Prolonged growth in the natural diamond sector in China and Hong Kong can be expected on the back of strong consumer appetite, particularly among younger buyers, revealed an industry study.

According to Chow Tai Fook Jewellery’s 2023 Jewellery Consumer Trends Report – Shaping the Future of Jewellery Consumption in China and Beyond: Preferences and Desires of Generation Z and Millennials, market outlook remains positive amid macroeconomic uncertainties as natural diamonds are continuously favoured for their value proposition and emotional appeal.

“As a jewellery category, natural diamonds have a strong long-term growth trajectory, supported by continued appetite for diamonds among consumers in mainland China and Hong Kong,” said Simon Hui, director, Diamond Management Centre at Chow Tai Fook. 

The survey revealed that 51 per cent of respondents intend to purchase natural diamond jewellery over other gemstones. Among consumers who prefer wearing diamond jewellery, 61 per cent consider natural diamond jewellery suitable for daily wear.  

Buyers also associate natural diamond jewellery with important occasions like weddings and graduations, to name a few. 

Meanwhile, 74 per cent of respondents regard natural diamonds as more valuable than lab-grown diamonds (LGDs). Consumers view diamond jewellery as ideal for weddings as symbols of eternal love and loyalty. It is also a popular gift to commemorate milestones. Similarly, mainland Chinese and Hong Kong consumers believe natural diamonds hold an unrivalled position of prestige. Only 17 per cent of all respondents prefer LGDs.

The survey also highlighted solid demand for pure gold jewellery in the two markets, with 61 per cent of respondents saying they wear pure gold jewellery as daily accessories. Consumers likewise associate pure gold jewellery with Chinese traditions and celebrations.

“Pure gold jewellery holds a cherished place in the hearts of consumers, underscored by its reputation for value preservation and its association with Chinese tradition,” said the report. “Approximately 60 per cent of mainland Chinese and Hong Kong consumers respectively reported purchasing pure gold jewellery to preserve value, particularly amid recent economic conditions.” 

Among those surveyed, Gen Zs (aged 18 to 24) were most attracted to pure gold jewellery. The appeal of gold also extends beyond cultural and investment considerations as it resonates with 64 per cent of Gen Zs who purchase pure gold jewellery as a form of self-reward or daily use, suggesting the market for gold is poised for continued growth. 

Chow Tai Fook commissioned IPSOS, an independent multinational market research firm, for this study. Respondents included 5,000 online participants aged 18 to 40 across 507 cities in mainland China and Hong Kong. Consumers were surveyed between August 23 and September 5 this year.