Editor’s Note
This analysis explores a significant shift in global diamond markets, linking a sharp price decline to changing social trends in China. As consumer behaviors evolve, their impact on traditional industries offers a compelling case study in economic interconnectedness.
An analysis suggests that the recent aversion to marriage persisting in China has led to a sharp decline in diamond prices.
On the 23rd, Hong Kong’s South China Morning Post (SCMP) reported that as demand for diamonds has plummeted in China, global wholesale diamond prices have fallen by about 40% over the past two years.
China’s diamond market, valued at $9 billion (approximately 13.1 trillion won), is the second largest in the world after the United States.
The number of marriages in China this year is expected to be 6.6 million, less than half the figure from 2013. Analysis indicates that a sharp increase in young people postponing or giving up on marriage is due to rising youth unemployment and an economic downturn.
Globally, including in China, the number of people seeking affordable lab-grown diamonds is increasing. While virtually indistinguishable from natural stones, their price is only about 10%.
Last year, the global lab-grown diamond market was valued at $15.3 billion. China produces approximately 95% of this total. According to the global jewelry industry, lab-grown diamonds now account for 15-20% of the entire diamond market, a significant increase from a 1% share in 2015.