Editor’s Note
De Beers’ latest report highlights China’s pivotal role in the global diamond market, now second only to the U.S. Despite recent adjustments, the analysis underscores strong long-term growth potential, driven by economic recovery and evolving consumer preferences.
De Beers Group’s “Diamond Insight Report” focuses on the Chinese market. Through an analysis of consumer groups, regional characteristics, and market trends, the report points out that although China’s natural diamond market has undergone a phase of adjustment, it possesses ample long-term growth drivers, with multi-dimensional opportunities gradually emerging. The report shows that China has become the largest diamond jewelry market outside the United States. With improving economic prospects and an upgrade in consumption structure, demand for natural diamonds is expected to continue to be released.
The report provides an in-depth analysis of the behavioral characteristics of consumers across different age groups, revealing market opportunities arising from generational differences.
Millennials, as the current main consumption force, exhibit distinct stratification characteristics in diamond jewelry consumption. Younger millennials prioritize diamond quality and purity when making purchases, with design and color significantly influencing their decisions. Older millennials place greater emphasis on design and carat weight, followed closely by clarity and price. Both groups share a common focus on the uniqueness of diamond jewelry and the ethical responsibility of brands. This requires retailers to strengthen price competitiveness and communicate social responsibility while ensuring product quality.
The market influence of Generation Z continues to rise, with their share of diamond jewelry sales nearly doubling in recent years. This group is highly reliant on digital media, emphasizes sustainable development concepts, and prefers celebrating birthdays by purchasing diamonds. For this group, establishing digital touchpoints, launching products aligned with their values, offering flexible payment options, and providing entry-level diamond jewelry are key to unlocking their consumption potential.
Beyond mainstream consumer groups, the growth potential of several segmented customer groups and regional markets deserves attention.
The 55-65 age group accounts for about 9% of the diamond jewelry market in Tier 1 to Tier 3 cities, and its size continues to expand. This group has a strong sense of self-consumption, with 29% of their purchases categorized as “self-reward,” significantly higher than the 17% for the 18-54 age group. Their particular preference for necklaces and non-bridal diamond rings provides diversified consumption scenarios for the market.
Tier 4 cities account for about 10% of the national diamond jewelry market total, exhibiting unique consumption characteristics. Non-bridal diamond jewelry accounts for 85% of purchases, with 88% of consumption used for gifting. Within this, 35% is for wedding anniversaries, a proportion higher than in Tier 1 to Tier 3 cities. This market’s preference for non-wedding occasions provides a clear direction for brand expansion into lower-tier cities.
Affluent consumers, as a high-potential customer group, show a gap between their desire for diamond jewelry and their actual purchase rate, with design being a key constraint. Many affluent consumers who have not purchased diamond jewelry stated they “could not find a design they liked.” This group is enthusiastic about celebrating relationship milestones with diamond jewelry and has extremely high requirements for excellent design. Strengthening design innovation has become the core strategy to unlock this market.
China’s diamond market has achieved leapfrog development in just a few decades, becoming a significant global player. Faced with short-term market fluctuations, the industry needs to focus on changes in consumer demand, supporting the long-term growth of the natural diamond market through precise positioning and value communication. With the expansion of the middle class and the increase in disposable income, combined with a deep understanding of the consumption characteristics of different groups, China’s natural diamond market is expected to achieve high-quality growth amid structural adjustments. The industry needs to continuously unleash market potential through product innovation, channel optimization, and value communication.
