The Diamond Insight Report 2016, published by De Beers over the weekend, shows some interesting trends concerning consumer behavior in jewelry shops. According to the report, Millennials spent more than $25 billion on diamond jewelry in 2015 in the four largest consumer markets – the US, China, Japan and India.
Millennials (ages 15-34 in 2015) purchased more than any other generation, and account for almost half of the total retail value of new diamond jewelry acquired in the four largest markets.
In the top four markets, which account for 73% of global diamond jewelry demand, the potential Millennial market for diamond jewelry is more than 220 million people. Meanwhile, the Millennial generation is not expected to reach its most affluent life stage for another 10 years, meaning this demographic also represents the diamond sector’s largest growth opportunity.
According to the report, self-purchasing of diamond jewelry is an important and growing acquisition route among Millennials, with this generation’s self-purchases in the US representing 31% of all non-bridal diamond jewelry pieces acquired in 2015. Given the differences from previous generations’ buying behaviors, De Beers says that the diamond industry will need to adopt effective strategies for maintaining and growing demand from the Millennial consumer group.
All in all, despite lower rough diamond demand in 2015, consumer diamond jewelry demand remained robust at US$79 billion, driven by 5% growth in the US.