India beats China to become world’s second-largest market for...

India has not only beat China in becoming the world’s most populous country, but it continues to leave China behind in other aspects as well. India has now moved ahead of China to become world’s second-largest market for diamonds. This marks a big shift in the global luxury landscape.  

De Beers Group CEO Al Cook revealed to Bloomberg that India has surpassed China as the world's second-largest diamond market. Cook credited India's strong double-digit growth for this shift, which starkly contrasts with China's declining demand. 

Talking about the reasons for the decline of China in diamond sector, he said, “Across the luxury sector in China, demand has declined as Chinese economic growth has faltered somewhat. Now we see that as a rather longer-term issue.” 

Cook believes stabilisation will take place in the Chinese market and observed that for China to recover from the current situation would be a time taking process. “The first thing we'll see is stabilisation of Chinese demand, which is coming through at the moment. But quite honestly, we see the regrowth of Chinese demand being a rather longer-term story,” he added. 

According to a latest Reuters report India's cut and polished diamond exports have gone down due to decreasing demand in the United States and China. As a result, India's domestic diamond consumption has skyrocketed, solidifying its status as a major force in the global diamond market. 

De Beers Group CEO Al Cook noted that lab-grown diamonds, especially in the US, have impacted natural diamond demand. He acknowledged the need to promote natural diamonds more effectively, stating, “We've got to... tell the story of natural diamonds far better.” The US currently leads the global diamond market.