Millennials and Gen Z to drive the Diamond Market
Published On : Mar 17, 2021
Diamond Market Snapshot
The generation Z and millennials are more into spending on diamonds. In China, 80% of the entire demand for jewellery constitutes diamonds. Natural diamonds are chiselled using diamond cutting tools. The synthetic diamonds get produced using HPHT (high pressure, high temperature) and CVD (Chemical Vapour Deposition) processes. With production cost getting reduced, demand for synthetic diamonds is increasing at an exponential rate in the forecast period. This factor is bound to boost the diamond market in the near future.
Green synthetic diamond powder is used to polish various natural diamonds and the other metals. By type of product, the diamond market comprises natural and synthetic. By application, it’s industrial and jewellery. The synthetic diamond powder gets used in the form of abrasive along with core drilling in construction and metal machining. The other applications in construction sector include wire sawing and hand sawing.
North America holds more than 50% of the market share. This could be credited to an increasing demand for “diamond rings” for engagement in the US. The country has more than 40K retail stores. Fred Meyer Jewellers, Signet Jewellers, and Zale’s are the jewellery sellers holding majority of market share.
Europe stands second with females preferring diamonds on occasions like engagements, wedding anniversaries, and birthdays. Along with natural diamonds, synthetic ones are gaining a significant market share. The Asia-Pacific is expected to grow at the fastest rate in the forecast period due to millennials opting for diamond jewellery. LATAM and Central America are also putting their best foot forward on this count. They have close to 11,500 retail jewellery stores altogether. The PDE (panama Diamond Exchange) is dedicated to diamonds and coloured gemstones in these two regions since the year 2015.
The key market participants include Rio Tinto, ALROSA, and De Beers Group. These players address the upstream business. The new entrants find it difficult to enter upstream as established players are stay put. It needs to be noted over here that natural diamonds’ prices tend to be volatile with uncertainty surrounding demand and supply, but regarding the diamonds nurtured in the labs, there are no such constraints whatsoever. As such, the OEMs are emphasizing on introduction of lab-grown diamonds to cater to jewellery applications. Along these lines, De Beers, in May 2018, announced new-fangled laboratory-grown “Lightbox” brand of diamonds.
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