Market interest in diamond jewellery in China could rise significantly, owing to improving economic fundamentals alongside a steep climb in the number of middle-class consumers by 2030, a De Beers Group report said.

Findings of the 2023 Diamond Insight Report also revealed that a projected increase in disposable income could help support long-term growth in demand for diamond jewellery in China.

Al Cook, CEO of De Beers Group, commented, “China now represents the largest market for diamond jewellery outside the US. So, our aim for this, our tenth Diamond Insight Report, is to focus on China…to look at its development, cut through short-term volatility, understand evolving customer desire for jewellery and identify opportunities for the future.”

The report said consumer demand for diamond jewellery in China has softened in recent years following the Covid-19 pandemic and other macroeconomic challenges, but it also pointed to potential for greater demand.

Specifically, it said up to 200 million Chinese consumers are set to enter the middle class by 2030 alongside an expected rise in household disposable income of more than a third over the same period. The report also discussed ways to meet the needs of different Chinese consumer groups. 

There is no doubt that natural diamonds, which rank among the top three most desired luxury purchases in China, appeal to Chinese customers. There is, however, a gap between intent to acquire and actual acquisition rates, which presents an opportunity for diamond jewellers, said De Beers.

For instance, quality, size and cost as well as design and colour play a significant role in the decision-making process of younger millennials, while for older millennials, design and size take precedence, closely followed by purity and price. 

“Retailers should therefore focus on a strong design ethos with top-quality diamonds and competitive pricing, while ensuring they communicate their commitment to ethical practices,” the study said.

Gen Zs, meanwhile, are guided by greater use of digital media, heightened interest in sustainability considerations, an ongoing journey to financial maturity and a propensity to purchase diamonds to mark birthdays. As such, retailers can establish strong digital touchpoints, align initiatives with Gen Z values, launch flexible payment options, or offer lower-priced entry-level pieces and special birthday promotions.

According to De Beers, the 55 to 65 age group is an important and growing segment, contributing approximately 9 per cent of the total market value in Tier 1 to 3 cities. “The self-purchase behaviour of this age group is particularly noteworthy. This demographic does not shy away from rewarding themselves with diamond jewellery.  In terms of product preference, this group shows a clear inclination towards necklaces and non-bridal rings,” the report noted.