchandise reminiscent of multi-diamond jewellery are rising in popularity.


“Nonetheless, whereas US demand drove international progress in 2016, it’s rising demand from rising markets that’s behind the final 5 years being the strongest on file. Regardless of some markets dealing with difficult situations final yr, we see this pattern persevering with, with enhancements in demand from China and India, particularly, rising in 2017.”

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