Another season, and another series of exciting developments in the global polished diamonds market. This time around, diamond manufacturing and design firms have witnessed fluctuations in demand, price, and production levels that will influence their long-term plans in more ways than one. Let’s explore the top stories.
India has long been a powerhouse in the global jewelry industry and this trend continued into Fiscal Year 2022-2023. According to the latest figures, jewelry exports from India increased by 2.48% over the previous year, with a total of 3,00,462.52 crores – or over $36 million US dollars – in shipments worldwide.
The majority of export growth was concentrated in gold products, which with the help of the recently implemented India-UAE Comprehensive Economic Partnership Agreement (CEPA), climbed year over year by 17%.
“India’s gem and jewelry industry has shown remarkable resilience and perseverance in the face of global challenges.” Vipul Shah, Chairman of GJEPC, said in a statement.
He went on to note why some products have fared better than others;
“Global challenges affected the demand for diamonds in India’s key markets, including the USA and China… India encountered difficulties due to inconsistent Russian rough diamond supply and challenges with beneficiation, as countries such as Namibia, Botswana, and Angola prefer to have their rough diamonds cut in their own countries.”
That’s not to say the long-term outlook is bleak for diamond manufacturing and design overall. It may very well be the opposite of that—Vipul and other experts anticipate a stabilization of the global polished diamond market in Fiscal Year 2023-24.
American outlets like CNBC report sharp declines in both domestic and global diamond prices, and industry heavy-hitter De Beers records double-digit decreases. However, to date, China appears to be weathering turbulence in the global polished diamonds market well. That’s according to its state-owned media outlet Yicai Global, which recently released results from an informal survey of well-known diamond brands in the country.
Leysen Jewellery, Kimberlite Diamond, and Chow Tai Fook Jewellery, among other retailers, say they’ve yet to see tangible impacts on local market prices. In fact, one salesperson from Chow Tai Seng has been quoted stating prices in their store have not fallen, but have actually been increasing over the past two years.
The reasons for this, experts say, are multifold. China boasts a uniquely strong domestic consumer base and robust corporate culture, which supports internal demand for luxury goods like diamond jewelry.
The Chinese Customs Authorities’ recent campaign against diamond smuggling also appears to be helping. After cracking down on $855 million worth of diamonds in 2020, consumption of diamonds in the country has become more transparent, channeling money into the pockets of legitimate diamond retailers.
Environmental concerns are top of mind for many large businesses today, but especially for diamond house brands and corporations. They face increasing pressure to reduce their environmental footprint while trying to remain profitable and competitive.
The diamond industry has responded by introducing a slew of initiatives designed to improve the sustainability of its operations. This includes everything from improved energy efficiency measures in manufacturing processes to better water management and initiatives that support a circular economy.
In May, De Beers publicly recommitted itself to reaching carbon neutrality by 2030 with a special emphasis on initiatives at its mines in Botswana and Canada. The leader in polished diamonds hopes to positively impact the local biodiversity of the communities in which it operates.
In another example, luxury retailer ALROSA is establishing new climate and environmental strategies to decarbonize its business model. It’s already a couple of years into its five-year sustainability program, which was implemented in 2021, and continues to work toward a shared 2050 vision of a zero-carbon diamond industry.
New technologies and processes, such as kimberlite carbon absorption (which involves capturing and sequestering carbon from the atmosphere), are also being embraced by many as a potential solution to maintaining sustainability in the diamond industry.
While diamond industry news is ever-changing, one thing has and always will remain constant: the importance of staying up to date on the latest developments.
From an economic perspective, keeping abreast of new market trends can help diamond manufacturers and designers better understand their customer’s needs and adjust their business practices accordingly.
Chroron Group is proud to be a trusted name in diamond industry news, providing reliable updates backed by decades of experience in the industry. Learn more about how our solutions for rough diamonds and polished diamonds can help you capitalize upon the ever-evolving marketplace today.