According to the most recent research report titled “2012 Global Diamond Industry Report” released by the global consulting firm Bain & Company, global diamond consumption is likely to record a compounded annual growth rate of 6%. The worldwide diamond consumption may surge by more than 60% by the end of this decade.
According to the report, the U.S. is far and away the world’s largest diamond market. The U.S. market revenues are more than three times the revenues of the No.2 market China and the No.3 market India. Bain & Company notes that women in the U.S. continue to crave diamonds, but popularity of diamond engagement rings among younger consumers is marginally slowing down. The report states the main reason for this being the fact that younger women show a growing preference for other luxury goods, especially consumer electronics.
China has grown rapidly into the world’s second-largest market for diamonds, with annual sales almost to the tune of $9 billion. Rising wealth, popular fascination with Western culture and the fast-expanding middle class have powered the market’s growth, with a boost from lower taxes and tariffs.
India is the third-largest global diamond market, with annual revenues approaching USD $8.5 billion, and growing rapidly. There are an astonishing 300,000 jewelry stores in India, seven times more than in the U.S. and six times more than in China.
The global rough diamond consumption is expected to reach $26.1 billion, primarily aided by increased demand from the growing middle classes in India and China. The study conducted in association with the Antwerp World Diamond Centre (AWDC) predicts that the global diamond demand will outpace supply, signaling extremely bright prospects for the industry in the years to come.