Diamonds Shine Brighter This Valentine’s : How Indian Jewellery Market Is Changing

Jewellery has always been a popular choice for Valentine's Day, making it a highly profitable season for jewellers. Traditionally, gold jewellery has dominated the market, but with the surge in gold prices this year, consumer preferences are shifting. More buyers are now opting for diamond-studded jewellery, which offers an elegant and luxurious appeal at a more affordable price compared to plain 22-karat gold jewellery.

Rising Demand For Diamond Jewellery

According to industry data, the demand for diamond jewellery has surged by up to 35 per cent this year, with individuals aged between 25 and 45 leading the trend. Many buyers are choosing diamond-studded pieces priced between Rs 20,000 and Rs 50,000, making it a preferred option for young couples. Diamonds not only offer a more budget-friendly alternative to gold but also fulfil the aspiration of owning a prestigious piece of jewellery.

India's Growing Domestic Diamond Market

India's domestic diamond jewellery market has witnessed remarkable growth over the past two decades. In 2005, it accounted for just 2 per cent of global consumption. Today, that figure has risen to 11 per cent, making India the second-largest market for diamond jewellery worldwide, according to De Beers Group 2023 Diamond Insight report.
Diamond jewellery sales in India were valued at $4.6 billion in 2021 and increased by 8 per cent to $5 billion in 2022, as per the report. The growth trajectory has continued, with sales expected to reach approximately $8.5 billion to $9 billion this year.

At the InnovNXT, Forty Under 40 Leadership Summit, De Beers Managing Director Amit Pratihari highlighted that diamond jewellery demand remains concentrated in urban areas, with tier 1, 2, and 3 cities accounting for 80 per cent of all purchases.

Notably, younger consumers are driving this demand. Around 50 per cent of diamond jewellery buyers in India are under 35 years old, while millennials (28-43 years old) and Gen Z (12-27 years old) collectively make up 75 per cent of total purchases. Additionally, the number of mid-to-high-end consumers in India is projected to rise by 20 per cent between 2022 and 2030.

India: An Emerging Star In The Global Diamond Market

In 2024, India emerged as one of the few bright spots in the global diamond jewellery industry reporting a low-double-digit sales growth, according to US-based diamond analyst Paul Zimnisky. This growth contrasts with a decline in major international markets, such as the U.S., where diamond sales fell by a low-single-digit percentage, and China, where sales dropped sharply by a mid-double-digit percentage.

The Rise Of Lab-Grown Diamonds

As the cost of natural diamonds continues to rise, lab-grown diamonds are gaining significant traction. These alternatives are especially popular among budget-conscious consumers who seek high-quality diamond jewellery at a lower price point. Lab-grown diamonds offer an ethical and affordable option without compromising on brilliance, making them an appealing choice in today's evolving jewellery market.

With shifting preferences and evolving market trends, diamond jewellery, both natural and lab-grown, is poised to continue its upward trajectory, capturing a larger share of India's booming jewellery sector.