Asia-Pacific Diamond Market Outlook, 2029

Asia-Pacific Diamond Market Outlook, 2029

The Asia-Pacific diamond market stands as a dynamic and vibrant sector within the global gemstone industry, reflecting the region's rich cultural heritage, economic growth, and evolving consumer preferences. Spanning diverse countries such as China, India, Japan, South Korea, and Australia, the Asia-Pacific region encompasses a wide spectrum of market dynamics, from traditional jewellery craftsmanship to emerging trends in luxury consumption. With a burgeoning middle class and increasing disposable incomes, countries across Asia and the Pacific have witnessed a surge in demand for diamonds, both as symbols of status and expressions of personal style. Moreover, the region's cultural traditions, such as weddings, festivals, and gift-giving ceremonies, further fuel the demand for diamond jewellery, particularly engagement rings and bridal sets. In recent years, technological advancements, e-commerce platforms, and changing consumer behaviours have reshaped the landscape of the diamond market in Asia Pacific, with online sales channels gaining prominence alongside traditional brick-and-mortar retailers. Additionally, sustainability, ethical sourcing, and transparency have become critical considerations for consumers in the region, driving the demand for responsibly mined diamonds and lab-grown alternatives. In many countries across the Asia-Pacific region, diamonds are deeply ingrained in wedding culture. Diamond engagement rings and bridal jewellery are considered essential symbols of love, commitment, and prosperity, leading to a robust demand for diamond jewellery, especially during wedding seasons. While countries like China and India dominate the Asia Pacific diamond market, other emerging markets in the region, such as Vietnam, Indonesia, and Thailand, are also experiencing growing demand for diamonds. As disposable incomes rise and consumer awareness increases, these markets present new opportunities for diamond retailers and manufacturers.

According to the research report, “Asia Pacific Diamond Market Research Report, 2028,” published by Bonafide Research, the Asia Pacific Diamond market is anticipated to grow with more than 6% CAGR from 2023–2028. Economic growth and increasing disposable incomes in countries across the Asia-Pacific region have led to a growing affluent middle class with greater purchasing power. As consumers become more financially stable, they are more likely to invest in luxury items such as diamond jewelry. Furthermore, diamonds hold significant cultural and social importance in many countries in the Asia-Pacific region. They are often associated with auspicious occasions such as weddings, engagements, and festivals and are considered symbols of love, commitment, and prosperity. The tradition of gifting diamond jewellery on such occasions drives demand throughout the year. Weddings are elaborate affairs in many Asian cultures, and diamond jewellery, particularly engagement rings and bridal sets, plays a central role in wedding ceremonies. The tradition of exchanging diamond rings symbolises love, fidelity, and lifelong commitment, leading to a consistent demand for diamond jewellery among couples. In some countries in the Asia-Pacific region, diamonds are viewed as a tangible asset and a store of value. As a result, there is a demand for investment-grade diamonds as a hedge against inflation and economic uncertainty. Investors often purchase diamonds as a long-term investment or as a means of diversifying their investment portfolios. The increasing penetration of the internet and the growing popularity of e-commerce platforms have made diamond jewellery more accessible to consumers in the Asia-Pacific region. Online retail channels offer a convenient and secure way to browse, compare, and purchase diamond jewellery, leading to increased sales and market penetration.

Market Drivers
• Rising Affluence: Economic growth and increasing disposable incomes across the Asia-Pacific region have led to a growing affluent middle class with greater purchasing power. As consumers become more financially stable, they are more inclined to invest in luxury items like diamond jewellery.
• Cultural Significance: Diamonds hold profound cultural and social importance in many countries within the Asia-Pacific region. They are often associated with significant life events such as weddings, engagements, and festivals, symbolising love, prosperity, and status. The tradition of gifting diamond jewellery on these occasions drives consistent demand throughout the year.

Market Challenges
• Competition from Lab-Grown Diamonds: The growing popularity of lab-grown diamonds presents a challenge to the natural diamond market in the Asia-Pacific region. Lab-grown diamonds offer a more affordable and ethically sourced alternative to mined diamonds, attracting environmentally conscious consumers and younger demographics.
• Ethical Sourcing Concerns: There is increasing scrutiny of the ethical sourcing of diamonds in the Asia-Pacific region, particularly with regards to issues such as child labour, worker rights, and environmental sustainability. Consumers are becoming more aware of these concerns and demanding greater transparency and accountability from diamond suppliers and retailers.

Market Opportunity
• Rising Affluence and Middle-Class Expansion: Economic growth in countries across the Asia-Pacific region has led to an expansion of the middle class and an increase in disposable incomes. This growing affluence creates opportunities for diamond retailers to tap into a larger consumer base with greater purchasing power, particularly in emerging markets such as China and India.
• Increasing Urbanisation and Lifestyle Changes: Urbanisation and lifestyle changes in the Asia-Pacific region are driving demand for luxury goods, including diamond jewelry. As more people migrate to cities and adopt modern lifestyles, there is a growing appetite for premium products and experiences, presenting opportunities for diamond retailers to cater to urban consumers' tastes and preferences.

Based on the types, they are segmented into natural and synthetic. Furthermore, based on the distribution channel, it includes B2B and B2C.

In the Asia-Pacific, synthetic diamonds are a growing market. The production of high-quality synthetic diamonds is now more economical and efficient thanks to developments in diamond synthesis technology. As a result, synthetic diamonds are now more widely available and reasonably priced in the Asia-Pacific market, providing a strong substitute for real diamonds. Consumers in the Asia-Pacific region are becoming more conscious of the ethical and environmental issues associated with diamond mining. Synthetic diamonds, which are produced in controlled laboratory environments, offer a more sustainable and ethically sound option compared to mined diamonds. As a result, there is a growing demand for synthetic diamonds among environmentally conscious consumers in the region. Furthermore, the B2C market is growing; the Asia-Pacific region has witnessed rapid digitalization, with increasing internet penetration and smartphone usage among consumers. This trend has facilitated the growth of online retail channels, enabling diamond retailers to reach a wider audience of consumers across diverse geographical locations. The proliferation of e-commerce platforms and digital marketplaces has revolutionised the retail landscape in the Asia-Pacific region. Online diamond retailers leverage these platforms to offer a wide selection of diamond jewellery, personalised shopping experiences, and convenient payment and delivery options, catering to the preferences of modern consumers.

In terms of application, it is segmented into jewellery and industry.

Furthermore, in Asia-Pacific, the jewellery segment leads the market. Jewellery, including diamond jewellery, holds profound cultural significance in many countries across the Asia-Pacific region. It is often associated with traditions, rituals, and ceremonies, such as weddings, engagements, festivals, and religious celebrations. Diamonds, in particular, symbolise love, prosperity, and status, making them highly desirable for use in jewellery pieces. Weddings are elaborate affairs in many Asian cultures, and diamond jewellery plays a central role in these ceremonies. Diamond engagement rings, bridal sets, and wedding bands are considered essential symbols of love, commitment, and lifelong union. The tradition of exchanging diamond rings during weddings drives consistent demand for diamond jewellery throughout the region. Gift-giving is an integral part of social etiquette and interpersonal relationships in the Asia-Pacific region. Diamond jewellery is often exchanged as gifts during special occasions such as birthdays, anniversaries, graduations, and holidays. The tradition of gifting diamond jewellery further drives demand for such products in the market. Diamond jewellery holds significant emotional value and sentimentality for many consumers in the Asia-Pacific region. It is often passed down as an heirloom from one generation to another, carrying memories, stories, and family legacies. The emotional attachment to diamond jewellery reinforces its enduring appeal and demand in the market.

Based on the report, the major countries covered include China, Japan, India, Australia, South Korea, and the rest of Asia Pacific.

China leads the diamond market. China's rapid economic growth over the past few decades has resulted in a significant increase in disposable incomes and a burgeoning middle class. As a result, there is growing demand for luxury goods, including diamond jewellery, among Chinese consumers. Diamonds hold cultural significance in China, particularly in the context of weddings, engagements, and other special occasions. Diamond jewellery is often exchanged as gifts during weddings and used to symbolise love, commitment, and prosperity, driving consistent demand for diamonds in the market. Weddings are elaborate affairs in Chinese culture, and diamond engagement rings and bridal jewellery are considered essential for couples. The tradition of exchanging diamond rings during weddings fuels demand for diamond jewellery throughout the year, making China a key market for diamond retailers. Diamonds are perceived as symbols of status, wealth, and social standing in Chinese society. Owning and wearing diamond jewellery signifies success, prosperity, and sophistication, leading to aspirational purchases among Chinese consumers who desire to showcase their social status through luxury goods. China has emerged as one of the world's largest markets for luxury goods, driven by a growing affluent class and increasing consumer spending on high-end products. Diamond jewelry is viewed as a luxury item and is highly sought after by Chinese consumers who value quality, craftsmanship, and prestige.

Diamond manufacturers are constantly developing new, inventive, and fashionable items to fulfill their consumers' evolving needs. They invest in R&D to develop more efficient synthetic diamonds suitable for industrial applications. While developing new goods, improving production processes, and navigating regulatory requirements, diamond market manufacturers typically collaborate with diamond miners, producers, regulatory bodies, and other industry stakeholders. Collaborations allow manufacturers to enhance their capacity, combine their knowledge, and develop unique solutions. To meet expanding market demand for diamonds, manufacturers are working to improve mining and production capacity while minimizing environmental effect. They are committed to supplying the best ethically sourced diamonds to meet the consumer's needs. Diamond manufacturers are generating more fashionable and exquisite items, as well as customisation and personalization options. They are also working with new technology to broaden the scope of the diamond market. The diamond market is expected to grow in the next years for a variety of reasons, including rising demand for trendy items and increased applications of diamonds in the construction, electronics, and automotive industries.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Diamond market Research Report with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Natural
• Synthetic

By Jewellery Application
• Ring
• Necklaces
• Earrings
• Others

By Industrial Application
• Construction and machinery
• Mining Tools
• Electronics
• Automotive
• Others

By Distribution Channel
• B2B
• B2C

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Diamond industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.