India has officially overtaken China as the world’s second-largest diamond market, according to Al Cook, CEO of the UK-based De Beers Group. In an exclusive interview with Bloomberg, Cook highlighted India’s rapid growth, which is propelling it to the forefront of the global diamond industry.
The surge in India's diamond market is being driven by strong domestic demand, even as exports of cut and polished diamonds have declined, particularly due to a drop in demand from the US and China. This shift has solidified India’s position, surpassing China as the key player in the diamond market amid China’s luxury sector slowdown.
“The good news is that India has now overtaken China and is growing at a double-digit rate, making it the second-largest global market for diamonds,” Cook commented.
While India’s diamond market flourishes, China’s luxury demand is suffering due to economic challenges. Cook noted that the slowdown in China’s economy has significantly affected its luxury sector, particularly diamonds. “China is facing a demand drop due to slower economic growth, and the recovery of demand in the country is expected to be a more gradual process,” he explained.
Additionally, Cook addressed the rise of lab-grown diamonds, which have impacted the natural diamond market, particularly in the United States. He acknowledged the growing appeal of lab-grown diamonds but stressed that they cannot compare to the authenticity and history of natural diamonds, which take billions of years to form. “Lab-grown diamonds may have their own charm, but they can never replicate the uniqueness of natural diamonds,” he remarked, drawing a comparison to reproductions of great masterpieces like the Mona Lisa.
As India continues to experience strong growth in its domestic market, the landscape of global diamond demand is shifting. The country’s rise compensates for the declines in exports, while China’s luxury market remains under scrutiny for future trends.