The future looks bright for the diamond industry, with a projected rebound in demand from 2022 to 2024. The report commissioned by the Antwerp World Diamond Centre indicates that diamond jewellery sales are expected to return to pre-pandemic levels during this time period, with China leading the way in the recovery efforts. Factors such as the impact of lockdowns, government support, and the increasing trend of online sales will all contribute to the pace of this anticipated resurgence, as highlighted by Bain consulting group.
Despite the challenges faced by the diamond industry leading up to 2020, the report remains optimistic about its ability to recover from the effects of the COVID-19 pandemic. Olya Linde, a partner at Bain, is confident in the industry’s potential for a strong comeback. China is projected to fully revive its diamond jewellery demand this year, with India expected to follow suit by the end of 2023 or 2024, and the U.S. forecasted to recover by 2022-2023.
Looking ahead to the upcoming years, Bain forecasts that rough diamond production will remain steady from 2023 to 2030, with few new mine projects entering the market. The growth of affluent consumers in China and India is anticipated to be a driving force behind the global diamond industry’s progress. In 2020, diamond production experienced a 20% decline, while rough diamond sales dropped by 33% as miners reduced supply to stabilize prices amidst weakening demand.
Despite the hurdles faced by the diamond sector, it fared better than the broader personal luxury market encompassing watches, apparel, and accessories. While diamond jewellery sales decreased by 15% compared to 2019, the personal luxury industry saw a more significant 22% decline. Looking forward, potential challenges to the diamond market’s recovery include the threat of a double-dip recession and competition from other luxury goods. Nevertheless, the report offers a cautiously hopeful outlook for the diamond industry’s path in the years to come.
For more information on the diamond industry’s recovery and trends, visit
Bain’s Global Diamond Industry Report 2021 and
ADAMAS Institute for Knowledge & Learning.
