Millennials spent over US$25 billion on diamond jewellery in 2015: De Beers

 Millennials spent over US$25 billion on diamond jewellery in 2015: De BeersThe Diamond Insight Report 2016, published by The De Beers Group of Companies noted Millennials to be high spenders for diamond jewellery in 2015. Millennials spent more than US$25 billion on diamond jewellery in 2015 in the four largest consumer markets, acquiring more than any other generation, according to the report.

Despite Millennials (those aged 15-34 in 2015) facing more financial challenges than their parents’ generation, they already account for almost half of the total retail value of new diamond jewellery acquired in the four largest markets – the US, China, Japan and India.

In the top four markets, which account for 73 per cent of global diamond jewellery demand, the potential Millennial market for diamond jewellery is more than 220 million people. Also, as per the report, the Millennial generation is not expected to reach its most affluent life stage for another 10 years, emphasising the diamond sector’s largest growth opportunity.

Bruce Cleaver, CEO, De Beers Group, said: “Millennials are already expressing very strong demand for diamond jewellery in the major consumer markets, acquiring more than any other generation. Most encouragingly, however, Millennials are still 10 years away from their most affluent life stage and the generation comprises more than 220 million potential diamond consumers in the four main markets. This gives the diamond industry a major opportunity and to capitalise it fully the industry needs to continue innovating and investing across the value chain.”

Some purchasing trends among the Millennials include self-purchasing of diamond jewellery – an important and growing acquisition route with this generation’s self-purchases in the US representing 31 percent of all non-bridal diamond jewellery pieces acquired in 2015.

The report noted that in order to maintain and grow demand from the Millennial consumer group, the diamond industry would need to adopt effective strategies. Alongside suggesting ways in which the industry could capitalise on the opportunity with the Millennial generation, the report also found that:

– Despite lower rough diamond demand in 2015, consumer diamond jewellery demand remained robust at US$79 billion, driven by five per cent growth in the US.

– China, the second largest market, also saw growth, albeit at a lower rate (three per cent in local currency). In India, consumer demand slowed as a result of a more restricted consumer credit environment and overall weakness in consumer spending.

– Consumer demand growth will continue to be generated from the US and Asia, particularly China and India, driven by increasing household income over the next 10 years.

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