Diamonds are a woman's best friend. So far, there is nothing disputing that logic, but De Beers in it's observation of the global trend finds that it is the millennial and Gen Z users setting the demand and not the woman alone.
In fact, millennial (age group 21-39), Gen Z (up to age 20), and the largely younger audiences are the go-to-market in the diamond business, if stats from De Beers are to be believed.
De Beers, the world's largest producer of diamonds in a report said that the two groups consumed as much as two-thirds of the $82 billion demand for diamonds last year.
The consumption of these two groups has been dominating in US and China, said De Beers in its annual report.
Millennial and Gen Z accounted for 63% of diamond jewelry demand in the US in 2017 and nearly 80% in China, De Beers said.
"The shift of consumer power to millennial and Gen Z presents considerable opportunities to the diamond industry, provided it commits to understanding these generations and adapts its marketing approaches to incorporate the needs and priorities of young people," De Beers said.
The report gains significant importance to the diamond industry which has usually grappled around issues such as Blood Diamonds and Synthetic diamonds in recent times.
Last year, the stiff competition from laboratory grown diamonds, especially identical stones marketed as a more ethical alternative and produced in a laboratory caused some resistance among the top players.
Jewelers such as Swarovski started stocking lab-grown stones. And soon, De Beers also joined the chorus. But lab-diamonds or synthetic diamonds are yet to make a major dent.
De Beers says that lab-diamonds account for a paltry 2% in global sales. The number on a global scale may be larger, but considering that the demand for diamonds has risen in the past two years, the growth for lab-diamonds has not been phenomenal.
The global demand for diamonds rebounded in 2017, posting a 2% growth in comparison with a year earlier. Demand in 2016 grew a modest 0.3% while in 2015 it had declined by 1.5%.
The increase has largely been attributed to growth in the US and China. US demand rose by 4.2% while in China the demand grew by 3%. The US diamond consumption has been estimated at $43 billion while in China it stands at RMB 66 billion.
In India, the demand has been tepid with numbers slipping by 2.5%. Ditto for Japan where the demand has dipped by 2.9%.
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