Hong Kong’s jewellery industry expects the city’s natural diamond market to rebound, particularly with the return of tourists from China and heightened seasonal gifting demand, a recent trade survey revealed.

Conducted in August by NielsenIQ in collaboration with the Diamond Federation of Hong Kong, China (DFHK) and De Beers Group, the natural diamond trade survey featured 200 respondents, including DFHK members as well as retailers, wholesalers and manufacturers.

Nearly half of the respondents believe the natural diamond market will perform positively over the next 12 months, while 33 per cent expect stability, “reflecting a cautiously optimistic outlook driven by strategic shifts in product design, pricing and consumer engagement,” according to the survey.

The city’s tourism recovery had a positive impact on the business of 29 per cent of respondents over the past 12 months, while the gifting season bode well for 24 per cent of the participants.

Top gifting occasions – Valentine's Day (69 per cent), engagement or wedding (67 per cent), and Christmas (59 per cent) – are expected to be the leading occasions for sales.

Rings were cited as the best-selling products, with a significant preference for diamonds weighing between 0.5 and 1 carat and priced around HK$25,000 (around US$3,217).

Price, the 4Cs (carat, cut, colour, clarity) and certification were the primary considerations for consumers when purchasing natural diamonds.

“Consumers prioritise simplicity and emotional resonance in their jewellery choices. Social media platforms, particularly Xiaohongshu, have become vital channels for engagement and discovery,” the survey noted.

Industry initiatives

Meanwhile, 46 per cent of respondents plan to increase their investment in promoting natural diamonds.

The survey showed a growing emphasis on technology adoption and sustainability practices within the industry. Nearly all respondents have utilised diamond detection instruments, primarily in retail environments, while 75 per cent have implemented sustainability initiatives such as recycling programmes and sustainable sourcing, leading to improvements in consumer trust, brand reputation and staff engagement.

This reflects a broader shift towards transparency and sustainability that aligns with global consumer expectations.

“Over the past few years, Hong Kong's natural diamond market has entered a phase of recalibration. This evolution reflects a complex landscape shaped by economic uncertainty, shifting consumer values and increasing competition. The outlook for the market remains cautiously optimistic, with a significant portion of respondents expecting positive performance in the coming year, demonstrating resilience in the face of ongoing challenges,” the survey remarked.