India's Diamond Market Soars: 2nd Globally!

India has officially surpassed key competitors to secure its position as the second-largest diamond jewellery market globally, now holding a 12% share of worldwide demand. This significant achievement places India behind only the United States and ahead of China and Japan.

The Natural Diamond Jewellery market in India is valued at an estimated Rs 785 billion. Ownership among women has risen to 15%, with an average spend of approximately US$1,700 per piece. The market is projected for robust growth, with demand expected to increase at a 12% CAGR through 2030.

Younger consumers are the primary drivers of this market growth. Generation Z alone contributes 51% of the total market value, with Millennials adding another 35%, collectively controlling 86% of the market. This demographic is characterized by a high acquisition rate and the highest average price paid per diamond piece.

Shifting consumer behavior shows a move away from 'locker luxury.' Currently, 52% of acquired diamonds are worn daily, a substantial increase from 2014 when most were reserved for special occasions. Notably, 64% of natural diamond jewellery is self-purchased by women, often to celebrate personal achievements.

The wedding segment remains crucial, representing 29% of the total market value, with brides themselves being the main purchasers. While affordability is a key barrier for some, the appeal of natural diamonds is strong, with outright rejection being low.

Lab-grown diamonds (LGDs) are also gaining traction, representing over a fifth of the total diamond market value acquired by female consumers in 2024. However, LGD acquisitions are more concentrated geographically and demographically, primarily in Tier 1 cities and among SEC A households.