In a significant shift in the global luxury market, India has surpassed China to become the second-largest market for diamonds. This shift was confirmed by Al Cook, CEO of the UK-based De Beers Group, during an interview with Bloomberg. Cook attributed this growth to India’s robust double-digit market expansion, which contrasts with the declining demand in China.
According to Cook, “The good news is that India has taken over where China was, and India is now the second-largest market in the world for diamonds, and that’s growing at double-digit rates.”
China’s Economic Slowdown and Luxury Demand
The decline in China’s diamond market can be linked to its broader economic slowdown, which has affected demand in the luxury sector. Cook noted that while there is some stabilization in Chinese demand, the recovery will likely be a gradual process. “The first thing we’ll see is stabilization of Chinese demand, but quite honestly, we see the regrowth of Chinese demand being a rather longer-term story,” he stated.
India’s Surge in Domestic Consumption
While India’s diamond exports—especially to the United States and China—have experienced a decline, this has been offset by a surge in domestic diamond consumption, further strengthening India’s position in the global market.
Lab-Grown Diamonds vs. Natural Diamonds
Cook also discussed the growing influence of lab-grown diamonds, particularly in the United States, where their rise has affected the demand for natural diamonds. He emphasized the importance of promoting the authenticity and legacy of natural diamonds, especially as lab-grown alternatives gain popularity. Comparing the two, Cook said, “You know, lab-grown diamonds… it’s a little bit like buying a poster of the Mona Lisa and putting it up in an art gallery, telling people it’s the real thing.”
India’s Growing Role in the Diamond Industry
As India’s diamond market continues to expand, analysts expect it to play a crucial role in shaping the global demand for luxury diamonds. De Beers’ focus on championing the story of natural diamonds will be essential as it navigates the rise of lab-grown diamonds.
With China’s luxury market slowdown and India’s impressive growth, the global diamond industry is undergoing a transformation, positioning India as a key player in the luxury and jewelry sectors.
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