02 May 2016

Diamond jewellery market improved in the US as sales hit a record of US$39 billion in 2015.

Information from De Beers states that consumer demand in the USA was the main driver for global sales for diamond jewellery as it is the world’s largest market who grew from 42 per cent in 2014 to 45 per cent in 2015.

Chinese consumers also continued to increase their overall spending on diamond jewellery.

De Beers states that the Japanese, Indian and Gulf consumer markets saw some declines in local currency terms, with the strength of the US dollar further impacting growth rates in US dollar terms.

The strength of the US dollar during the year impacted growth at actual rates, with global consumer demand for diamond jewellery in US dollar terms reaching US$79 billion in 2015, a two per cent decline on the record US$81 billion seen in 2014.

Growth in the US was driven by sustained economic recovery, higher levels of job creation and wage growth.

Chinese growth, the second largest diamond market, registered positive growth at three per cent in RMB.

However, the statement says  consumer demand in India dropped by four per cent in 2015, affected by a number of factors impacting consumer spending including structural labour market issues and restricted consumer credit.

Consumer demand in Japan remained flat during the year in local currency. The Yen depreciation led to a double digit decline (down 13 per cent) in US dollar terms.

However, the jewellery retail trade benefitted from Chinese tourism spending, with Chinese visitors’ numbers doubling in 2015 compared with 2014.

Commenting on the Gulf region, De Beers says unfavourable macroeconomics continued throughout 2015, with oil price weakness, geopolitical instability in the Middle East, and lower numbers from Russia and China affecting the United Arab Emirates.

De Beers says demand for diamond jewellery in the rest of the world declined by 13 per cent as a result of macroeconomic weakness in emerging markets, particularly Russia and Brazil, and the strength of the US dollar which negatively affected growth in the Eurozone markets.

As for the 2016 outlook, De Beers says it is driven by expectations of positive but subdued global economic growth, with a weakening of growth in emerging markets and a fragile recovery in the advanced economies.

The US is expected to continue being the main driver of demand growth in 2016, sustained through moderately positive economic momentum and cautious consumer optimism. ENDS