Natural diamonds, among Earth’s rarest geological formations, are created over billions of years deep within the planet’s mantle. These extraordinary gems are not just symbols of luxury but also finite natural resources. With no significant new diamond deposits discovered in recent years and a steady decline in diamond recovery, their scarcity continues to grow. This rarity, coupled with their unique formation process and enduring value, cements natural diamonds as an exclusive and irreplaceable commodity in global markets.“India has replaced China as the second-largest market in the world for natural diamond jewellery. With diamond acquisition rates in India still well below those in mature markets such as the US, this presents a significant opportunity to drive further growth in India’s natural diamond jewellery sector,” said Sandrine Conseiller, CEO of De Beers Brands.Beauty in rarityNatural diamonds are becoming increasingly scarce. Diamond recovery has dropped by 30% since 2005, with no significant new deposits discovered in recent years. This rarity enhances their appeal, making them a prized possession and a symbol of exclusivity.Economic shifts in the natural diamond industryThe natural diamond industry has witnessed notable economic shifts in recent years. Global production of natural diamonds has declined from over 175 million carats annually in 2005–2006 to 121 million carats in 2023.Despite this decline in supply, demand remains strong. The global diamond market was valued at approximately USD 97.57 billion in 2024 and is projected to grow to USD 138.66 billion by 2032, reflecting a compound annual growth rate (CAGR) of 4.5% over this period.“Natural diamonds benefit the countries from which they originate. The natural diamond industry supports the livelihood of 10 million people worldwide. It is accelerating its traceability initiatives and leveraging technology such as blockchain to bring transparency to its supply chains,” said Richa Singh, MD, India and Middle East, Natural Diamond Council (NDC).Market insightsAccording to the De Beers Diamond Insight Report 2023, demand for natural diamond jewellery in India surged by 20% in 2021, followed by a 15% increase in 2022.Post-Covid, India’s natural diamond market has expanded to USD 3.5–4 billion, growing up to 20% annually. Solitaire diamonds are emerging as a promising category across the country.A 2025 luxury fashion report by McKinsey & Co predicts that diamond-studded jewellery will drive the biggest growth in India, with a projected 21–23% increase. According to Bain & Co, natural diamond prices have grown by an average of 3% per year over the last 35 years.In July 2024, the United States, the world’s largest market for diamond jewellery, recorded a 6.5% increase in jewellery sales. Meanwhile, India now accounts for 11% of global demand for natural diamond jewellery, surpassing China to become the world’s second-largest market.Market and industry perspectives“Natural diamonds, when sourced from reputable suppliers, are increasingly recognised as a viable investment, even among younger investors. Their inherent rarity contributes to their appreciating heirloom value, solidifying their position as a distinctive and enduring asset,” said Rajesh Kumar Choudhary, investment banker and industry analyst.Read more at:https://economictimes.indiatimes.com/industry/cons-products/fashion-/-cosmetics-/-jewellery/indias-rising-demand-for-natural-diamonds-a-shift-in-global-market-dynamics/articleshow/118600992.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst (ICE MUMBAI)

Fonte notizia: The Economic Times