BRILLIANT UNDER PRESSURE – The Global Diamond And Coloured Gemstone Industry
Despite The Fact That The Majority Of High-End Consumer Industries Suffered During The Covid-19 And Cost-Of-Living Crisis The Diamond Sector Has Managed To Retain Its Sparkle & Lustre
Lockdowns, travel restrictions, and economic uncertainty reduced diamond jewellery sales by 15% in 2020, with most of the decrease occurring in the first and second quarters. However, in the face of shop closures, diamond retail sales shifted online, benefiting from consumers who could not spend money on travel or experiences and instead chose diamond jewellery. The fourth quarter saw a resurgence of demand, culminating in a solid holiday season worldwide.
The market for jewellery and gemstones has seen considerable growth due to the higher disposable income of luxury consumers. In order to protect themselves against counterfeit items, consumers in emerging economies such as Asia Pacific are gradually shifting away from traditional disorganised jewellery and toward organised branded products.
Furthermore, increasing knowledge of the benefits of shopping from organised, branded retail through various promotional techniques and promotions has led to increased jewellery consumption, which has driven the demand for gemstones in Asia Pacific and other areas.
Driving demand for jewellery as well as the inclusion of gems in jewellery items as a result of rising high-end consumer spending and changing lifestyles is likely to increase demand for jewellery products to beyond 2025, consequently increasing demand for diamonds and gemstones.
Focus on R&D initiatives to develop innovative products, as well as market expansion in emerging regions such as Latin America and Asia Pacific, is already providing new opportunities for the growth of the market.
Coloured gemstones (non-diamonds) have grown in popularity in recent years. According to research by The National Resource Governance Institute, prices have climbed by 100% in the previous decade. However, because it is dominated by informal operators and governments, the industry is undercapitalized and lacks technical knowledge. Due to inefficiency, enormous opportunities are often squandered. Through bribery, corruption, and waste, value is syphoned away.
Due To A Lack Of Funding And Investment – Large Discoveries Remain Underdeveloped!
Diamonds though, still reign supreme in the realm of precious stones. Diamond jewellery sales outnumber those of any other precious stone, and diamonds account for more than half of worldwide precious stone sales each year. However, the notion that diamonds are inherently more valuable than coloured gemstones is a misconception. In actuality, certain coloured gemstones are significantly more valuable than diamonds.
The $64 billion diamond jewellery retail market performed better than the personal luxury market, which contracted by 22% at current exchange rates in US dollars. Rough diamond production continued its downward trend, falling to 111 million carats, therefore, affecting the global supply potentially beyond 2026.
Every first-year economist is familiar with the result of a declining raw material supply line at source – surging prices throughout the supply chain!
Online sources: persistencemarketresearch.com, futuremarketinsights.com, bain.com
All opinions and views expressed or suggested by the Digital Zeitgeist are not necessarily the same opinions and views held by or suggested by GPM-Invest plus any and all partners, affiliates, parties, or third parties of GPM-Invest. Any type of media distributed by GPM-Invest IS NOT financial advice. Please seek advice from a professional financial advisor