Diamond industry growth in 2021 led by consumers prioritising spending on jewellery: De Beers
Last year saw historic growth for India’s diamond jewellery industry as families prioritised jewellery in the face of restrictions on travel and events.
India saw 22% growth in the diamond jewellery industry last year, De Beers India’s managing director Sachin Jain announced at an event in Pune on April 18. Not only did jewellery sales rise, there was an increasing consumer preference for diamond jewellery as opposed to just gold jewellery, he said.
“This is historic growth and can be attributed to more spending on jewellery than on travels or functions,” said Jain in Pune on April 18, the Indian Express reported. “Last year, the delta variant of Covid swept through the country with the government clamping in on travels and ceremonies. Thus people had more money to spend on jewellery which translated into the growth of the market.”
This year is unlikely to witness quite such historic growth for the diamond industry which began with a slightly rocky start as the Ukraine war caused uncertainty over the continued supply of Russian diamonds. Although this has now settled down, with Indian diamond importers able to continue working with partially Russian state-owned business Alrosa, there are other factors which could dampen sales growth.
As travel bans have mostly been lifted and events are in full swing, many families will be spending their discretionary income on things other than just jewellery. A return to larger scale weddings could help to boost jewellery sales but other wedding costs associated with larger events could also reduce a couple’s jewellery budget for the big day.
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