When will global diamond jewellery demand fully recover?

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Global Diamond Jewellery Demand Expected to Rebound Between 2022 and 2024

Global diamond jewellery demand is projected to return to pre-pandemic levels within the period of 2022 to 2024. This recovery trajectory is influenced by various factors, including differing lockdown policies, government stimulus measures, and the successful transition of retailers to online sales platforms. The diamond industry, which faced pre-existing challenges prior to 2020, is considered well-positioned for a significant rebound, according to a report commissioned by the Antwerp World Diamond Centre and prepared by consulting group Bain.
Regional Recovery Timelines

The pace of recovery is expected to vary across key markets. China's demand for diamond jewellery is anticipated to achieve a full recovery within the current year. In contrast, India's market is forecast to see a complete recovery by the end of 2023 or early 2024. The United States is projected to reach its pre-pandemic demand levels between 2022 and 2023.
Drivers of Future Growth

The long-term outlook for the global diamond industry is expected to be propelled by the expanding high and middle-class populations in China and India. This demographic shift is anticipated to be a primary driver for the industry's growth. Furthermore, rough diamond production is forecast to remain stable from 2023 to 2030, with a limited number of new mine projects anticipated to come online, which could support price stability and the overall recovery.
Impact of the Pandemic on the Industry

The Covid-19 pandemic significantly impacted the diamond market, with an estimated 20 per cent drop in diamond production in 2020. Rough diamond sales experienced a substantial decline of 33 per cent in 2020, following an 18 per cent year-on-year decrease in 2019, as miners curtailed supply to support prices amidst falling demand. Mining companies bore a considerable burden, with profit margins reportedly decreasing by 22 percentage points. Despite these challenges, the diamond jewellery market's sales drop of 15 per cent from 2019 was less severe than that of the broader personal luxury goods sector, which saw a 22 per cent decline.

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When will global diamond jewellery demand fully recover?

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