De Beers, a subsidiary of Anglo American, is gearing up to focus its efforts on the U.S. diamond market in 2019, anticipating a surge in demand for these exquisite gemstones. With a marketing budget exceeding last year’s $170 million, De Beers is preparing to roll out new campaigns targeting both the U.S. and China as pivotal markets for expansion.
While other regions are experiencing a decline in diamond sales due to trade tensions and protests impacting China, the U.S. stands out as a stronghold for diamond demand. In 2018, global consumer demand for diamonds rose by 2% to reach $76 billion, with China and the United States leading the growth at 5% year on year.
Esther Oberbeck, De Beers’ group head of strategy, unveiled that the company’s 2019 marketing endeavors will focus on self-purchase and the bridal market, based on recent research insights. The data revealed a significant uptick in U.S. women buying their own engagement rings, with women splurging an average of $4,400 compared to men’s $3,300.
Renowned for its Forevermark brand of rough diamonds and jewelry, De Beers is optimistic about the anticipated upturn in the rough diamond market as certain mines near the end of their operational lifespan, notably Rio Tinto’s Argyle mine in Australia.
In 2018, the U.S. market witnessed a robust demand for diamond jewelry, with a 5% increase to $36 billion, representing nearly half of the global diamond jewelry demand. De Beers’ research underscores that this demand is buttressed by sound macro-economic factors.
Although diamonds continue to be a popular choice for engagement rings, the trend of purchasing diamond jewelry as gifts for various occasions, including self-indulgence, now exceeds demand solely for weddings, signaling a shift in consumer behavior. De Beers remains upbeat about the growth prospects in the diamond market, especially in key markets like the U.S. and China.
For more information on the diamond industry, you can visit the following links:
De Beers Official Website
Anglo American Official Website
