JOHANNESBURG (miningweekly.com) – Millennials spent more than $25-billion on diamond jewellery in the four largest consumer markets in 2015, according to the 'Diamond Insight Report 2016' published by De Beers Group.
Despite millennials facing more financial challenges than their parents’ generation, they already account for almost half of the total retail value of new diamond jewellery acquired in the US, China, Japan and India.
“Millennials are already expressing very strong demand for diamond jewellery in the major consumer markets, acquiring more than any other generation,” says CEO Bruce Cleaver.
In the top four markets, which account for 73% of global diamond jewellery demand, the potential millennial market for diamond jewellery is more than 220-million people.
Meanwhile, the millennial generation is not expected to reach its most affluent life stage for another ten years, meaning this demographic also represents the diamond sector’s largest growth opportunity.
The report notes that millennial consumers also display particular purchasing trends.
For example, self-purchasing of diamond jewellery is an important and growing acquisition route among millennials, with this generation’s self-purchases in the US representing 31% of all nonbridal diamond jewellery pieces acquired in 2015.
Given the differences from previous generations’ buying behaviour, the report points out that the diamond industry will need to adopt effective strategies for maintaining and growing demand from the millennial consumer group.
Alongside suggesting ways in which the industry could capitalise on the opportunity with the millennial generation, the report also found that, despite lower rough diamond demand in 2015, consumer diamond jewellery demand remained robust at $79-billion, driven by 5% growth in the US.
China, the second-largest market, also saw growth, albeit at a lower rate, while in India, consumer-demand slowed as a result of a more restricted consumer credit environment and overall weakness in consumer spending.
“Consumer demand growth will continue to be generated is the US and Asia, particularly China and India, driven by increasing household income over the next ten years,” the report said.